Homeowners in a financially stable situation can use a home equity line of credit to cover large expenses like education, medical costs and home renovations. To qualify for most HELOCs, borrowers must meet certain requirements like having a good credit score or having at least 15% to 20% of equity in their homes.
HELOC policies vary by lender, but generally, credit limits range from $5,000 to $1,000,000 with APRs between 0.99% and 18%. According to our research, Bank of America offers the best home equity line of credit in Maine.
Home Equity Line of Credit (HELOC) Rates for 2023
To find the best lender for a home equity line of credit, you’ll want to compare rates and terms. MoneyGeek made the process easier for you by including different lender rates and HELOC details in the table below.
These are the latest rates as of May 2022, but it’s important to note that rates can vary over time. We do our best to provide you with the most recent information available, but you should always verify information with your preferred lender.
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 Maine
To help homeowners find the best lender for their needs, MoneyGeek identified the top home equity line of credit lenders in Maine.
Typically, only large national banks provide home equity lines of credit. These institutions often have strict requirements that may prevent you from qualifying for a HELOC. If you aren’t eligible for a HELOC with a national lender, you should check with your local credit union.
Best Overall HELOC Lender in Maine: Bank of America
- Bank of America
Bank of America offers borrowers additional discounts on their rates, saving them money.
- 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 Maine: U.S. Bank
- U.S. Bank
Borrowers with high credit scores exceeding 730 should consider a U.S. Bank loan.
- 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 Maine: Figure
- Figure
Figure offers its HELOC product to borrowers with credit scores as low as 620.
- 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 Maine: PenFed
- PenFed Credit Union
Best for borrowers who want to lock in competitive rates in advance.
- 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
Homeowners can borrow money against the value of their homes via a home equity line of credit (HELOC) or through a home equity loan (HELOAN). Though they sound similar, the best option for you will depend on your needs.
A HELOAN has a fixed interest rate and a fixed term. Your funding is disbursed in a lump sum format, after which borrowers immediately begin to make monthly payments.
With a HELOC, your funds function like a credit card. Borrowers are able to withdraw funds on an as-need basis. The interest rate on a HELOC is variable, so you won’t pay the same amount every month.
We’ve included more information about the differences between a HELOC and a HELOAN in the table below.
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
To apply for a HELOC, borrowers only need to provide basic information online. Most lenders have a home equity line of credit calculator that allows you to approximate your rate and credit limit.
Determine how much you need
Money borrowed from a HELOC is typically used for home improvement projects, home upgrades, mortgage payments, credit card balances and debt consolidation. Before applying for a HELOC, borrowers should know how much they want to borrow for a particular financial need.
Assess your financial standing
Before submitting an application for a HELOC, it’s wise to evaluate your financial situation. Factors like your credit score, income and the existing loan-to-value ratio will determine whether you'll be approved for such a loan.
Shop around and compare lenders
Comparing lenders in your state gives you an idea of the rates available for your profile. Make sure to take note of which lenders offer the lowest rates and whether you meet their criteria.
Apply
You can typically submit your HELOC application entirely online. To make the process faster, you should gather any necessary documents beforehand, including bank and mortgage bills, tax returns and proof of income.
Use funds wisely
Since your home will be used as collateral, you’ll want to carefully monitor your spending with a HELOC. An example of a smart use of a HELOC is for home improvements, whereby you’ll use your funds to increase the value of your home.
Frequently Asked Questions About HELOCs
If you’re a first time borrower, you might be overwhelmed by all the information available about home equity line of credit products. To help make the process easier for you, MoneyGeek answered some of the most commonly asked questions about HELOCs.
sources
- Bank of America. "Home Equity Line of Credit." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- Figure. "Home Equity Line of Credit." Accessed June 13, 2022.
- PenFed. "Home Equity Line of Credit." Accessed June 7, 2022.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.