What’s a good HELOC rate in Missouri?

Several factors determine the rate of your home equity line of credit, such as your credit score and loan-to-value ratio. Bank of America and PenFed Credit Union are offering the most competitive rates in Missouri.

What can I use a HELOC for in Missouri?

You can use HELOCs for various expenses, including paying medical bills, consolidating debt, investing, relocating, renovating your home and funding your child's education.

Is HELOC interest tax-deductible in Missouri?

The Internal Revenue Service (IRS) claims that your HELOC interest rate is tax-deductible if you use the funds to buy, build or substantially improve your home. Ultimately, your lender can tell you whether your interest rate is deductible.

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

Credit lines usually range between $5,000 and $1,000,000.

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

HELOANs and HELOCs both have advantages, but you need to decide which one is right for you. With a HELOC, you can borrow money up to a certain limit and repay only what you withdraw. A HELOAN, on the other hand, is a lump sum payment with a fixed interest rate and monthly payment.

Are HELOC rates fixed?

The answer is usually no. HELOCs are revolving lines of credit with variable interest rates determined by the amount borrowed.

The Best HELOC Rates and Lenders in Missouri

Home equity lines of credit, also known as HELOCs, refer to loans secured by your home equity. They function similarly to credit cards, allowing you to borrow up to a certain limit whenever needed. You can use the funds for several purposes, including debt consolidation, education financing and home improvements.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

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You can use HELOCs for home renovations, college education, medical bills or debt consolidation. Ultimately, your home equity line of credit is yours to use however you choose.

Be sure to shop around and compare rates from different lenders if you plan to apply for a HELOC. MoneyGeek's research shows that home equity loans are available in Missouri at rates between 0.99% and 18%. MoneyGeek ranks Bank of America as the best lender for home equity lines of credit in Missouri due to its low-interest rates and discounts.

WHAT WE’RE GEEKING OUT ON

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

Home Equity Line of Credit (HELOC) Rates for 2023

It’s important to compare rates and terms from different lenders when choosing the best HELOC.

The table below offers information about equity rates, repayment terms and other important details about home equity line of credit lenders as of May 2022. Rates and other information are subject to change in the months to come, and MoneyGeek will keep them updated.

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 Missouri

MoneyGeek aims to assist you in finding the best HELOC lender to meet your financial goals. To this end, we’ve compiled a list of the best options in Missouri.

Many lenders do not offer HELOCs, and those that do typically lend only to people with excellent credit scores. If a national lender rejects your HELOC application, check with your local credit union as an alternative.

Best Overall HELOC Lender in Missouri: Bank of America

Bank of America
Bank of America offers discounts on automatic payments (0.25%) and initial withdrawals (1.5%).
- 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
MoneyGeek ranked Bank of America as the best HELOC lender in Missouri. The bank offers credit lines ranging from $25,000 to $1,000,000, making it suitable for those who want to borrow larger amounts.
Borrowers who make automatic monthly payments get a 0.25% discount, while those who make initial $10,000 withdrawals will receive up to a 1.5% discount on their interest rates.
Bank of America does not charge an application or annual fee. Furthermore, you can pay and transfer money virtually anywhere using its mobile app.
Pros
No application, closing or annual fees
0.25% discount for automatic payments and 1.5% for initial withdrawals
Fast online application process
Has a fixed-rate option
Mobile and online banking

Cons
The eligibility requirements are not upfront
APR: 1.99% introductory APR for six months, then minimum 4.35% variable APR
Loan Amount: $25,000–1,000,000
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 Missouri: U.S. Bank

U.S. Bank
U.S. Bank does not charge application or 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
Missouri borrowers with a credit score of 730 or higher will find U.S. Bank an attractive option. Lines of credit range from $15,000 to $750,000, which is excellent for customers seeking a higher credit limit. The bank does not charge application or closing fees.
Borrowers who are already bank customers can also take advantage of discounts. For example, the interest rate on your checking or savings account will decrease by 0.5% if you set up automatic payments. In addition, you can waive the bank's annual fee of $90 if you have a U.S. Bank Platinum Checking Package.
If you choose to pay off your credit line within the first 30 months, however, the bank charges you a fee of 1% of your line amount, or up to $500. U.S. Bank offers various loan application options: online, over the phone or at a branch.
Pros
No closing costs
No application fees
Lines up to $750,000
Has a fixed-rate option
Flexible ways to apply

