You may finance home improvements, consolidate debt, pay school fees and medical bills and more with a HELOC loan. A HELOC is perfect for creditworthy homeowners who have significant home equity.
According to MoneyGeek's analysis, home equity line of credit (HELOC) rates in Ohio range from 0.99% to 18%, and Bank of America is the top HELOC lender overall. Prior to applying for a HELOC, it is important to compare quotes from multiple lenders in order to get the best rate.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below provides a summary of home equity line of credit interest rates and related lender data. This can help you find the right option for your needs.
The data is current as of May 2022. MoneyGeek updates the data periodically since the rates and other information are subject to change over time.
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 Ohio
MoneyGeek is committed to assisting Ohio borrowers in finding the best home equity line of credit lenders. You may only find a few lenders offering HELOC loans, and those that do tend to be national banks that cater to clients with good credit scores.
MoneyGeek recommends that if a national lender turns down your HELOC application, you should check with your local credit unions to find alternatives.
Best Overall HELOC Lender in Ohio: Bank of America
- Bank of America
This lender is perfect for borrowers who need larger fund amounts and better discounts.
- 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 Ohio: U.S. Bank
- U.S. Bank
U.S. Bank provides HELOCs with convenient access to funds.
- 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 Ohio: Figure
- Figure
For borrowers in need of faster HELOCs with longer repayment terms, Figure is a top option.
- 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 Ohio: PenFed
- PenFed Credit Union
PenFed offers HELOCs with competitive rates and the lowest introductory APR.
- 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
Home equity loans and home equity lines of credit (HELOCs) sound alike, but they are two distinct financial products.
Home equity loans come with fixed interest rates and repayment terms. The money is given to borrowers in one lump payment by the bank.
A HELOC functions like a credit card. During the draw period, borrowers can withdraw funds from the available credit and repay the amount through the repayment period. Most lenders generally require borrowers to only pay the interest during the draw period.
More details about the differences between these products are shared 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 home equity line of credit (HELOC) in Ohio is fairly easy. Most lenders enable applicants to submit basic information online and await approval. Below, MoneyGeek discusses the steps to apply for a HELOC.
Determine how much you need
Note that a home equity line of credit (HELOC) isn't for everyone. MoneyGeek recommends it to Ohio homeowners who have a good handle on their finances and know exactly how much funds they need. You should consider using a HELOC to finance significant expenses like investments, education and debt consolidation.
Assess your financial standing
You should also assess your current financial status. In order to evaluate your ability to repay the loan, most lenders set a minimum credit score requirement. Before applying for a HELOC, you might be able to lower your interest rate by taking a few simple steps to improve your credit score.
Shop around and compare lenders
Researching lenders and comparing what they offer is a good idea. It's the simplest approach to finding the best offer for your individual circumstances and demands. A home equity line of credit calculator is available on certain lender websites to help you estimate your monthly payments. You may avoid paying extra fees and take advantage of cheap rates if you choose the right HELOC lender.
Apply
In most cases, you can apply for a HELOC online. You can save time by being prepared with the information you'll need to submit the application. Documentation, such as bank statements, mortgage statements and proof of income, may be required.
Use funds wisely
Be mindful of the payback terms and additional costs once you begin withdrawing cash from your HELOC. While budgeting your monthly spending, keep note of how much you need to pay while your HELOC is open.
Frequently Asked Questions About HELOCs
You might be uncertain about how to go about getting a home equity line of credit (HELOC) in Ohio. MoneyGeek has compiled a list of frequently asked questions about HELOCs in Ohio.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
- Bank of America. "Home Equity Line of Credit Application." Accessed June 7, 2022.
- Bank of America. "Learn About Home Equity." Accessed June 20, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 7, 2022.
- Figure. "Homeowners, We're Here for You." Accessed June 13, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
- PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.