A HELOC would be ideal for borrowers who want funds for home renovations, college fees, business expenses or any emergency need. You can also use it to consolidate debt, pay off student loans and more.
MoneyGeek’s research shows that Bank of America is the best overall HELOC lender in New Jersey. Based on the lender, we found that home equity line of credit rates in the state range from 0.99% to 18%. If you want affordable rates, it’s best to shop around and compare quotes from different lenders.
Home Equity Line of Credit (HELOC) Rates for 2023
MoneyGeek listed equity rates, fees, APR ranges, repayment terms and other vital details about HELOC lenders in New Jersey. Note that rates and other information in the table below may change in the following months. We will regularly update this table with the most recent data.
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 | |
4.65% to 9.99% | $35,000 to $300,000 | 620 | 10 to 30 years | None | 1 to 2 weeks | |
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 New Jersey
MoneyGeek always puts your financial situation first. Based on your profile, we rounded up the best HELOC lenders in New Jersey to help you choose the perfect one for your financial needs and goals.
Our research shows that very few lenders offer HELOCs in New Jersey. Those who do offer such loans are mostly national banks. If a national bank rejects your loan application, we recommend checking with a local credit union.
Best Overall HELOC Lender in New Jersey: Bank of America
- Bank of America
An introductory APR of 1.99% for the first six months, then a minimum variable APR of 4.35%.
- 6.740% for 6 months, then 9.550%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
on Bank of America Website
Best HELOC Lender for Good Credit in New Jersey: U.S. Bank
- U.S. Bank
U.S. Bank allows you to apply for a HELOC by visiting a branch, calling the bank's representative or filling out a form online.
- 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
on U.S. Bank Website
Best HELOC Lender for Bad Credit in New Jersey: Figure
- Figure
Figure offers fast funding, disbursing the funds in as few as five days.
- 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
on Figure Website
Best HELOC Lender for Competitive Rates in New Jersey: PenFed
- PenFed Credit Union
PenFed 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
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
In terms of interest rates, monthly payments, repayment terms and disbursements of funds, a home equity line of credit (HELOC) and a home equity loan (HELOAN) are strikingly different.
A home equity loan allows you to borrow against the equity of your home. Its fixed interest rates and monthly payments do not change over the life of the loan. Borrowers receive HELOAN funds as a single lump sum.
On the other hand, a home equity line of credit is a credit line secured by the equity in your home and works like a credit card. With a HELOC, borrowers may be able to withdraw funds as necessary. HELOC rates are usually variable.
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
Most lenders in New Jersey allow you to apply online for a home equity line of credit. This makes the entire process more accessible and convenient. Typically, borrowers only fill out basic information and wait for approval. The following steps are necessary when applying for a HELOC.
Determine how much you need
MoneyGeek recommends having an idea of your financial situation and how much funding you may need. This is because a HELOC is suitable mainly for borrowers who know what they'll spend the funds on. HELOCs can help finance considerable expenses, including home renovations, education costs, business expenses and debt consolidation.
Assess your financial standing
Evaluate your current financial situation to determine if you can repay your HELOC loan. That includes checking your income and credit score to see if it satisfies a lender's requirements. Most HELOC lenders require a high credit score from the borrower.
Shop around and compare lenders
Before making a decision, you should shop around and compare quotes from different lenders. You should also compare their rates, fees, APR ranges and other essential offerings. Doing so will help you find the best option based on your needs.
Apply
After choosing your preferred lender, it is time to apply for a HELOC loan. It’s usually possible to do it online. Your lender will ask you to submit information about your income and personal assets. You may also have to provide some verification documents.
Use funds wisely
Once you receive funds, staying within your means would help you avoid further debt. You should also consider the fees the lender will be charging. Track your expenses to know how much you will have to pay back.
Frequently Asked Questions About HELOCs
Finding the right HELOC lender in New Jersey and applying for a loan might confuse some borrowers. MoneyGeek researched the following frequently asked questions to help you understand how a HELOC works in the state.
sources
- Bank of America. "Home Equity." Accessed June 21, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 21, 2022.
- Figure. "Get Cash Using Your Equity." Accessed June 21, 2022.
- PenFed Credit Union. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 21, 2022.