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 (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

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.

    • 6.740% for 6 months, then 9.550%APR Range
    • Not specifiedMinimum Credit Score
    • $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

    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
    • 730Minimum Credit Score
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time
    U.S. Bank

    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
    • 620Minimum Credit Score
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

    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
    • 660Minimum Credit Score
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • Not SpecifiedPre-Approval Time
    PenFed Credit Union

    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.

1

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.

2

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.

3

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.

4

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.

5

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.

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