What’s a good HELOC rate in Iowa?

Bank of America and PenFed Credit Union are among the HELOC lenders that offer the most competitive rates in Iowa. A variety of factors influence the rate of your home equity line of credit, such as your credit score and the loan-to-value ratio.

What can I use a HELOC for in Iowa?

Your HELOC can be used to pay for large expenses like home renovations, college tuition, investments and debt consolidation.

Is HELOC interest tax-deductible in Iowa?

Although it's likely, it's always a good idea to ask a professional. MoneyGeek suggests checking with your accountant or financial counselor to see if the interest on the HELOC is tax-deductible.

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

HELOC lenders in Iowa will normally allow you to borrow from $5,000 to $1,000,000, depending on the lender, your credit and your income.

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

HELOCs and home equity loans are both great options, but which one is best for you depends on your circumstances. A HELOC functions like a credit card that allows you to borrow up to a set amount as needed and only pay back what you withdraw. A home equity loan, meanwhile, is a one-time payment with monthly installments and a fixed interest rate.

Are HELOC rates fixed?

HELOC rates are variable, meaning they change according to the current economic climate. Other lenders, however, allow customers to switch their home equity line of credit to fixed rates.

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.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

Ashley Jacobs

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.

WHAT WE’RE GEEKING OUT ON

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

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.

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 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
Bank of America is MoneyGeek's top pick for the best overall home equity line of credit provider in Iowa, with loan amounts ranging from $25,000 to $1,000,000. The bank has no application or annual fees.
Bank of America may not be a good alternative for folks who prefer in-person interaction when applying for a HELOC, but it is good for borrowers looking to save money on interest rates. You can set up and manage recurring monthly payments from your checking or savings account to receive a 0.25% discount.
Using the bank's online application, you can apply for a HELOC. You will be told how to upload any essential documents and view the status of your loan application after completing the initial questions.
Pros
No application fee
Offers a wide range of discounts
High line of credit amount
No annual fees and closing costs
Available via online application

Cons
Eligibility requirements not available on website
Charges $450 as early termination fee
Some locations only allow a maximum line of credit of $500,000
Does not disclose minimum credit requirement
No information about how long pre-approval takes
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 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
Customers with a credit score of 730 or higher in Iowa may find U.S. Bank to be an appealing HELOC provider. The bank offers relatively affordable home equity lines of credit and home equity loans.
U.S. Bank has a variable rate, like other HELOCs, but it also offers a fixed-rate option, allowing you to convert any or all of your lines into a loan with a set rate and monthly payments. U.S. Bank offers credit lines ranging from $15,000 to $750,000 based on your credit history, available equity and current debt.
If you pay off your account and close it during the first 30 months, you'll have to pay an early closure fee of 1% of the initial line amount, up to $500.
Pros
Fixed rates available
No application fee
Low interest rate
Flexible ways to apply
No closing costs

Cons
Annual fee of $90
Minimum credit score must be 730
Early closure fee of 1% of the original line amount
Interest-only repayment may increase monthly payment
Offerings can vary by state
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 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
Due to its low minimum credit score requirement and low APR, as well as its innovative online tools, Figure is an ideal lender. While Figure does not charge account opening fees or penalties for early payments, it does charge an origination fee, which ranges from 3% to 4.99%, depending on your creditworthiness.
Borrowers with poor credit who are employed in Iowa should apply for a home equity line of credit with Figure. They can get a 0.25% interest rate reduction by setting up automatic payments. To be authorized for a Figure HELOC, you must have a credit score of at least 620. However, consumers with higher credit ratings have access to bigger loan amounts.
Since Figure only lends to single-family homes, planned urban developments (PUDs), townhouses and condos, you should double-check whether or not your property qualifies.
Pros
Perfect for borrowers with bad credit
Available via online application
Autopay discount of 0.25%
Funding initiated in as few as five days
Competitive interest rates

Cons
Origination fee
Select properties are eligible
Maximum loan amount of $400,000
Annual fee
Might 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 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
If you're looking for a home equity line of credit in Iowa with low rates, PenFed Credit Union might be worth looking into. You can acquire a loan line ranging from $25,000 to $1,000,000 if you have fair credit. However, if $99 in interest was not paid during the preceding 12-month period, an annual fee of $99 will be levied on each account anniversary.
Membership with PenFed Credit Union can provide you with a number of benefits, including inexpensive home equity lines of credit. If you're considering a HELOC, compare what PenFed has to offer with what other home equity lenders have to offer. PenFed allows you to begin the application process, including applying for membership, online. However, your application must be completed via a representative.
Pros
Competitive interest rates
Loan range from $25,000 to $1,000,000
Interest-only payments during the 10-year draw period
Offers fixed-rate option
0.99% APR for the first six months

Cons
Potential annual fee of $99
Available for eligible members only
Online application not available
Maximum APR is high
Potential appraisal costs
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

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.

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

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.