The Best HELOC Rates and Lenders in Rhode Island

A home equity line of credit, or HELOC, is a revolving line of credit secured by your home equity. HELOCs are perfect for borrowers looking to consolidate debt or fund large expenses, such as a home renovation project or secondary education.

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A HELOC works like a credit card, allowing homeowners to access cash based on their home's equity and pay it back over time. It’s meant for homeowners who want an additional source of financing and a flexible payment plan for paying off debt or making big-ticket purchases.

HELOC offers several distinct advantages over traditional loans and other types of mortgages. The interest rate is usually much lower than what you’d pay with a standard fixed-rate loan, and repayment terms range from 5 to 30 years.

MoneyGeek’s data shows that Bank of America is the overall best HELOC lender in Rhode Island, although rates across all lenders range from 0.99% to 18%. Before choosing a HELOC lender, we recommend you shop around for rates and lenders that meet your needs.

Home Equity Line of Credit (HELOC) Rates for 2023

In the table below, we provided an overview of the major lenders’ rates, requirements, loan amounts and fees as of May 2022. Because lenders’ rates and terms frequently change over time, we regularly update our pages as new information becomes available.

When looking for a new home equity line of credit, it’s important to weigh your options since each lender has its own structure for its HELOC products.

  • 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 Rhode Island

MoneyGeek cares about consumers and wants to help them find the best HELOC lender for their financial needs. As such, we compiled a list of the top-rated institutions that offer HELOCs with competitive rates and terms.

HELOCs are mainly offered by national banks, which often have strict borrower requirements. If you aren’t eligible for a HELOC with a national bank, we recommend that you check with your local credit union.

Best Overall HELOC Lender in Rhode Island: Bank of America


  • Bank of America

    Bank of America provides a 1.99 % introductory APR for 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 Rhode Island: U.S. Bank


  • U.S. Bank

    You can apply for a HELOC with U.S. Bank over the phone, online or in person.


    • 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 Rhode Island: Figure


  • Figure

    Figure offers the best home equity line of credit for borrowers with low credit scores — those with a minimum credit score of 620 are eligible.


    • 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 Rhode Island: PenFed


  • PenFed Credit Union

    For the first six months, PenFed Credit Union offers a competitive introductory APR of 0.99% — the lowest among its competitors.


    • 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

It’s important to understand the differences between a home equity loan (HELOAN) and a home equity line of credit (HELOC) so you can choose the best one for you. While they both involve borrowing against your home, they serve different purposes.

HELOANs allow homeowners to borrow against the value of their homes. A home equity loan has a fixed interest rate and a fixed term for repayment. It’s given to the borrower as a lump sum. This type of loan is best for borrowers that are prone to overspending, as they don’t have access to a revolving line of credit.

Meanwhile, a HELOC functions similarly to a credit card in that a borrower may borrow up to a certain amount during the draw period and then must pay it back over time. With its variable interest rate, the borrower won’t pay a fixed monthly payment, but this may require better oversight of one’s spending.

  • 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

Most lenders accept online applications, making it easy to apply for a HELOC. Typically, you’ll submit everything online and wait for approval, but some lenders may require a follow-up phone call to verify certain documents.

To simplify the process for you, MoneyGeek listed the following steps that you should take before you apply for a HELOC:

1

Determine how much you need

Before applying for a home equity line of credit, you should evaluate your funding requirements. It’s important to accurately assess how much money you need to avoid borrowing extra cash. Simply having access to funds could lead to unnecessary spending that’s subject to interest. A home equity line of credit may be used for big purchases and expenses such as debt consolidation, home improvements and college tuition. For small expenses, it may be best to find an alternative funding source.

2

Assess your financial standing

Check your eligibility for a HELOC after determining how much money you need to borrow. Several criteria must be satisfied to qualify for a home equity line of credit, including good credit history and sufficient income. You should also evaluate your capacity to repay the HELOC. If you already find it difficult to repay existing debt, a HELOC may not be the best choice for you.

3

Shop around and compare lenders

After determining how much money you need and evaluating your financial situation, it’s time to search for a lender.

When selecting a lender, you should evaluate various factors, such as interest rates, fees (if any), repayment terms, maximum loan-to-value ratios, etc. It’s important to also check that you meet the lender’s requirements, including those for credit scores and income.

4

Apply

After finding a lender who meets your needs, it's time to fill out an application. Most lenders offer online applications, making it easy to apply for your HELOC. However, some allow you to apply over the phone or in person if you prefer to have a lender representative guide you through the process. For a home equity line of credit to be approved, you must provide documentation like pay stubs, bank statements, tax returns and other relevant documents.

5

Use funds wisely

Remember to use funds responsibly and to avoid needless spending. We recommend that you use your HELOC for significant expenses, such as paying off debts with high-interest rates, renovating your home or acquiring investment properties.

Frequently Asked Questions About HELOCs

First-time borrowers may find it difficult to choose the best home equity line of credit for their needs. MoneyGeek answered some of the most commonly asked questions below to help you better understand the topic.

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