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 (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

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%).

    • 9.55%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
    Bank of America

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


  • U.S. Bank

    U.S. Bank does not charge application or closing fees.

    • Not specifiedAPR 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

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.

    • 8.25%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

Best HELOC Lender for Competitive Rates in Missouri: PenFed


  • PenFed Credit Union

    PenFed's APR is 0.99% for eligible borrowers.

    • Not specifiedAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • Not SpecifiedPre-Approval Time
    PenFed Credit Union

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.

1

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.

2

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.

3

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.

4

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.

5

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