Best HELOC Rates and Lenders in Mississippi for 2024

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Edited byMorgan Hull

Updated: December 28, 2023

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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.

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Home Equity Line of Credit (HELOC) Rates for 2024

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.

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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

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

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Best HELOC Lender for Bad Credit in Mississippi: Figure

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Best HELOC Lender for Competitive Rates in Mississippi: PenFed

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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.

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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.

1

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.

2

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.

3

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.

4

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.

5

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.

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.

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.

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.

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

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.

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.

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