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.

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
and 20-year repayment period

None

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 period

Not specified

Not specified

3.65% to 8.80%

$15,000 to $750,000

730

10-year draw period,
unspecified repayment period

$90

Not specified

Starting at 3.99%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

$75

Not specified

Starting at 4.64%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment 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,
15-year repayment period

$50

Not specified

Starting at 3.34%

Starting at $25,000

740

Not specified

$50

Not specified

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

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.


    • 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 Iowa: U.S. Bank


  • U.S. Bank

    If you have good credit, U.S. Bank is worth evaluating.


    • 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 Iowa: Figure


  • Figure

    Figure is a perfect match 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 Iowa: PenFed


  • PenFed Credit Union

    PenFed Credit Union offers flexible borrowing limits for the right customer.


    • 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

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.

1

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.

2

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.

3

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.

4

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.

5

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.

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