What’s a good HELOC rate in Mississippi?

The interest rate for a HELOC depends on your financial situation. The two most competitive Mississippi lenders are PenFed and Bank of America, since they both offer introductory rates of 0.99% and 1.99%, respectively.

What can I use a HELOC for in Mississippi?

HELOCs can be used for a variety of expenses, including paying medical bills, consolidating debt, investing, relocating, renovating your home and funding your child's education.

Is HELOC interest tax-deductible in Mississippi?

Most HELOC interest is tax-deductible, but you should consult a financial advisor for more information. You can also determine how much to budget for by consulting with a financial advisor.

How much money can I borrow with a HELOC in Mississippi?

Depending on your lender and creditworthiness, your credit line amount varies. Your credit line can be anywhere between $5,000 and $1,000,000.

Is a HELOC better than a home equity loan (HELOAN)?

There are benefits to both HELOCs and HELOANs, but depending on your financial situation, one will better suit your needs. As the name suggests, HELOCs allow you to borrow money up to a certain amount and repay only what you withdraw. In contrast, HELOANS are lump sums with fixed rates and monthly payments.

Are HELOC rates fixed?

Most lenders only offer HELOCs at variable rates — a HELOC functions as a revolving line of credit with fluctuating interest rates based on the market and the amount borrowed. However, some lenders do offer fixed-rate HELOCs.

The Best HELOC Rates and Lenders in Mississippi

A home equity line of credit, also known as HELOC, refers to a loan secured by your home equity. HELOCs are similar to credit cards in that they allow you to borrow up to a specific limit whenever you need it. Borrowers typically use a HELOC to consolidate debt, fund education expenses and pay for home improvements.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

Morgan Hull

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.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit Rates
Best HELOC Lender Overall in Mississippi
Best HELOC Lender for Good Credit in Mississippi
Best HELOC Lender for Bad Credit in Mississippi

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
PenFed Credit Union
3.75% to 18%
$25,000 to $1,000,000
660
10-year draw period
and 20-year repayment period
None
N/A
PNC Bank
Not specified
Not specified
Not specified
Not specified
Not specified
Not specified
Bank of America
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
U.S. Bank
3.65% to 8.80%
$15,000 to $750,000
730
10-year draw period,
unspecified repayment period
$90
Not specified
Discover
4.65% to 9.99%
$35,000 to $300,000
620
10 to 30 years
None
1 to 2 weeks
Flagstar
Starting at 3.99%
$10,000 to $500,000
Not specified
10-year draw period
and 20-year repayment period
$75
Not specified
SunTrust/Truist
Starting at 4.64%
$10,000 to $500,000
Not specified
10-year draw period
and 20-year repayment period
None
24 hours
Figure
Starting at 3.50%
$15,000 to $400,000
620
5 to 30 years
3% to 4.99%
24 hours
Citizens Bank
Starting at Prime - 0.50%
Starting at $17,500
Not specified
10-year draw period,
15-year repayment period
$50
Not specified
TD Bank
Starting at 3.34%
Starting at $25,000
740
Not specified
$50
Not specified
Connexus Credit Union
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
Regions Bank
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 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.
- 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
Bank of America has earned MoneyGeek's top spot for the best HELOC lender in Mississippi. This bank is a good option for borrowers who are looking to receive discounts on their interest rates. Automatic monthly payments are eligible for a 0.25% discount, while initial minimum withdrawals of $10,000 will receive a 1.5% interest rate discount.
The lender is also suitable for those who wish to borrow a large amount as it offers home equity lines of credit ranging from $25,000 to $1,000,000. There are no application or annual fees with Bank of America. In addition, Bank of America's mobile app lets you pay and transfer money almost anywhere.
While the lender is our top choice for HELOC loans in Mississippi, it may be difficult to know if you qualify: the lender does not specify its borrower requirements online. Furthermore, those looking for a small amount of funding may find its minimum credit line amount of $25,000 too high.
Pros
No application, closing or annual fees
Autopay discount of 0.25%
Initial withdrawal discount of 1.5%
Fast online application process
Fixed-rate option

