You can use a HELOC to shoulder significant expenses, such as educational costs, medical fees, home improvement projects, debt consolidation and more. A HELOC is ideal for homeowners with considerable home equity who are responsible with credit. The interest rate on a HELOC is usually lower than the rates on credit cards and personal loans. HELOC lenders will check your home’s loan-to-value ratio (LTV) to evaluate whether you have enough equity to borrow against.
MoneyGeek found that current Montana home equity line of credit rates range from 0.99% to 18%. Before applying for a home equity line of credit, it’s crucial to check which lender suits your needs. Always compare rates to ensure you’re getting the best deal available.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below provides an overview of lender equity rates, repayment terms and other essential details as of May 2022. Please note that rates and information continually change. MoneyGeek will regularly update this table with the most current 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 | |
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 Montana
MoneyGeek’s mission is to help you find the best HELOC lender based on your financial needs and goals. Remember that aside from national banks, not many lenders offer home equity line of credit loans. If a national lender denies your application, see whether your local credit union finances HELOC loans.
Best Overall HELOC Lender in Montana: Bank of America
- Bank of America
Bank of America offers a 1.99% introductory APR for six months.
- 7.49% (introductory rate) then 9.90%APR Range
- Generally $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Good Credit in Montana: U.S. Bank
- U.S. Bank
Easily apply for a HELOC via phone, online, or during a branch visit.
- 8.95% to 12.70%APR Range
- $15,000 to $750,000 ($1 million in California)Loan Amount Range
- 10-year draw period; up to 30 years repayment periodsRepayment Terms
- Up to $75Annual Fees
- UndisclosedPre-Approval Time
Best HELOC Lender for Bad Credit in Montana: Figure
- Figure
Figure has one of the lowest credit score requirements for HELOCs: 620.
- 6.10% to 14.74%APR Range
- $20,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Best HELOC Lender for Competitive Rates in Montana: PenFed
- PenFed Credit Union
PenFed Credit Union offers an introductory APR of 0.99% for the first six months.
- Starting at 8.625%APR Range
- $25,000 to $500,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- UndisclosedPre-Approval Time
HELOC vs. Home Equity Loans
A home equity loan (HELOAN) and a home equity line of credit (HELOC) seem similar but are two distinctively different products.
Home equity loans let a homeowner borrow against the value of their home. Moreover, home equity loans have fixed interest rates and fixed repayment terms. Borrowers receive the money from the bank as a lump sum.
On the other hand, a HELOC acts like a credit card. Borrowers can withdraw a specific amount during the draw period. HELOCs have variable interest rates. Hence, borrowers aren't locked into specific monthly payments during repayment.
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
Applying for a HELOC is convenient since several lenders let you complete the application online. You must provide your personal information and contact details, then wait for the lender's approval. MoneyGeek outlines important parts of the process below.
Determine how much you need
A HELOC isn't for everyone. MoneyGeek suggests a home equity line of credit for homeowners who can adhere to a budget and know how much they need to borrow. HELOCs are ideal for significant expenses, such as investments, debt consolidation and medical fees. A HELOC may not suit you if you only need money for a small home improvement project that would cost less than $1,000.
Assess your financial standing
Review your financial situation to determine your eligibility and how much you need to borrow. Ask yourself: are you financially stable and capable of repaying your loan? Do you have other liabilities to settle? Most lenders require a minimum credit score as an indicator of your ability to repay the loan. If you can boost your credit score before applying, you’ll secure a HELOC with a lower interest rate.
Shop around and compare lenders
Researching lenders and comparing their offers will help you find the best deal based on your situation and needs. With the best HELOC lender, you can avoid paying fees and take advantage of low rates.
Apply
Research and collect the information you need for your application in advance. Prepare verified documents like bank statements, mortgage statements, employment certificates or even pay stubs to ensure a smooth HELOC application process.
Use funds wisely
Once you start withdrawing funds from your HELOC, remember the repayment terms and other fees. Monitor how much you need to pay while your HELOC is open and budget this amount as part of your monthly expenses.
Frequently Asked Questions About HELOCs
Applying for a home equity line of credit (HELOC) can be an unfamiliar experience. To help you further, MoneyGeek answered some commonly asked questions about HELOCs.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- Figure. "Get a Home Equity Line." Accessed June 13, 2022.
- PenFed Credit Union. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.