A HELOC is ideal for financially responsible homeowners with considerable home equity that are looking to pay for tuition and fees, medical expenses, home improvement projects, debt consolidation and more. The interest on a HELOC varies and usually is lower than credit card rates and personal loan rates. For homeowners in Nebraska, MoneyGeek found that the current home equity line of credit rates range from 0.99% to 18%.
Before applying for a home equity line of credit, it’s vital to research other lenders to know which will suit your needs. Lenders review your financial history, including your credit score and loan-to-value (LTV) ratio, to assess your eligibility. Comparing different lenders’ terms and requirements will help you find the best lender for you.
Home Equity Line of Credit (HELOC) Rates for 2023
To help you compare lenders, MoneyGeek gathered information about each lender, including equity rates, repayment terms, minimum credit score requirements and other vital details in the table below.
The information displayed in the table was updated as of May 2022. At MoneyGeek, we strive to provide customers with the latest information, so we regularly update our pages as new information becomes available.
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 Nebraska
MoneyGeek’s mission is to help you find the best HELOC lender for your financial needs and goals. Aside from national banks, a few lenders offer home equity line of credit loans. If you don’t qualify for a HELOC from a national bank, you should check to see if your local credit union finances HELOC loans.
Best Overall HELOC Lender in Nebraska: Bank of America
- Bank of America
Bank of America offers a low introductory APR of 1.99% for six months.
- 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
Best HELOC Lender for Good Credit in Nebraska: U.S. Bank
- U.S. Bank
Apply through the phone, on the website or during a branch visit.
- Not specifiedAPR Range
- $15,000 to $750,000Loan Amount Range
- 10-year draw period; unspecified repayment periodRepayment Terms
- $90Annual Fees
- Not specifiedPre-Approval Time
Best HELOC Lender for Bad Credit in Nebraska: Figure
- Figure
Borrowers with poor credit scores can qualify for a HELOC with Figure.
- 8.25%APR Range
- $15,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
Best HELOC Lender for Competitive Rates in Nebraska: PenFed
- PenFed Credit Union
Offers an introductory APR of 0.99% for the first six months.
- 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
HELOC vs. Home Equity Loans
Though a home equity line of credit (HELOC) and a home equity loan (HELOAN) both use your home as collateral, there are distinct differences between the two.
HELOANs let homeowners borrow against the value of their homes. This type of loan has fixed interest rates and fixed repayment terms. Borrowers also receive their funds 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 set by the lender. HELOCs may have variable interest rates. Therefore, borrowers aren’t locked into specific monthly payments during repayment.
We’ve detailed the differences between HELOCs and HELOANs in the table below.
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 often easy, as most lenders offer simple online applications. To save even more time, borrowers can gather their personal information and contact details in advance. Once you’ve submitted your application, including all the necessary documents to verify your personal information, you’ll wait for the lender’s feedback and approval.
Determine how much you need
A HELOC may not suit everyone. MoneyGeek highly recommends a home equity line of credit for homeowners who stick to a budget very closely and for those who know how much they want to borrow. This is ideal for large expenses such as investments, bonds, debt consolidation, medical fees and home improvement projects. A HELOC is not the best option for small expenses.
Assess your financial standing
To know if you are eligible and how much you need to borrow, review your financial standing. Ask yourself: are you capable of paying off your loan? Do you have a steady income stream? Are there any other liabilities you need to settle?
Most lenders look at your credit score to assess your capacity to repay the loan. We recommend that you try to improve your credit score before applying to secure the lowest interest rate.
Shop around and compare lenders
Before applying to a specific lender, it’s best to shop around and compare quotes from different lenders. You’ll find the best deal based on your current situation and financial needs. It’s important to carefully review the terms and fees for each lender to avoid paying fees and to take advantage of low rates before the loan starts.
Apply
Applying for a HELOC has become more accessible to most borrowers because of lenders’ online applications. To save time, you should gather the information you need, such as bank statements, pay stubs, mortgage statements and employment certificates, before you start your application. MoneyGeek shares these tips to easily apply for a HELOC.
Use funds wisely
After you’re approved for your HELOC, it’s important to properly manage your funds. Carefully tracking and monitoring how much you’ve withdrawn will ensure that you don’t exceed the limits of your credit or budget. Remember, a HELOC uses your home as collateral, so it’s essential to make timely payments to avoid possible foreclosure on your home.
Frequently Asked Questions About HELOCs
Applying for your first home equity line of credit may be confusing. To help you better understand the topic, MoneyGeek answered some of the most commonly asked questions about HELOCs.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- Figure. "Get a Home Equity Line." Accessed June 21, 2022.
- PenFed Credit Union. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 21, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 21, 2022.