The Best HELOC Rates and Lenders in New Mexico

A home equity line of credit, commonly referred to as a HELOC, is a credit line that you can use against the equity in your home. It typically has a credit limit and variable interest rates. Borrowers can use a HELOC to finance various expenses, including debt consolidation, home renovations and more.

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A HELOC generally is the ideal option for borrowers looking to fund various significant expenses, including large home renovation products, education costs, business expenses or any other emergency expense.

Our research shows that home equity line of credit rates in the state range from 0.99% to 18%, depending on the lender. According to our findings, Bank of America is the best overall lender for a HELOC in New Mexico, but a different provider may better suit your specific financial situation. We recommend shopping around and comparing rates from different lenders to find the best deal for your needs.

Home Equity Line of Credit (HELOC) Rates for 2023

To help you compare lenders, MoneyGeek listed the APR ranges, loan amounts, repayment terms, fees, credit score requirements and other essential details of different HELOC lenders in the table below.

This information was updated as of May 2022. However, since rates and other features change over time, MoneyGeek regularly revises its pages to help you access the most recent 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
    and 20-year repayment period

    None

    N/A

  • Not specified

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

  • 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

  • 3.65% to 8.80%

    $15,000 to $750,000

    730

    10-year draw period,
    unspecified repayment 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
    and 20-year repayment period

    $75

    Not specified

  • Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment 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,
    15-year repayment period

    $50

    Not specified

  • Starting at 3.34%

    Starting at $25,000

    740

    Not specified

    $50

    Not specified

  • 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

  • 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 New Mexico

At MoneyGeek, we strive to help consumers make sound financial decisions, including choosing the best HELOC lender for their financial needs. Our research shows that few lenders, aside from national banks, offer HELOC loans in New Mexico. Though national banks often have strict lender requirements, you may be eligible for a HELOC with your local credit union.

Best Overall HELOC Lender in New Mexico: Bank of America


  • Bank of America

    Bank of America offers a low introductory APR of 1.99% for the first 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

    on Bank of America Website

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


  • U.S. Bank

    Borrowers with good credit can qualify for a U.S. Bank HELOC by applying online, in person or over the phone.


    • 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 Mexico: Figure


  • Figure

    Figure provides fast funding, disbursing the funds in as few as five days, to borrowers with low credit scores.


    • 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 Mexico: PenFed


  • PenFed Credit Union

    PenFed Credit Union has 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

    on PenFed Credit Union Website

HELOC vs. Home Equity Loans

Although a home equity loan (HELOAN) and a HELOC both use your home as collateral, there are distinct differences between the two funding types in terms of interest rates, monthly payments, repayment terms and fund disbursement.

A HELOAN is disbursed as a single lump sum and has fixed interest rates and monthly payments. This type of loan is ideal for borrowers that have a history of overspending.

On the other hand, a HELOC is a revolving line of credit that usually has variable interest rates and a credit limit. A HELOC works similarly to a credit card and lets the borrowers withdraw funds as necessary.

We’ve included more information about the differences between HELOCs and HELOANs in the table below.

  • 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 loan is easy, as most lenders allow borrowers to submit online applications. Most of the time, you must fill out personal and financial information and then wait for the lender’s approval.

1

Determine how much you need

MoneyGeek recommends that borrowers understand their financial situation and needs before applying for a HELOC. It’s important to estimate how much you need, so that you can search for lenders that offer these credit limits. A HELOC loan can fund various significant expenses, including home renovations, debt consolidation, education costs, business expenses or any other emergency expense.

2

Assess your financial standing

Once you have evaluated your financial needs, you should look at your current income level and previous debts. This will help you understand your capacity to make monthly payments on your HELOC loan. It will also help you to consider your credit score, as most lenders require a high credit score for loan approval.

3

Shop around and compare lenders

Prior to applying for a HELOC, you should compare different lenders’ rates, fees and other essential features. This will help you find the best option for your needs and financial situation.

4

Apply

After choosing a lender, you can apply for a loan on their website. At this stage, the lender will likely require your personal and financial information. To save time, you should prepare all the necessary documents beforehand.

5

Use funds wisely

Once the lender disburses your funds, you can use them to finance your needs. It’s important that you keep track of your expenses and make timely payments to avoid defaulting on your HELOC, as this could potentially result in you losing your home.

Frequently Asked Questions About HELOCs

Finding the right lender and applying for a HELOC loan in New Mexico is often a confusing process. MoneyGeek researched the following frequently asked questions to help you understand how a HELOC loan works in the state.

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