You can use a home equity line of credit to cover major expenses like home renovations, college education, medical bills or debt consolidation.
If you plan on applying for a HELOC, make sure you shop around and compare lenders’ rates to get the best deal. According to MoneyGeek’s research, home equity lines of credit in Mississippi are currently offered at interest rates ranging from 0.99% to 18%. We also chose Bank of America as the best overall home equity line of credit lender in Mississippi because of its low interest rates and discounts.
Home Equity Line of Credit (HELOC) Rates for 2023
To find the best HELOC lender for your needs, you should compare different lenders’ home equity line of credit rates and terms. MoneyGeek simplified the process for you by including important information about each lender, i.e., interest rates, repayment terms and borrower requirements, in the table below.
The information in the table was updated as of May 2022. Rates and terms are constantly changing, so at MoneyGeek, we do our best to regularly revise our pages with up-to-date information.
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 | 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, | Not specified | Not specified | |
3.65% to 8.80% | $15,000 to $750,000 | 730 | 10-year draw 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 | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw 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, | $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 | None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period, | None | Not specified |
MoneyGeek’s Picks for Best HELOC Lenders in Mississippi
At MoneyGeek, it’s our mission to help you find the best HELOC lender for your financial needs. To assist you in finding the right HELOC lender in Mississippi, we’ve assembled a list of the top lenders in the state for different borrower needs.
HELOCs are not widely offered by lenders, and the few that do are generally national banks that have strict borrower requirements. If you don’t qualify for a HELOC from a national bank, your local credit union may be a better alternative.
Best Overall HELOC Lender in Mississippi: Bank of America
- Bank of America
Borrowers can save money on their HELOC with Bank of America’s multiple discount opportunities.
- 6.740% for 6 months, then 9.550%APR 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 Mississippi: U.S. Bank
- U.S. Bank
U.S. Bank offers credit lines up to $750,000 with no application fees or closing costs.
- 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 Mississippi: Figure
- Figure
Figure offers credit lines at relatively low APRs to borrowers with low credit scores.
- 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 Mississippi: PenFed
- PenFed Credit Union
PenFed offers eligible borrowers the lowest introductory APR of 0.99% for 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
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
Both home equity loans (HELOANs) and home equity lines of credit (HELOCs) are great ways to finance major expenses. To decide which option is best for you, it’s important to understand the differences between the two.
A HELOAN typically provides the borrower with a lump sum of cash. Usually, the interest rate and monthly payment for the loan are fixed. With a HELOAN, borrowers can enjoy predictable payments without exceeding their budget.
HELOCs, however, are revolving credit lines similar to credit cards. Money can be withdrawn whenever needed within a specified time-frame, up to a specified limit, and repaid as required. Unlike a HELOAN that has a fixed rate, a HELOC has a variable rate that will fluctuate based on economic conditions. This option is well-suited for people who have good budgeting skills and those that are looking for flexible spending limits.
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
HELOC applications can often be quickly and easily completed online, though the availability of online applications varies by lender. Lenders typically require your contact information and personal details as part of the application.
Though applying for a HELOC is a relatively simple process, we recommend taking the following steps to ensure that you get the best deal for your financial situation.
Determine how much you need
Before applying for a HELOC, you need to know how much credit you want and how you will utilize it. HELOCs can be used for a variety of financial purposes including consolidating debt, remodeling a home and financing college education.
Assess your financial standing
Assess whether your financial situation meets the minimum requirements for lending. In the assessment process, you will be asked about your credit score, income and current loan-to-value ratio since these factors determine your interest rate. The analysis of your financial standing will also reveal whether you are capable of repaying the debt.
Shop around and compare lenders
Comparing HELOC lenders is essential to find the best lender for your situation and needs. Make sure you compare their terms, rates and loan offerings. You should also review the closing costs, annual fees and rate discounts provided by each lender.
Apply
Although most lenders allow you to apply online for a HELOC, a few require you to call or visit a branch. When you apply, you are usually required to provide details about your income and assets, so preparing this documentation beforehand can save you time and stress.
Use funds wisely
It’s important to keep track of your spending and stay within your prescribed budget. Keep in mind that a HELOC uses your home as collateral, so you could lose your home if you miss payments or default on your HELOC.
Frequently Asked Questions About HELOCs
We answered some frequently asked questions below to help first-time borrowers find the best home equity lines of credit.
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.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.