Cons
No eligibility requirements disclosed online
High minimum loan amount
Pre-approval time not disclosed online
APR: 1.99% introductory APR for six months, then minimum 4.35% variable APR
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: Not specified
Annual Fees: None
Pre-Approval Time: Not specified
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
U.S. Bank is a good option for borrowers in Mississippi with a credit score of 730 or more. It offers lines of credit ranging from $15,000 to $750,000, which is great for those seeking a higher credit limit. The bank also does not charge an application fee or a closing fee.
Borrowers who are existing U.S. Bank customers, as well as those that are able to make automatic payments, will save even more money. By setting up automatic payments, you’ll be eligible for a discount of 0.5%. You can also waive the bank's annual fee of $90 if you have a U.S. Bank Platinum Checking Package.
The bank, however, charges an early closure fee of 1% of your line amount or a maximum of $500 if you choose to pay your line off within the first 30 months of opening it.
Pros
No closing costs
No application fees
High maximum loan amount
Fixed-rate option
Application available online, in person or over the phone

Cons
Annual fee up to $90
High minimum credit score requirement
Early closure fee of 1% of the original line amount (maximum $500)
APR: 4.20% to 9.35%
Loan Amount: $15,000 to $750,000
Repayment Terms: 10-year draw period; unspecified repayment period
Minimum Credit Score: 730
Annual Fees: $90
Pre-Approval Time: Not specified
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
For Mississippi homeowners with a low credit score of 620 or higher, Figure is the best lender for a home equity line of credit. The lender offers home equity lines of credit ranging from $15,000 to $400,000 at a starting APR of 3.24%. The variety of repayment terms, from 5 to 30 years, also allows borrowers to customize their HELOC to best fit their financial situation.
Figure charges no maintenance fees or penalties for early payments. However, you may be required to pay an origination fee based on your credit score. Borrowers can save 0.25% on their interest rates just by setting up automatic payments. Joining a credit union will also reduce your APR by 0.5%.
Not all properties are eligible for a Figure HELOC, so it’s important to check with this lender to determine if your property qualifies.
Pros
Online application
Low minimum credit score requirement
Low starting APR
Pre-approval within 24 hours
Quick online customer service response

Cons
Origination fees
Only certain properties are eligible
Unemployed borrowers are ineligible
APR: Starts at 3.24%
Loan Amount: $15,000 to $400,000
Repayment Terms: 5 to 30 years
Minimum Credit Score: 620
Pre-Approval Time: 24 hours
Fees: None
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
- N/APre-Approval Time
With an introductory rate of 0.99% for the first six months, PenFed Credit Union offers the most competitive interest rates among its competitors for a HELOC.
Borrowers with a fair credit score of 660 or higher can qualify for credit lines from $25,000 to $1,000,000. After the first six months, interest rates ranging from 4.25% to 18% will apply to credit lines. Borrowers with higher credit scores will qualify for higher credit limits and lower interest rates.
PenFed covers almost all HELOC-related closing costs, but borrowers who pay off their accounts or close them within 36 months won’t benefit from these terms. Additionally, a $99 annual fee applies to all accounts that did not accrue that amount in interest over the course of a year. Currently, the lender doesn't offer online applications, but you can apply by phone.
Pros
High maximum loan amount
Fixed-rate option
Introductory APR of 0.99% for the first six months
Interest-only payments during the draw period
Lender covers most HELOC-related closing costs

Cons
Potential annual fee of $99
Fair minimum credit score requirement
No online application
Membership required to apply
APR: Introductory APR of 0.99% for six months; 4.25% to 18% thereafter
Loan Amount: $25,000 to $1,000,000
Repayment Terms: 10-year draw period; 20-year repayment period
Minimum Credit Score: 660
Annual Fee: $99 conditional
Pre-Approval Time: Not applicable
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,
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

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.