Cons
Annual fee of up to $90
Minimum credit score requirement of 730
Early closure fee of 1% of the original line amount (maximum $500)
APR: 4.20%–9.35%
Loan Amount: $15,000–750,000
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 Missouri: Figure

Figure
Figure's HELOC credit score eligibility requirements (620) are among the lowest in the industry.
- 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
Among all the HELOC lenders in Missouri, Figure offers the lowest credit score requirement at 620, making it the best lender for borrowers with bad credit. The lender also offers the option of up to 30 years to pay off your debt, so it’s a good choice for borrowers looking for extended repayment terms.
Figure offers home equity lines of credit ranging from $15,000 to $400,000. In addition, there is no account opening fee, monthly maintenance fee or penalty for early payments. Origination fees may range from 3% to 4.99%, based on your credit rating.
With Figure, you can save 0.25% by setting up automatic payments. Additionally, becoming a member of a credit union will reduce your APR by 0.50%. Thus, you can lower your interest rate by as much as 0.75%.
Some properties may not be eligible for a Figure HELOC. Contact the lender to determine whether your property is viable collateral for your home equity line of credit.
Pros
Apply online
Eligible with fair credit
APR starts at 3.24%
Get pre-approved within 24 hours
Quick online customer service response

Cons
Charges 3%–4.99% origination fee
Not all properties are eligible
Doesn’t lend to unemployed borrowers
APR: Starts at 3.24%
Loan Amount: $15,000–400,000
Repayment Terms: 5–30 years
Minimum Credit Score: 620
Pre-Approval Time: 24 hours
Fees: 3%–4.99% origination fee
on Figure Website

Best HELOC Lender for Competitive Rates in Missouri: PenFed

PenFed Credit Union
PenFed's APR is 0.99% for 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
A home equity line of credit from PenFed Credit Union comes with an introductory rate of 0.99%, one of Missouri's most affordable rates.
Those with credit ratings of 660 and above may be able to obtain a line of credit of up to $1 million. The bank charges an annual fee of $99 unless you paid the same amount in interest the previous year.
PenFed covers nearly all HELOC closing costs, except for borrowers who close their accounts or pay off their accounts before 36 months. Currently, no online application is available, but the lender accepts phone applications.
Pros
Lines up to $1,000,000
Has a fixed-rate option
0.99% APR for the first six months
Interest-only payments during the draw period
Covers most HELOC-related closing costs

Cons
Potential annual fee of $99
Minimum credit score requirement of 660
No online application
Requires membership to apply
APR: 0.99% for six months; 4.25% to 18% after that
Loan Amount: $25,000–1,000,000
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

It's a great idea to finance a major expense with a home equity loan (HELOAN) or home equity line of credit (HELOC). Knowing the differences between each option is crucial to deciding which one is best for you.

Borrowers receive a lump sum of cash when they obtain a HELOAN. Monthly payments and interest rates are usually fixed. The advantages of a HELOAN include knowing exactly how much you pay each month and not being able to go over budget.

On the other hand, HELOCs are revolving credit lines. Just like credit cards, you can withdraw funds whenever necessary within a set time-frame, up to a predetermined limit, and repay them as specified. HELOC rates usually fluctuate according to economic conditions. HELOCs are a good option for experienced budgeters who seek a little more flexibility than what a home equity loan can offer.

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 are easy and fast since most lenders provide online application options. Lenders typically require your contact and personal information as part of the application process outlined below.

Determine how much you need

The amount of credit you need and how you plan to use it are important considerations before applying for a HELOC. You can use a HELOC for different financial purposes, including debt consolidation, home remodeling and college tuition financing.

Assess your financial standing

Check if your financial situation fits the lender’s requirements. During the assessment process, lenders will ask about your credit score, income and current debt-to-value ratio. These variables determine your interest rate. Analyzing your financial standing will also help you determine whether you’re able to repay the loan.

Shop around and compare lenders

When looking for the best HELOC, you must compare lenders. Check their rates, terms and loan offerings before making your decision. You should also compare lenders' closing costs, annual fees and rate discounts.

Apply

You can generally apply for a HELOC online, but some lenders require you to call or visit a branch. You’ll need to provide information about your income and assets when applying.

Use funds wisely

Keep your budget in check once you start withdrawing so that you don't fall deeper into debt. Your house is collateral for the loan, so the bank can repossess your house if you cannot make the payments.

Frequently Asked Questions About HELOCs

Many first-time borrowers have questions about how home equity lines of credit work. Below, you will find answers to some frequently asked questions.

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.