A HELOC is typically used to finance large or unexpected purchases, like home renovations, medical payments and other emergencies. It’s a solid option for homeowners who have considerable home equity and are looking for easy access to additional funds.
MoneyGeek found that HELOC rates in Maryland range from 0.99% to 18%, and the best overall HELOC lender in the state is Bank of America. We recommend that you shop around and use our HELOC guide to find the best lenders and deals to suit your needs.
Home Equity Line of Credit (HELOC) Rates for 2023
Use MoneyGeek’s table below to have a quick overview of current equity rates, repayment terms, minimum requirements and other important information about home equity line of credit lenders as of May 2022.
It’s important to note that though rates and other loan features are constantly changing, MoneyGeek regularly updates our pages with the latest data. However, it’s always best to confirm any rates or loan terms 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 and 20-year repayment 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, 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 | 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 Maryland
Our goal at MoneyGeek is to help consumers find and select the best options for their needs and financial situation.
As for HELOCs, there are a limited number of lenders offering this type of loan, and most of these are national banks. If a national lender declines your HELOC application in Maryland, there are other options to explore. For instance, you may want to check if your local credit union finances HELOC loans.
Best Overall HELOC Lender in Maryland: Bank of America
- Bank of America
Bank of America offers HELOC products with fixed-rate options, additional discounts and no application, annual or closing fees.
- 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
on Bank of America Website
Best HELOC Lender for Good Credit in Maryland: U.S. Bank
- U.S. Bank
A U.S. Bank HELOC is an ideal option for borrowers with good credit who want low interest rates and no fees.
- 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
on U.S. Bank Website
Best HELOC Lender for Bad Credit in Maryland: Figure
- Figure
Figure has a low minimum credit score requirement of 620 — one of the lowest among its competitors.
- 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
on Figure Website
Best HELOC Lender for Competitive Rates in Maryland: PenFed
- PenFed Credit Union
PenFed offers the lowest introductory APR of 0.99% for six months.
- 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
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
A home equity line of credit (HELOC) and a home equity loan (HELOAN) both allow you to use your home as collateral in exchange for funds. However, understanding the differences between the two can allow you to pick the best option for you.
HELOANs allow homeowners to borrow against their home equity at a fixed interest rate and with fixed repayment terms. In contrast, a HELOC acts like a credit card where you can borrow up to a certain amount, usually up to 85%, of your home equity. Because HELOCs charge variable interest rates, the borrower isn’t locked into fixed monthly payments.
Another key difference is that whereas HELOAN borrowers receive the money as a lump sum, HELOC borrowers can only withdraw up to a specified credit limit that is determined by the lender.
MoneyGeek further breaks down the key differences between HELOCs and HELOANs 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
Applying for a HELOC is a simple, quick and convenient process, especially since most lenders have applications that can be completed entirely online. For the pre-approval process, you typically only need to provide basic personal and financial information and wait for the lender’s approval, which often only takes a few minutes.
Applying for a HELOC can be confusing, but MoneyGeek provided a step-by-step guide to simplify the process for you.
Determine how much you need
MoneyGeek recommends a home equity line of credit for homeowners who know how much they need to borrow. But keep in mind that, just like any type of loan, it’s easy to get into financial trouble if you don’t stick to a budget and make regular monthly payments. HELOCs are ideal for financing major expenses like home improvement projects and college education, as well as consolidating high-interest-rate debts.
Assess your financial standing
You must also take stock of your financial situation. We recommend that you check your credit score to see if it meets the lender’s minimum requirement. It’s also important to evaluate your current income and existing debt to make sure a HELOC is the best financial decision for you.
Shop around and compare lenders
Taking the time to research different lenders may save you money in the long term. It’s important to compare offerings from multiple providers, including all terms and fees, to make sure you get the best deal for your financial situation.
Apply
Most lenders have online applications, and several also allow you to apply in person or over the phone. Lenders typically require basic personal and financial information like verified documents including proof of income and employment, bank statements and mortgage statements. Applying for a HELOC is fast and stress-free as long as you’re prepared.
Use funds wisely
Once you receive your HELOC funds, it’s important to carefully track your spending. Failing to make payments could result in you losing your home, so it’s best to be cautious.
Frequently Asked Questions About HELOCs
To help you learn more, MoneyGeek answered some of the most frequently asked questions about HELOCs.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
- Bank of America. "Home Equity Line of Credit Application." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- U.S. Bank. "Home Equity FAQs." 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.
- Debt.org. "Home Equity Line of Credit (HELOC)." Accessed June 20, 2022.