The Best HELOC Rates and Lenders in Iowa
A home equity line of credit (HELOC) is a revolving line of credit that you can use to pay for major expenses or consolidate high-interest debt. Instead of borrowing a single lump sum, you will be approved for a maximum loan amount that you can use anytime.
Before applying for a HELOC, shop around and compare different lenders to find the best deal for your needs. You can use a home equity line of credit for renovations, education, investment, debt repayment, emergencies and retirement.
HELOC rates can begin with a special promotional variable APR of 0.99% for six months, then increase to a variable APR of up to 18%. MoneyGeek ranks Bank of America as the best overall HELOC lender in Iowa due to its low interest rates and incentives.
Home Equity Line of Credit (HELOC) Rates for 2023
When shopping for a HELOC, it's important to compare rates and terms from several lenders. This can help you get the best rates.
The MoneyGeek table below highlights home equity line of credit rates and pertinent lender information as of May 2022. We update the table regularly since these details can change at any time.
- LenderAPRLoan AmountMin. Credit Score RequirementRepayment TermsAnnual FeesPre-Approval Time
3.75% to 18%
$25,000 to $1,000,000
660
10-year draw period
and 20-year repayment periodNone
N/A
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
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 periodNot specified
Not specified
3.65% to 8.80%
$15,000 to $750,000
730
10-year draw period,
unspecified repayment period$90
Not specified
4.65% to 9.99%
$35,000 to $300,000
620
10 to 30 years
None
1 to 2 weeks
MoneyGeek’s Picks for Best HELOC Lenders in Iowa
Since our goal is to help consumers, MoneyGeek created a list of the leading home equity line of credit lenders in Iowa to help you choose the best option for your needs and situations.
You should keep in mind that not many lenders provide HELOCs, and those that do are mostly national banks that exclusively lend to people with good to exceptional credit. If your HELOC application is turned down by a national lender, MoneyGeek recommends looking into local credit unions as an alternative.
Best Overall HELOC Lender in Iowa: Bank of America
- Bank of America
Bank of America offers a wide range of discounts for customers.
- 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
on Bank of America Website
Best HELOC Lender for Good Credit in Iowa: U.S. Bank
- U.S. Bank
If you have good credit, U.S. Bank is worth evaluating.
- 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
on U.S. Bank Website
Best HELOC Lender for Bad Credit in Iowa: Figure
- Figure
Figure is a perfect match 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
on Figure Website
Best HELOC Lender for Competitive Rates in Iowa: PenFed
- PenFed Credit Union
PenFed Credit Union offers flexible borrowing limits for the right customer.
- 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
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
Understanding the difference between home equity loans (HELOANs) and home equity lines of credit (HELOCs) is critical when selecting which is the best option for you.
Because a HELOAN is a one-time payment given to a borrower, it will benefit borrowers seeking dependability. The interest rate and monthly payments are usually set for the entire loan term.
Meanwhile, borrowers that are good with money may want to seek a home equity line of credit. Like a credit card, a HELOC allows you to withdraw money as often as you need within a set duration and requires you to repay the amount borrowed. Rates on HELOCs are frequently variable, meaning they might change depending on the economy.
The table below breaks down the differences even further.
- HELOCHome Equity Loan
Interest Rate
Adjustable interest rate,
but fixed-rate options are availableFixed interest rate
Monthly Payment
Changes depending on
the amount of money borrowedFixed 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 interestRepayment starts as soon as
the money is given to the borrowerFund Disbursements
Line of credit
Lump sum delivery
How to Apply for a HELOC
Most lenders allow applicants to supply basic information and wait for approval by using online applications. This makes applying for a home equity line of credit quite simple. MoneyGeek explains how to apply for a HELOC in the section below.
Determine how much you need
Before you apply for a home equity line of credit, you need to determine how much credit you will need and how you will utilize it. A HELOC can be used for a range of financial purposes, including debt consolidation, investments and home upgrades. Before applying for a HELOC, you must know your desired credit line amount and how you’ll use it. A HELOC can be used for various financial purposes, including debt consolidation, home renovations and college expenses.
Assess your financial standing
You will need to analyze your financial situation, including your credit score, income and current loan-to-value ratio, to see if you meet the borrowing requirements. All of these factors contribute to determining your rates. You can also determine whether or not you have the financial means to repay your debt.
Shop around and compare lenders
Only by comparing and examining services, costs and terms across various lenders can you choose the best option for your needs. You should also investigate each lender's annual fees, closing costs and rate discounts.
Apply
Even though the majority of HELOC applications are completed online, certain lenders need you to call or apply in person. Usually, you must submit information about your assets and income as part of the application process.
Use funds wisely
Commit to your limit after you begin withdrawing to avoid getting into more debt. Remember that if you miss a payment, you could lose your home.
Frequently Asked Questions About HELOCs
Understanding how a home equity line of credit works can be confusing. To help you get started, MoneyGeek has answered some frequently asked questions about HELOCs.
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.