How you spend your HELOC funds depends on your financial needs. You can spend the loan on medical bills, home renovations, education costs and debt consolidation, among other things. To qualify for a HELOC, you must be a homeowner with considerable home equity.
Based on a MoneyGeek analysis, Bank of America is the best overall HELOC lender in South Dakota due to its low interest rates and discounts. However, the best lender may vary across different borrower profiles.
Comparing rates and other terms from different lenders will help you secure the best deal available in the state.
Home Equity Line of Credit (HELOC) Rates for 2023
The following table outlines various details about HELOC lenders, including their repayment terms and equity rates, as updated by MoneyGeek in May 2022.
Note that the home equity line of credit rates and other lender information keep varying, although MoneyGeek endeavors to update the table regularly to ensure borrowers find the most current data.
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 South Dakota
MoneyGeek cares about you, the consumer, and aims to help you secure the best home equity line of credit (HELOC) provider for your financial goals and current situation.
It’s important to note that apart from most national banks, a good number of lenders do not offer HELOC loans. If a national lender denies you a HELOC, MoneyGeek recommends that you check with your local credit union for other available options.
Best Overall HELOC Lender in South Dakota: Bank of America
- Bank of America
Low introductory APR for six months.
- 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 South Dakota: U.S. Bank
- U.S. Bank
Application by phone, online or in person at one of the bank branches.
- 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 South Dakota: Figure
- Figure
Figure requires a fair credit score of 620.
- 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 South Dakota: PenFed
- PenFed Credit Union
Low 0.99% introductory APR in 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
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
A home equity line of credit (HELOC) is quite different from a home equity loan (HELOAN), although both offer funding for major expenses within the home.
A home equity loan is granted in a lump sum against the value of your home. It features fixed interest rates and repayment terms, and is ideal for individuals who need financing with predictable repayment terms.
A home equity line of credit works the same as a credit card. Eligible homeowners withdraw funds up to a specific limit during the draw period as stipulated in the lender’s terms. Unlike HELOANs, HELOCs have variable interests; although, some lenders allow you to convert to a fixed-rate option. The table below outlines the difference between HELOCs and HELOANs in more detail.
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
Getting a HELOC is very easy since most lenders carry out the entire process online. All you need is to provide the required personal information and then wait for the lender to approve your application.
Determine how much you need
Before submitting your application for a HELOC, you need to budget well and determine the exact amount you need. Home equity line of credit loans are ideal for funding large expenses such as home improvement, education and debt consolidation. A HELOC may not be the best option if you need funding for small projects.
Assess your financial standing
Apart from determining how much you need, you should evaluate your financial situation. Will you be able to repay the loan? How financially stable are you? Check whether your income level and credit score meet the requirements of your ideal lender. Most companies use these factors to rate your eligibility to repay the loan.
Shop around and compare lenders
The best way to find an option with the best terms is by comparing offerings across lenders. Check out the APR, repayment periods, credit score, income requirements and other essential features. Choosing the right lender will ensure you do not pay additional fees as you take advantage of the low rates.
Apply
Most lenders allow you to submit a HELOC application online. However, some may require you to call or visit one of their offices. To save time, ensure you have all the requisite information before starting the application process. Some lenders may ask for verified documents such as proof of income and mortgage statements.
Use funds wisely
After receiving the funds, keep track of the repayment terms and your expenses. MoneyGeek recommends limiting the funds to the intended expense to avoid falling into further debt.
Frequently Asked Questions About HELOCs
A home equity line of credit (HELOC) can help you pay for unexpected and large expenses for your home. MoneyGeek answered some frequently asked questions about HELOCs to get you started.
sources
- Bank of America. "Home Equity Line of Credit (HELOC)." Accessed June 22, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 22, 2022.
- Figure. "Get a Home Equity Line of Credit Fast.." Accessed June 13, 2022.
- PenFed Credit Union. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 22, 2022.
- Internal Revenue Service. "Interest on Home Equity Loans Often Still Deductible Under New Law." Accessed June 22, 2022.