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.
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 |
---|---|---|---|---|---|---|
3.75% to 18% | $25,000 to $1,000,000 | 660 | 10-year draw period | None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.99% special | $25,000 to $1,000,000 | Not specified | 10-year draw period, | Not specified | Not specified | |
3.65% to 8.80% | $15,000 to $750,000 | 730 | 10-year draw period, | $90 | Not specified | |
Starting at 3.99% | $10,000 to $500,000 | Not specified | 10-year draw period | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw period | None | 24 hours | |
Starting at 3.50% | $15,000 to $400,000 | 620 | 5 to 30 years | 3% to 4.99% | 24 hours | |
Starting at Prime - 0.50% | Starting at $17,500 | Not specified | 10-year draw period, | $50 | Not specified | |
Starting at 3.34% | Starting at $25,000 | 740 | Not specified | $50 | Not specified | |
3.49% for 6 months | Starting at $5,000 | Not specified | 15-year draw period | None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period, | 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
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
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
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
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, | Fixed interest rate |
Monthly Payment | Changes depending | Fixed monthly payments |
Repayment Terms | During the draw period, borrowers pay | Repayment starts as soon as |
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.