What’s a good HELOC rate in Montana?

HELOC rates differ based on your financial standing. In Montana, PenFed Credit Union and Bank of America each offer a competitively low, six-month introductory APR of 0.99% and 1.99%, respectively.

What can I use a HELOC for in Montana?

In Montana, homeowners may use their HELOC for expenses like debt consolidation, medical costs, home improvement projects, educational fees and investments.

Is HELOC interest tax-deductible in Montana?

The interest on a HELOC is usually tax-deductible. However, ask a financial advisor or tax expert to be sure.

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

Bank of America and PenFed Credit Union offer the highest loan amount of $1,000,000. On the other hand, the lowest minimum loan amount is usually around $5,000.

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

This depends on your current situation. HELOCs are ideal if you prefer an open-ended credit line with variable interest rates. However, home equity loans are given in a lump sum and have fixed interest rates.

Are HELOC rates fixed?

HELOC rates aren’t usually fixed. Interest rates will also vary depending on how much you borrow.

The Best HELOC Rates and Lenders in Montana

A home equity line of credit or HELOC is an open-ended credit line you can borrow against the value of your home. Borrowers can withdraw money when needed up to their maximum loan amount. A HELOC can fund expenses, such as home improvements, tuition and fees, debt consolidation and investments.

Advertising & Editorial DisclosureLast Updated: 12/6/2022

Edited By

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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.

WHAT WE’RE GEEKING OUT ON

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

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
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 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.
- 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 picks Bank of America as the best overall HELOC lender in Montana. This lender has one of the lowest introductory variable APRs in Montana at 1.99% for the first six months. After that, rates start at 4.35%.
Bank of America is suitable for those who need larger loan amounts, as its maximum is $1,000,000. The bank is also great for homeowners who prefer to manage their accounts online or through a mobile app.
However, Bank of America doesn’t state its minimum credit score requirement on its website, so you’ll need to reach out to see whether you are eligible.
Pros
One of the lowest introductory APRs
High loan maximum
No application, closing or annual fees
Online application process
Mobile application for easy account management

Cons
High maximum APR
Minimum credit score not mentioned online
APR: 1.99% for six months, 4.35% after that
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 Montana: U.S. Bank

U.S. Bank
Easily apply for a HELOC via phone, online, or during a branch visit.
- 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 was founded in 1863 and operates in 50 states and Washington, DC. This lender is suitable for homeowners with good credit and offers low APRs starting at 4.20%. Those with a U.S. Bank personal checking account receive the lowest interest rates. To apply, you can visit a branch, call 800-642-3547 or fill out an application online.
Even if U.S. Bank is a top-rated lender in Montana, it might not suit everyone’s needs. Think of applying for another HELOC lender if your credit score is below 730 or you don’t want to pay an annual fee of $90.
Pros
Flexible ways to apply
Interest rates as low as 3.65%
High maximum loanable amount
No application fees
No closing costs

Cons
Charges an annual fee
No information on their website about the repayment period
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 Montana: Figure

Figure
Figure has one of the lowest credit score requirements for HELOCs: 620.
- 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
Figure is a suitable HELOC lender for homeowners in Montana with a fair credit score of 620 or above. It also fits the needs of borrowers who’d like an extended repayment term of up to 30 years. With Figure, Montana homeowners can borrow up to a maximum of $400,000, a reasonably competitive amount for individuals with less than excellent credit.
However, Figure isn’t the best option for homeowners who prefer not to pay origination or recording fees. Homeowners who need to borrow more than $400,000 also need to consider another lender.
Pros
Online application
APR starts at 3.24%
Pre-approval within 24 hours
Eligible with fair credit
Fast online customer service

Cons
Charges annual fees
Lower loan cap of $400,000
May charge recording fees
Charges origination fee
APR: Starts at 3.24%
Loan Amount: $15,000 up to $400,000
Repayment Terms: 5–30 years
Minimum Credit Score: 620
Fees: 3%–4.99% origination fee
Pre-Approval Time: 24 hours
on Figure Website

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.
- 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
Based on MoneyGeek’s research, PenFed has the most attractive home equity line of credit rates in Montana, starting with its extremely low, six-month 0.99% introductory APR. This lender is also suitable for homeowners who need to finance significant expenses since it offers loans up to a maximum of $1,000,000.
However, PenFed may not work for those who want to apply for a HELOC online. This lender also charges an annual fee of $99 if the borrower fails to pay the same amount in interest during the previous year.
Pros
High maximum loan amount
0.99% APR for the first six months of the loan
Ability to switch from a variable to a fixed rate
10-year draw period; 20-year repayment period

Cons
No online application
$99 annual fee
APR: 0.99% for first six months; 4.25%–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 Fees: $99 conditional
Pre-Approval Time: Not applicable
on PenFed Credit Union Website

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,
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

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.