What’s a good HELOC rate in Maine?

In Maine, PenFed and Bank of America offer the lowest introductory rates at 1.99% and 0.99%, respectively, for the first six months. However, the rate you receive will depend on many factors, including your credit score and loan-to-value ratio.

What can I use a HELOC for in Maine?

Some examples of the use of HELOCs are for home upgrades and renovations, credit card repayment, debt consolidation, funding for college, etc.

Is HELOC interest tax-deductible in Maine?

According to the IRS, HELOCs are tax-deductible when you “ buy, build, or substantially improve ” your house. Questions about HELOCs, including tax deductions and other fees and rates, are best answered by your specific lender.

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

Borrowers in Maine can secure a line anywhere from $5,000 to $1,000,000, depending on the lender. Bank of America and PenFed Credit Union offer the highest loan amount to eligible borrowers. However, the amount you’ll be approved for depends on your credit profile.

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

Between a HELOC and a HELOAN, the best loan option depends on the borrower profile. HELOC functions similarly to a credit card in that it gives you access to cash in case of an emergency. If you require the funds in one lump sum, a HELOAN is a more preferable option.

Are HELOC rates fixed?

The interest rates for HELOCs are typically variable. Some lenders, however, might be able to offer you the option to convert all or a portion of the loan to a fixed rate.

The Best HELOC Rates and Lenders in Maine

A home equity line of credit (HELOC) uses the equity in your home as collateral in exchange for a revolving line of credit accessible over a period of time. HELOC funds can be used for virtually anything, including repaying credit card debt, paying for home renovations, funding education, etc.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

Morgan Hull

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.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit Rates
Best HELOC Lender Overall in Maine
Best HELOC Lender for Good Credit in Maine
Best HELOC Lender for Bad 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
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 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.
- 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 offers HELOCs in all 50 states and Washington, D.C. We chose it as the best overall lender for home equity lines of credit in Maine due to its lack of annual fees, its high loan limit and interest rate discount opportunities. Among these discounts are an autopay discount of 0.25%, an initial withdrawal discount of $10,000 and a preferred members discount of 0.375%.
Applying for a HELOC can be done completely online. Bank of America also offers mobile and online banking, which means you can easily view your account and make payments.
Borrowers should note that for higher credit lines exceeding $25,000, there is an early closure fee of $450 if you terminate your account within 36 months of opening it. In addition to the closure fee, you’ll also be subject to mortgage and government taxes, recording fees and closing agent and attorney fees.
Pros
No annual fee
Initial withdrawal discount up to 1.5%
Autopay discount of 0.25%
No closing costs
Online application

Cons
Early closure fee of $450
High minimum credit line of $25,000
Minimum credit score not specified
APR: 4.35% variable with a special introductory variable APR of 1.99% for six months
Loan Amount: $25,000 to $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 Maine: U.S. Bank

U.S. Bank
Borrowers with high credit scores exceeding 730 should consider a U.S. Bank loan.
- 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
MoneyGeek’s top pick for the best home equity line of credit for borrowers in Maine with excellent credit scores is U.S. Bank. Borrowers with credit scores exceeding 730 are eligible for the lowest APR rates and highest loan amounts.
Credit lines range from $15,000 to $750,000 with variable APRs between 4.20% and 9.35%. These are standard loan amounts and relatively lower interest rates in comparison to other lenders. Borrowers who apply for the U.S. Bank Platinum Checking Package may qualify for the lowest rate, and the annual fee may be waived for them.
Prospective borrowers should take note of a few additional fees associated with this lender. An early closure fee of 1% of the original line amount (maximum of $500) is charged to borrowers that close their account within the first 30 months of opening it. Additionally, the lender charges an annual fee of $90.
Pros
High loan amount
Autopay discount of 0.5%
No closing costs
Can apply online, by phone or in person
Has a fixed-rate option

Cons
Annual fee of $90 after the first year
High minimum credit score requirement
Early closure fee of 1% (maximum of $500)
Requires property insurance
Initial escrow-related funding costs
APR: 4.20% to 9.35%
Loan Amount: $15,000 to $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 Maine: Figure

Figure
Figure offers its HELOC product to borrowers with credit scores as low as 620.
- 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
Figure is the best home equity line of credit for borrowers in Maine that have poor credit scores — those with a credit score of 620 can still qualify for a HELOC. However, those with higher credit scores are eligible for lower interest rates and higher loan amounts. In some cases, pre-approval can take minutes, but you’ll typically receive a decision within 24 hours.
Figure's HELOC product has loan amounts that range from $15,000 to $400,000 with APRs starting at 3.24%. Repayment terms vary from 5 to 30 years, depending on the terms of your agreement.
Pros
Online application
Soft credit check
In-person appraisal not required
No prepayment penalties
Optional discounts and origination opportunities to lower payments

Cons
Property insurance required
Flood insurance required if located in a flood zone
Origination fee
APR: Starts at 3.24%
Loan Amount: $15,000 to $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 Maine: PenFed

PenFed Credit Union
Best for borrowers who want to lock in competitive rates in advance.
- 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
PenFed Credit Union offers competitive rates on a HELOC, starting with a promotional offer of 0.99% for the first six billing cycles. After which, all remaining balances convert to a minimum APR of 4.25%, not to exceed 18% for the fixed-rate option.
The highest loan amount and lowest interest rates are offered to borrowers with a fair credit score of 660 and above. Closing costs apply to lines that exceed $500,000. PenFed also charges a $99 annual fee to accounts that did not incur more than this amount in interest in a year.
Pros
Lowest introductory rate for the first six months
Lowest APRs
High loan amounts
Interest-only payments
Fixed-rate advance lock-in

Cons
Property insurance required
Closing costs
Annual fee
APR: Introductory APR of 0.99% for six months; 4.25% to 18% thereafter
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: 660
Annual Fees: $99
Pre-Approval Time: Not specified
on PenFed Credit Union Website

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,
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

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.