HELOCs are commonly used for repairs, education, investments, debt repayment and more. MoneyGeek recommends you shop around and research several lenders before applying for a HELOC to discover the best option for your needs.
HELOC rates start at a special promotional variable APR of 0.99% for six months and can go as high as 18% after that. Because of its low interest rates and incentives, MoneyGeek determined that Bank of America is the best overall HELOC lender in Kansas.
Home Equity Line of Credit (HELOC) Rates for 2023
It is important to evaluate rates and terms from many lenders when shopping for a HELOC. This way, you can choose the best option for your needs.
As of May 2022, the MoneyGeek table below summarizes home equity line of credit rates and relevant lender information. We update this table regularly since this information 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 | 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 | |
4.65% to 9.99% | $35,000 to $300,000 | 620 | 10 to 30 years | None | 1 to 2 weeks | |
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 Kansas
Unfortunately, there are not many lenders that provide HELOCs. Those that do are primarily national banks.
MoneyGeek has outlined Kansas' top home equity line of credit lenders to assist you in choosing the best option for your needs and requirements. Our goal is to help you, as a consumer, find the right option. If a national lender rejects your HELOC application, MoneyGeek suggests considering local credit unions as an option.
Best Overall HELOC Lender in Kansas: Bank of America
- Bank of America
Bank of America is the leading HELOC lender in Kansas thanks to its lack of fees.
- 6.740% for 6 months, then 9.550%APR 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 Kansas: U.S. Bank
- U.S. Bank
Applying with U.S. Bank is possible anytime, anywhere.
- 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 Kansas: Figure
- Figure
Figure is a HELOC lender with one of the lowest required credit scores.
- 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 Kansas: PenFed
- PenFed Credit Union
PenFed Credit Union offers competitive rates and a high loan maximum.
- 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
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
While they seem identical, a home equity loan (HELOAN) and a home equity line of credit (HELOC) are two different products.
A homeowner can borrow against the value of their property with a home equity loan. Home equity loans also come with fixed interest rates and repayment terms. The money is given to borrowers in one lump payment by the bank.
A HELOC, on the other hand, functions similarly to a credit card. During the draw time, borrowers can withdraw a specific amount stipulated by the lender. Variable interest rates are also available on HELOCs.
The table below further explains the differences.
HELOC | Home Equity Loan | |
|---|---|---|
Interest Rate | Adjustable interest rate, | Fixed interest rate |
Monthly Payment | Changes depending on | 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
Since many lenders allow you to fill out forms online, applying for a home equity line of credit is simple. Generally, you must first provide your personal information and contact information. Then you wait for approval.
Determine how much you need
For homeowners that can budget properly and know the exact amount they need to borrow, MoneyGeek advises a home equity line of credit. HELOCs are also great for big purchases, including investments, debt reduction and education. If you simply need $1,000 for a short home improvement project, a home equity line of credit might not be the best option.
Assess your financial standing
Evaluate your financial status in addition to assessing how much you need to borrow. To determine your ability to repay the loan, most lenders have minimum credit score criteria. If you can take little action to improve your credit before applying for a HELOC, you might be able to get a better interest rate.
Shop around and compare lenders
Browsing lenders and evaluating their services might be beneficial. This will assist you in locating the best bargain for your specific situation and requirements. You may avoid paying additional fees and take advantage of cheap rates before the loan begins if you choose the correct home equity line of credit lender.
Apply
In most cases, you can apply for a HELOC online. To save time, gather the information you'll need for your application. Verified paperwork such as bank statements, mortgage statements and evidence of income could be required.
Use funds wisely
Be mindful of the payback terms and additional costs after you begin pulling funds from your HELOC. To budget for monthly spending, take into account how much you have to pay while your home equity line of credit is open.
Frequently Asked Questions About HELOCs
It can be difficult to understand how to open a home equity line of credit. MoneyGeek has answered some frequently asked questions regarding HELOCs to help you learn more.
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 21, 2022.