What’s a good HELOC rate in Indiana?

The rate on your home equity line of credit is determined by a number of criteria, including your credit score and the loan-to-value ratio. The most competitive rates in Indiana are offered by Bank of America and PenFed Credit Union.

What can I use a HELOC for in Indiana?

You can utilize your HELOC to fund major purchases, including home renovations, college tuition, investments and debt consolidation.

Is HELOC interest tax-deductible in Indiana?

MoneyGeek recommends you verify that the interest on the HELOC is tax-deductible with your accountant or financial advisor. It most likely is, but it's always smart to double-check the laws in your state.

How much money can I borrow with a HELOC in Indiana?

Depending on the lender and your credit and income, lenders will typically enable you to borrow up to 75% to 90% of your available equity. This can range from $5,000 to $1,000,000 in Indiana.

Is a HELOC better than a home equity loan (HELOAN)?

Both HELOCs and home equity loans are good choices, but which one is best for you depends on your needs. A HELOC is like a credit card that allows you to borrow up to a certain limit as needed and only pay back the amount you withdraw. A home equity loan is a lump sum payment with a fixed interest rate and monthly installments.

Are HELOC rates fixed?

HELOC rates are variable, which means they vary depending on the specific current economic conditions. However, some lenders allow consumers to move to fixed rates on their home equity line of credit.

The Best HELOC Rates and Lenders in Indiana

A home equity line of credit (HELOC) is a credit line secured by your house's equity. HELOCs, similar to credit cards, allow you to borrow up to a set maximum as often as you need. You can put your money toward debt consolidation or home upgrades.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

Ashley Jacobs

People use HELOCs for a variety of reasons, including renovations, education, investment, debt repayment, emergencies and retirement.

It's critical to compare various lenders before applying for a HELOC to discover the best offer for your needs. HELOC rates start at a special promotional variable APR of 0.99% for six months, then can go up to an 18% variable. Due to its low interest rates and discounts, MoneyGeek considers Bank of America as the top overall HELOC lender in Indiana.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit Rates
Best HELOC Lender Overall in Indiana
Best HELOC Lender for Good Credit in Indiana
Best HELOC Lender for Bad Credit in Indiana

Home Equity Line of Credit (HELOC) Rates for 2023

It is highly recommended to research lenders' rates and terms when selecting a HELOC. This can help you find the best deal.

As of May 2022, the MoneyGeek table below summarizes home equity line of credit rates as well as relevant lender information. This information can change at any time, and we update it regularly to keep it current.

Lender
APR
Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time
PenFed Credit Union
3.75% to 18%
$25,000 to $1,000,000
660
10-year draw period
and 20-year repayment period
None
N/A
PNC Bank
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Bank of America
1.99% special
introductory variable
APR for 6 months,
then as low as
4.35% variable
$25,000 to $1,000,000
Not specified
10-year draw period,
20-year repayment period
Not specified
Not specified
U.S. Bank
3.65% to 8.80%
$15,000 to $750,000
730
10-year draw period,
unspecified repayment period
$90
Not specified
Discover
4.65% to 9.99%
$35,000 to $300,000
620
10 to 30 years
None
1 to 2 weeks
Flagstar
Starting at 3.99%
$10,000 to $500,000
Not specified
10-year draw period
and 20-year repayment period
$75
Not specified
SunTrust/Truist
Starting at 4.64%
$10,000 to $500,000
Not specified
10-year draw period
and 20-year repayment period
None
24 hours
Figure
Starting at 3.50%
$15,000 to $400,000
620
5 to 30 years
3% to 4.99%
24 hours
Citizens Bank
Starting at Prime - 0.50%
Starting at $17,500
Not specified
10-year draw period,
15-year repayment period
$50
Not specified
TD Bank
Starting at 3.34%
Starting at $25,000
740
Not specified
$50
Not specified
Connexus Credit Union
3.49% for 6 months
(4.08% thereafter)
Starting at $5,000
Not specified
15-year draw period
with 15-year repayment period
None
24 hours
Regions Bank
3.75% to 10.63% variable
$10,000 to $500,000
Not specified
10-year draw period,
and then 20 years for repayment
None
Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Indiana

Not many lenders provide HELOCs, and those that do are primarily national banks that only lend to borrowers with good to excellent credit. If a national lender rejects your HELOC application, MoneyGeek suggests looking at local credit unions as an alternative.

