Best HELOC Rates and Lenders in Maryland for 2024

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Edited byMorgan Hull

Updated: December 28, 2023

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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.

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Home Equity Line of Credit (HELOC) Rates for 2024

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.

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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

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Best HELOC Lender for Good Credit in Maryland: U.S. Bank

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Best HELOC Lender for Bad Credit in Maryland: Figure

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Best HELOC Lender for Competitive Rates in Maryland: PenFed

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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.

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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.

1

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.

2

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.

3

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.

4

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.

5

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.

HELOC rates vary depending on your financial profile and chosen lender. In Maryland, PenFed Credit Union and Bank of America both offer a competitively low, six-month introductory APR of 0.99% and 1.99%, respectively.

In Maryland, you can use your HELOC to finance major expenses like home renovations or your child’s college education, as well as to consolidate high-interest debt.

The interest on a HELOC is usually tax-deductible. But since tax rules may periodically change, we advise you to check with a tax advisor or financial expert for more information regarding tax deductibility.

The maximum and minimum HELOC loan amounts tend to vary significantly by lender. That said, Bank of America and PenFed Credit Union offer the highest maximum loan amount of $1,000,000. Meanwhile, the lowest minimum loan amount is generally pegged at $5,000.

The choice between a HELOC and a HELOAN depends on your situation. HELOCs are a solid option if you prefer an open-ended credit line with variable interest rates, while HELOANs are best if you prefer having fixed interest rates and receiving your funds in a lump sum.

HELOC rates are usually variable and depend on market conditions, but some lenders offer fixed-rate options.

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