A home equity line of credit is secured by the equity of your home and can be a flexible way to cover major expenses such as education costs. HELOCs may also be a good way to consolidate your debt at lower interest rates.

If you are a homeowner in North Carolina, you can access a HELOC at rates ranging from 0.99% to 18%. Overall, MoneyGeek found that Bank of America offers the best HELOC in North Carolina. However, it is important to shop around and compare home equity line of credit rates to find the best lender for your needs.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit (HELOC) Rates for 2023

To help you compare HELOC lenders in North Carolina, MoneyGeek compiled an overview of home equity line of credit rates and other pertinent features for different lenders in the table below.

MoneyGeek does its best to stay up to date with current information, and the data in this table was updated in May 2022. However, rates and other features may change over time.

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

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 North Carolina

At MoneyGeek, we prioritize your needs as the consumer and make recommendations to help you find the best home equity line of credit lender in North Carolina.

HELOC loans are mostly offered by national banks, but you may also check with your local credit union in the event that you are denied a HELOC loan by the national lenders.

Best Overall HELOC Lender in North Carolina: Bank of America


  • Bank of America

    Low introductory APR and no annual fees.

    • 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
    Bank of America

Best HELOC Lender for Good Credit in North Carolina: U.S. Bank


  • U.S. Bank

    Fixed-rate APR option for borrowers with good to excellent credit.

    • Not specifiedAPR 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

Best HELOC Lender for Bad Credit in North Carolina: Figure


  • Figure

    Extended repayment terms of up to 30 years.

    • 8.25%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

Best HELOC Lender for Competitive Rates in North Carolina: PenFed


  • PenFed Credit Union

    Low introductory APR for qualified borrowers.

    • 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
    PenFed Credit Union

HELOC vs. Home Equity Loans

HELOCs and home equity loans both allow you to borrow against the equity of your home, but there are key differences between these two types of loans.

  • A home equity loan typically has a fixed interest rate, while HELOC loans have variable APRs that can change depending on the market.
  • With a home equity loan, you have a fixed repayment schedule over a defined period. With a HELOC, you only need to make the minimum payment every month until the draw period is complete.
  • A home equity loan is given to the borrower as a lump sum, whereas a HELOC acts like a credit card where the borrower can borrow as needed up to a specific amount.

You can learn more about how HELOCs and home equity loans differ 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

If you need a home equity line of credit in North Carolina, you can apply online since most lenders allow you to submit your details through their website. You will be required to provide personal information and any other pertinent financial statements needed by the lender. Once you submit your application online, the lender will review your application and get back to you.

It is important to follow the following steps when applying for a HELOC.

1

Determine how much you need

HELOC lenders offer flexible loan limits, but it is important to first figure out how much money you actually need. This will make it easy to borrow an amount that suits the intended purpose, whether it's for home renovation, debt consolidation or any other expense.

2

Assess your financial standing

A HELOC uses your home as collateral, so you stand to lose it if you fail to make the payments as required. This means it’s important to consider the financial implications of the loan on your finances and whether your debt-to-income ratio allows you to take on further debt.

3

Shop around and compare lenders

Home equity line of credit rates can vary from one lender to the next, so it is always prudent to compare rates and other features before settling on a lender. Some lenders will also charge fees like origination and closing fees, which can drive the cost of your loan even higher.

4

Apply

Most HELOC lenders accept applications online. You may be required to attach documents for verification, so go through the lender's requirements to ensure that you submit your application with all the required information and documentation.

5

Use funds wisely

Once you receive your funds, use them for the intended purpose and keep up with the payment schedule. While HELOCs can be a convenient and low-interest way to access money for large expenses, having your home as collateral means you can lose your home if you are unable to repay your HELOC.

Frequently Asked Questions About HELOCs

You can learn more about home equity line of credit rates in North Carolina by learning the answers to some frequently asked questions.

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