Since our goal is to help consumers, we compiled a list of the best Indiana home equity line of credit lenders to assist you in finding the best option based on your needs and circumstances.

Best Overall HELOC Lender in Indiana: Bank of America

Bank of America
If you are looking for discounts, Bank of America is the best lender.
- 1.99% special introductory variable APR for 6 months, then as low as 4.35% variableAPR Range
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- Not specifiedPre-Approval Time
MoneyGeek's pick for the best overall home equity line of credit lender in Indiana is Bank of America, which offers loan amounts ranging from $25,000 to $1,000,000. The bank does not charge any application or yearly fees. Plus, it covers the costs of closing lines worth up to and including $1,000,000.
Bank of America is a great option for borrowers trying to save money on interest rates. For example, you can get a 0.25% interest rate discount by setting up and maintaining recurring monthly payments from your Bank of America checking or savings account. Preferred Rewards members can get even more discounts from Bank of America.
Pros
No application and annual fees
Offers autopay discount
1.99% introductory APR
High line of credit amount
Offers online application

Cons
Eligibility requirements not publicly shared
Early termination fee of $450
Doesn’t reveal any pre-approval timelines
Minimum credit line is $25,000
Some locations only offer up to a $500,000 loan
APR: 1.99% for six months; 4.35% thereafter
Loan Amount: $25,000–1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: Not specified
Annual Fees: None
Pre-Approval Time: Not specified
on Bank of America Website

Best HELOC Lender for Good Credit in Indiana: U.S. Bank

U.S. Bank
If you have good credit, U.S. Bank is the ideal HELOC lender for you.
- 4.20% to 9.35%APR Range
- $15,000 to $750,000Loan Amount Range
- 10-year draw period; unspecified repayment periodRepayment Terms
- $90Annual Fees
- Not specifiedPre-Approval Time
U.S. Bank might be an appealing HELOC choice for Indiana customers with a credit score of 730 or higher. The bank offers excellent home equity lines of credit.
Depending on your credit history, available equity and current debt, U.S. Bank offers lines ranging from $15,000 to $750,000. Borrowers with less-than-perfect credit, on the other hand, should shop around to find a different lender for their certain needs.
If your account is paid off and closed during the first 30 months, you will also have to pay an early closure fee of 1% of the initial line amount, a maximum of $500.
Pros
Fixed-rated option
Flexible application options
Free to apply
Fairly low interest rate
No closing costs

Cons
Charges a $90 annual fee
Requires a minimum credit score requirement of 730
Interest-only repayment may increase monthly payment
Early closure fee of 1% of the original line amount, maximum of $500
Different states have different offerings
APR: 4.20%–9.35%
Loan Amount: $15,000–750,000
Repayment Terms: 10-year draw period; unspecified repayment period
Minimum Credit Score: 730
Annual Fees: $90
Pre-Approval Time: Not specified
on U.S. Bank Website

Best HELOC Lender for Bad Credit in Indiana: Figure

Figure
Figure is the top lender in Indiana for borrowers with bad credit.
- From 6.55% to 15.54%APR Range
- $15,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Figure is an excellent lender because of its low minimum credit score requirement and low APR, as well as its unique online solutions. It offers home equity lines of credit in Indiana ranging from $15,000 to $400,000.
While Figure does not charge account opening fees or early payment penalties, it does charge a 3% to 4.99% origination cost. This is based on your creditworthiness and location.
Borrowers with bad credit who are employed in Indiana should consider applying for a Figure HELOC. You may also save 0.25% by setting up automatic payments with Figure.
However, you must check whether or not your property is eligible since Figure only offers loans on single-family residences, townhouses, planned urban developments (PUDs) and condos.
Pros
Membership discounts
Available for borrowers with bad credit
Competitive interest rates
Funding initiated in as few as five days
Provides 0.25% autopay discount

Cons
Origination fee of up to 4.99% on initial draw
Only select properties are eligible
Maximum loan amount of $400,000
Has annual fees
May charge recording and subordination fees
APR: Starts at 3.24%
Loan Amount: $15,000–400,000
Repayment Terms: 5 to 30 years
Minimum Credit Score: 620
Annual Fees: None
Pre-Approval Time: 24 hours
on Figure Website

