The Best HELOC Rates and Lenders in Minnesota

A home equity line of credit, or HELOC, is a revolving line of credit secured by your home. With a HELOC, the interest rate is low because your home serves as collateral. Due to its lower interest rates, a HELOC is one of the better ways to cover large expenses or consolidate debts.

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You can use a HELOC to finance significant expenses, such as home renovations, education costs, medical bills and debt consolidation. This type of loan is perfect for homeowners with good credit ratings and considerable home equity.

If you're considering taking out a home equity line of credit, shop around and find a lender you can trust. Compare rates to see which one offers the best deal.

MoneyGeek found that Minnesota homeowners can currently find home equity line of credit rates ranging from 0.99% to 18%. Bank of America is the best home equity line of credit lender overall.

Home Equity Line of Credit (HELOC) Rates for 2023

When looking for a HELOC, it is important to compare interest rates and terms from different lenders to find the most suitable one.

The table below provides information about equity rates, repayment terms and other key details about home equity lenders as of May 2022. The rates and other details may change in the coming months, but MoneyGeek will update them as necessary.

  • 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
    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

    730

    10-year draw period, unspecified repayment period

    $90

    Not specified

  • 4.65% to 9.99%

    $35,000 to $300,000

    620

    10 to 30 years

    None

    1 to 2 weeks

  • 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
    (4.08% thereafter)

    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 Minnesota

MoneyGeek aims to help you find the most suitable HELOC lender for your financial requirements. We have compiled a list of the best HELOC lenders in Minnesota to help you find the perfect solution for your situation.

It’s worth noting there aren't many lenders that offer HELOCs, and the few that do usually only lend to borrowers with excellent credit scores. Should a national lender reject your HELOC application, MoneyGeek suggests checking with your local credit unions for other options.

Best Overall HELOC Lender in Minnesota: Bank of America


  • Bank of America

    Bank of America has no application fees, no closing costs and no annual fee.


    • 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 Minnesota: U.S. Bank


  • U.S. Bank

    U.S. Bank has flexible application options — you can apply by phone, online or by visiting a branch.


    • 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 Minnesota: Figure


  • Figure

    Figure's credit score requirements for a HELOC are among the lowest at 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

    on Figure Website

Best HELOC Lender for Competitive Rates in Minnesota: PenFed


  • PenFed Credit Union

    PenFed offers the lowest APR (0.99%) available to eligible borrowers.


    • 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

If you need to finance a major expense, home equity loans (HELOANs) and home equity lines of credit (HELOCs) are excellent options. It’s important to know the difference between the two to choose the right option for you.

Borrowers typically receive a lump sum of cash when they take out a HELOAN. In most cases, the interest rate and monthly payment on the loan are fixed. Borrowers who want predictability and don't want to overspend will benefit from a HELOAN.

HELOCs, however, work like credit cards, as they are revolving credit lines. You can withdraw money as often as necessary within a specified time-frame, up to a specified limit (like a credit card) and repay it as required. HELOC rates usually fluctuate, meaning they may change depending on economic conditions. Those who are good at budgeting and want more flexibility than what a home equity loan can offer should choose this option.

  • 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

Many lenders allow online applications for HELOCs, which can be convenient. A lender typically requires your contact details and personal information before it can approve your loan.

1

Determine how much you need

To apply for a HELOC, you must know the amount of credit you wish to access and how you will use it. HELOCs are suitable for numerous financial purposes, such as consolidating debt, remodeling a home and financing a college education.

2

Assess your financial standing

You need to determine if your financial situation meets the minimum lending requirements. Review your credit score, income and current loan-to-value ratio since these factors affect your interest rate. As you analyze your financial standing, you will also find out whether you have the ability to repay the debt.

3

Shop around and compare lenders

Finding the best HELOC lender for your needs and situation requires comparison shopping. Compare terms, rates and offerings. Ensure that you also check the closing costs, annual fees and rate discounts each lender provides.

4

Apply

Online HELOC applications are generally available, but some lenders require you to call or visit a physical branch. In most cases, you must submit information about your income and assets as part of your application.

5

Use funds wisely

Avoid falling deeper into debt by staying within your means once you begin withdrawing. Since your home is used as a collateral, keep in mind that if you can't make the payments, your house could be at risk.

Frequently Asked Questions About HELOCs

First-time borrowers may find it challenging to understand how a home equity line of credit works, so MoneyGeek has provided answers to some frequently asked questions below.

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