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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 (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

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.

    • 7.49% (introductory rate) then 9.90%APR Range
    • Generally $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • UndisclosedPre-Approval Time
    Bank of America

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.

    • 8.95% to 12.70%APR Range
    • $15,000 to $750,000 ($1 million in California)Loan Amount Range
    • 10-year draw period; up to 30 years repayment periodsRepayment Terms
    • Up to $75Annual Fees
    • UndisclosedPre-Approval Time
    U.S. Bank

Best HELOC Lender for Bad Credit in Indiana: Figure


  • Figure

    Figure is the top lender in Indiana for borrowers with bad credit.

    • 6.10% to 14.74%APR Range
    • $20,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

Best HELOC Lender for Competitive Rates in Indiana: PenFed


  • PenFed Credit Union

    PenFed Credit Union is perfect for customers looking for flexible borrowing limits.

    • Starting at 8.625%APR Range
    • $25,000 to $500,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • UndisclosedPre-Approval Time
    PenFed Credit Union

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.

1

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.

2

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.

3

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.

4

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.

5

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.

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