The Best HELOC Rates and Lenders in Pennsylvania

A home equity line of credit (HELOC) is a revolving line of credit secured by your home equity. You can use a HELOC to finance major expenses like home renovations, education and medical bills. The amount you’re able to borrow is based on how much equity you have in your home, as well as your financial history.

Advertising & Editorial DisclosureLast Updated: 12/6/2022
Edited By     |  

A HELOC can be used for many purposes, including major home repairs and improvements, emergency cash needs and consolidation of existing debts. A HELOC also offers several distinct advantages over standard financing options, including lower interest rates and repayment terms ranging from 5 to 30 years.

In Pennsylvania, HELOC rates range from 0.99% to 18%, and Bank of America is the best overall HELOC lender. Before choosing a HELOC lender, it’s important to compare lenders to find the one that best fits your needs.

Home Equity Line of Credit (HELOC) Rates for 2023

In the table below, MoneyGeek provided an overview of different lenders’ rates, requirements, loan amounts, fees and other pertinent details so that you can find the right one for you. It’s important to note that this information was updated as of May 2022. Lenders' rates and terms frequently change, 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
    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
    4.350% 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 Pennsylvania

MoneyGeek’s priority is the consumer, so we’ve compiled a list of the best HELOC lenders for different borrower profiles to help you choose the best one for your situation.

Finding a lender with competitive rates and reasonable borrower requirements can be challenging because typically only national banks offer HELOC loans. If you don’t meet the requirements for a HELOC loan with a national bank, you should check with your local credit union.

Best Overall HELOC Lender in Pennsylvania: Bank of America


  • Bank of America

    Bank of America's HELOC has no application fee, no closing costs (up to $1,000,000) and no annual fee.


    • 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 Pennsylvania: U.S. Bank


  • U.S. Bank

    U.S. Bank offers flexible repayment options, including interest-only payments to those who qualify.


    • 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 Pennsylvania: Figure


  • Figure

    Best for borrowers with bad credit.


    • 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 Pennsylvania: PenFed


  • PenFed Credit Union

    PenFed Credit Union offers a competitive 0.99% introductory APR for your 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

Though they both use your home as collateral, a home equity line of credit is different from a home equity loan (HELOAN).

A HELOAN is given to the borrower as a lump sum. It has a fixed interest rate and a fixed repayment term, making it a good option for borrowers that want to pay the same amount each month.

On the other hand, a HELOC is an unsecured revolving line of credit based on your home’s value. A HELOC acts like a credit card, wherein a borrower can borrow up to a specific amount during the draw period. It has a variable interest rate, which is why the borrower isn’t locked into a fixed monthly payment.

MoneyGeek outlined additional differences between a HELOC and a HELOAN 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

It’s usually easy to apply for a HELOC because most lenders have online applications. Most lenders will also let you submit your information online and await the lender's approval, meaning you can complete your application when it’s convenient.

MoneyGeek recommends taking the following steps before you apply for a HELOC.

1

Determine how much you need

This is one of the most important steps before applying for a home equity line of credit. You want to ensure you are not borrowing more or less than you need. A home equity line of credit can be used for large purchases and expenses such as debt consolidation, renovations and college expenses. If you only need a small amount of money, you should look into alternative funding sources.

2

Assess your financial standing

Now that you know how much money you need to borrow, the next step is to see if you qualify for a HELOC. To qualify for a home equity line of credit, you must meet certain lender requirements, such as having a sufficient credit history and income. It’s also important to evaluate your capability to repay the loan. If you already have existing debt, taking on another loan may not be the best financial decision.

3

Shop around and compare lenders

Now that you have determined how much money you need and assessed your financial standing, it’s time to select the best lender for your needs.

You should consider several factors when choosing a lender, including interest rates, fees, repayment terms, loan-to-value ratio limits, etc. Considering all these factors will save you money on unnecessary costs in the long term.

4

Apply

After finding a lender that meets your needs, it’s time to apply. Typically, completing an online application is a fast and simple process. In order to get approved for a home equity line of credit, you’ll need to provide verifiable documentation such as pay stubs, bank statements, tax returns and W2 forms.

5

Use funds wisely

If you’re approved, you’ll receive a notification from your lender that your account has been activated. After which, you’ll be able to use your funds. Be mindful that failure to make payments could cause you to lose your home, so it’s important to properly manage your spending. It’s best to use these funds for large purchases like paying off high-interest debt, renovating your house or purchasing investment properties.

Frequently Asked Questions About HELOCs

MoneyGeek answered some frequently asked questions about home equity lines of credit to help you further understand the topic.

sources