Best HELOC Lender for Competitive Rates in Indiana: PenFed

PenFed Credit Union
PenFed Credit Union is perfect for customers looking for flexible borrowing limits.
- 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- N/APre-Approval Time
PenFed Credit Union may be worth considering if you're looking for a home equity line of credit in Indiana with competitive rates. Interest rates start at 4.25% once the promotional six-month 0.99% APR period ends.
If you have fair credit, you can get a loan line ranging from $25,000 to $1,000,000. However, you have to keep in mind that if $99 in interest was not paid during the previous 12-month period, an annual fee of $99 will be assessed on the next account anniversary.
Home equity lines of credit have variable interest rates that are subject to increase on a monthly basis once the transaction is closed. For loan lines of $500,000, closing charges range from $500 to $8,500 with PenFed Credit Union.
Pros
Loans from $25,000 to $1,000,000
0.99% APR for the first six months
Provides fixed-rate option
Competitive interest rates
Interest-only payments during the 10-year draw period

Cons
No online application
Potential annual fee
Application only available for members
Maximum APR is high
You might have to pay an appraisal fee
APR: 0.99% for first six months; 4.25%–18% thereafter
Loan Amount: $25,000–1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: 660
Annual Fees: $99
Pre-Approval Time: Not applicable
on PenFed Credit Union Website

HELOC vs. Home Equity Loans

While both are good solutions to fund large expenses, knowing the distinctions between home equity loans (HELOANs) and home equity lines of credit (HELOCs) is crucial when deciding which is the best option for you.

Borrowers who want dependability will benefit from a HELOAN because it is a one-time payment made to a borrower. The interest rate and monthly payments are normally fixed for the duration of the loan.

Meanwhile, borrowers who are proficient at budgeting may consider a home equity line of credit. With a HELOC, you can withdraw money as often as you need within a certain timeframe and you must repay the amount borrowed – like a credit card.

The table below outlines more differences.

HELOC
Home Equity Loan
Interest Rate
Adjustable interest rate,
but fixed-rate options are available
Fixed interest rate
Monthly Payment
Changes depending
on the amount of money borrowed
Fixed monthly payments
Repayment Terms
During the draw period, borrowers pay
interest on the money they borrowed;
after the draw period, they repay any
principal owed in addition to interest
Repayment starts as soon as
the money is given to the borrower
Fund Disbursements
Line of credit
Lump sum delivery

How to Apply for a HELOC

Applying for a home equity line of credit is usually simple since most lenders allow applicants to provide basic information via an online application and then wait for approval. Below, MoneyGeek discusses the processes to take when applying for a HELOC.

Determine how much you need

A HELOC can be utilized for a variety of financial needs, such as debt consolidation, investment and home renovations, among others. You must know your intended credit line amount and how you will use it before applying for a home equity line of credit.

Assess your financial standing

To discover if you meet the borrowing requirements, you will need to assess your financial standing, including your credit score, income and existing loan-to-value ratio. These are all aspects that go into setting your rates. Through this, you can also decide if you have the financial means to repay what you owe.

Shop around and compare lenders

The only way to find the best HELOC lender for your needs and situation is to compare the services, fees and conditions of different lending companies. You should also consider the annual fees, closing charges and rate discounts charged by each lender.

Apply

Although the majority of HELOC applications can be completed online, certain lenders require you to contact them by phone or visit a physical location. Typically, the application procedure requires you to submit details about your assets and income.

Use funds wisely

To prevent further debt, stick to your budget after you start withdrawing money. Keep in mind that if you fall behind on your payments, you risk losing your home.

Frequently Asked Questions About HELOCs

For first-time HELOC borrowers, learning how a home equity line of credit works might seem complicated. MoneyGeek answers some frequently asked questions below to help you get started.

sources

Bank of America. "Making some home improvements? We can help.." Accessed June 7, 2022.
Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
Bank of America. "Home equity loan vs. line of credit? Here’s what you need to know." Accessed June 7, 2022.
U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
Figure. "Homeowners, We're Here for You." Accessed June 13, 2022.
Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
Mortgage Loan. "Home Equity Line of Credit Calculator." Accessed June 20, 2022.