The Best HELOC Rates and Lenders in Michigan

A home equity line of credit, or HELOC, is a secured loan that uses your home as collateral. It gives borrowers access to funds that can be used to fund significant expenses like home renovations, college education, debt consolidation and more.

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A HELOC is often used to finance considerable expenses, such as college education, home renovations, medical bills and vacations, as well as for debt consolidation. It’s an ideal choice for homeowners who have considerable home equity that are looking for an additional source of funds with a relatively lower interest rate.

Based on MoneyGeek’s research, HELOC rates in Michigan range from 0.99% to 18%, and the best overall HELOC lender in the state is Bank of America.

Before opening a HELOC, it’s important to shop around to find the lender and rates that best suit your needs.

Home Equity Line of Credit (HELOC) Rates for 2023

The summary table below displays different lenders' equity rates, loan amounts, APRs, repayment terms and other important details. This information was updated as of May 2022, but rates are subject to change. Though MoneyGeek does its best to regularly revise our pages with up-to-date information, it’s always best to verify rates and terms with your chosen lender.

  • Lender
    Loan Amount
    Min. Credit Score Requirement
    Repayment Terms
    Annual Fees
    Pre-Approval Time
  • 3.75% to 18%

    $25,000 to $1,000,000


    10-year draw period
    and 20-year repayment period



  • Not specified

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

  • 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

  • 3.65% to 8.80%

    $15,000 to $750,000


    10-year draw period,
    unspecified repayment period


    Not specified

  • 4.65% to 9.99%

    $35,000 to $300,000


    10 to 30 years


    1 to 2 weeks

  • Starting at 3.99%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period


    Not specified

  • Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period


    24 hours

  • Starting at 3.50%

    $15,000 to $400,000


    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


    Not specified

  • Starting at 3.34%

    Starting at $25,000


    Not specified


    Not specified

  • 3.49% for 6 months
    (4.08% thereafter)

    Starting at $5,000

    Not specified

    15-year draw period
    with 15-year repayment period


    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


    Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Michigan

MoneyGeek is committed to helping consumers make the best financial decisions. Looking for a HELOC lender is no exception — we want you to find the best lender for your needs and situation.

There are a limited number of lenders offering HELOCs, and most of these are national banks. National banks often have strict lending requirements, such as high minimum credit scores, which may cause your HELOC application to be denied. If you’re rejected for a HELOC with a national bank, you should check with your local credit union to see if they offer HELOC loans.

Best Overall HELOC Lender in Michigan: Bank of America

  • Bank of America

    Bank of America offers low introductory APRs and several discount opportunities, making it our choice as the best overall HELOC lender.

    • 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

    on Bank of America Website

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

  • U.S. Bank

    U.S. Bank offers fixed rates without any application and closing fees.

    • 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

    on U.S. Bank Website

Best HELOC Lender for Bad Credit in Michigan: Figure

  • Figure

    Figure is the best option for borrowers with bad credit who want a seamless online HELOC application process.

    • 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

    on Figure Website

Best HELOC Lender for Competitive Rates in Michigan: PenFed

  • PenFed Credit Union

    PenFed offers the lowest introductory APR of 0.99% for the first six months.

    • 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

    on PenFed Credit Union Website

HELOC vs. Home Equity Loans

Although a home equity line of credit (HELOC) and a home equity loan (HELOAN) may appear similar, these are two distinct financial products that are best suited for specific types of borrowers.

HELOANs are disbursed as a lump sum and have fixed interest rates and repayment terms. This type of loan is best for those with poor spending habits, as you’ll receive a specific amount of money.

In contrast, a HELOC is a revolving credit line that is similar to a credit card, wherein you can withdraw money as often as needed up to a specified limit and repay your loan in monthly installments over time. HELOC rates are variable and are based on market conditions.

MoneyGeek summarizes the key differences between HELOCs and HELOANs in the table below.

    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

Applying for a HELOC is simple and convenient. Many lenders have an online application that only requires your basic personal and financial information. Once you’ve submitted the application, you may hear back from a lender within minutes.

Although applying for HELOC is a relatively simple process, it’s important to follow certain steps to make sure you find the best lender for you. MoneyGeek recommends taking the steps below:


Determine how much you need

Based on MoneyGeek’s study, a home equity line of credit is an ideal option for homeowners who know how much they need to borrow. HELOCs are an excellent choice for financing major expenses like home improvement projects or college education, as well as for consolidating debt, since it typically charges lower APRs compared to other types of loans.


Assess your financial standing

Check your ability to repay the loan by asking yourself a few simple questions. Is your income sufficient? Do you have any debts that you’re still paying off? If you don’t have a steady source of income and already have existing debt, taking out a HELOC may not be the smartest financial decision.


Shop around and compare lenders

After you’ve assessed your financial situation, you should compare different lenders’ rates and loan packages. This will help you find the best deal for your unique financial situation and needs. MoneyGeek advises that you take note of the terms, rates and fees to avoid being blindsided by hidden charges down the line.



HELOC applications can usually be done entirely online. But if you prefer the traditional route, some lenders still provide the option to apply via the phone or in person at a physical branch. To save time and stress, you should have all your required documents, including proof of income and/or employment and financial assets like bank statements and mortgage statements. Reviewing MoneyGeek’s practical tips when applying for a HELOC can help expedite the process.


Use funds wisely

Once you start withdrawing funds from your HELOC, take note of your payment due dates and commit to making regular payments. It’s important to remember that your HELOC is a loan with your home as collateral. To avoid possibly losing your home or incurring considerable debt, you should make timely payments and avoid overspending.

Frequently Asked Questions About HELOCs

Applying for and opening a home equity line of credit (HELOC) in Michigan can be an unfamiliar process to most individuals. Below are MoneyGeek’s answers to some commonly asked questions about HELOCs to help you have a better understanding of this topic.