Best HELOC Rates and Lenders in Tennessee (2024)
Updated: April 23, 2024
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The best home equity line of credit (HELOC) lender in Tennessee is Lower. It stands out for its competitive APR range from 8.75% to 13.5% and a loan amount range from $15,000 to $500,000. While it doesn't offer physical branches and operates online only, it accommodates a broad spectrum of borrowers with a minimum credit score requirement of 580.
MoneyGeek examined 15 lending options for homeowners looking for a HELOC in Tennessee. Remember, additional lenders operate in the state, but not all were included in this analysis. Local choices such as Piedmont Advantage Credit Union, TNConnect Credit Union and Lowland Credit Union also feature HELOC offerings with distinct advantages for Tennesseans.
- Lower
- 8.75% to 13.5%APR Range
- $15,000 to $500,000Loan Amount Range
- 580Minimum Credit Score
- 10-year draw period; undisclosed repayment period Repayment Terms
- NoneAnnual Fees
Lower is the top pick for a HELOC lender in Tennessee. With an APR range from 8.75% to 13.5%, Lower suits various budgets. Homeowners can borrow from $15,000 to $500,000, fitting both small and large projects. With a minimum credit score of 580, it offers an accessible financial tool for a majority, ensuring ease of use right from the online application process. Its standout features, like a lack of annual fees and an A+ BBB rating, bring added financial confidence to homeowners in Tennessee.
Pros
- No annual fee
- Credit scores from 580 accepted
- Personalized post-loan support
Cons
- No rate discounts offered
- No fixed-rate HELOC conversion
- Unclear repayment period length
Best HELOC Lender Overall
HELOC Rates in Tennessee by Credit Score
For Tennessee homeowners seeking a HELOC, your APR isn't just about credit scores or an 80% LTV ratio. Lenders set rates based on repayment terms, too. Review the table to see rate differences for varied parameters.
Selecting a HELOC lender in Tennessee isn't just about getting cash — it's about smart borrowing. Shopping for the best APR can lead to lower monthly payments and save you money over the loan's life. Different lenders offer varying APRs, which can significantly impact how much you pay back in the end. Taking time to compare rates can make your borrowing experience more manageable financially.
HELOC Calculator: Do You Qualify in Tennessee?
Based on a study by TransUnion, homeowners in Tennessee might find they can borrow more with a HELOC if their home's equity is high. The average credit score in the state is 705, as cited by Experian, which suggests a fair chance for HELOC approval.
Eligibility for a HELOC in Tennessee isn't just about equity and credit score; other factors play a role, too. Use the HELOC calculator to experiment with different values and better understand your potential eligibility. It's a handy tool that streamlines the search for the right HELOC lender.
- Aven
- 7.99% to 15.49%APR Range
- Up to $250,000Loan Amount Range
- 620Minimum Credit Score
- Unlimited draw period; 5 to 10-year repayment period for cash out;Repayment Terms
- NoneAnnual Fees
For homeowners in Tennessee looking to save money, Aven offers a compelling HELOC product. It presents a hybrid HELOC working like a credit card backed by your home's equity, while being reported as a HELOC on credit reports. With an APR range from 7.99% to 15.49%, no annual fees and a 0.25% discount for autopay, it supports cost efficiency for homeowners. These features ensure a more affordable HELOC option, making Aven a top choice for those prioritizing affordability in Tennessee.
Pros
- Earns you 2% unlimited cash back
- 0.25% rate reduction for autopay
- No origination or annual fees
Cons
- Line limit only up to $250,000
- One-time 2.5% fee for direct cash-outs
- Card delivery in 10 business days
Best HELOC Lender for Affordability
- U.S. Bank
- 8.95% to 13.1%APR Range
- $15,000 to $750,000Loan Amount Range
- 660Minimum Credit Score
- 10-year draw period; up to 20-year repayment periodRepayment Terms
- Up to $75Annual Fees
U.S. Bank is the top lender for Tennessee homeowners with bad credit seeking a HELOC. Even with a lower credit score, you can access funds using your home equity. U.S. Bank requires a minimum credit score of 660, within reach for those with less-than-perfect credit histories. With an APR range from 8.95% to 13.1% and a 0.5% discount for autopay enrollment, costs stay manageable. Homeowners can borrow between $15,000 and $750,000 over a flexible repayment period, up to 20 years after a 10-year draw period. U.S. Bank is accredited by the BBB, yet without a current rating.
Pros
- Allows for interest-only payments
- Offers a fixed-rate option
- No closing costs
Cons
- Closing must be done in person
- Charges an annual fee of $75
- No financial hardship assistance
Best HELOC Lender for Bad Credit
- Bank of America
- Starting at 9.82%APR Range
- $25,000 to $1,000,000Loan Amount Range
- UndisclosedMinimum Credit Score
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
Bank of America is the top HELOC lender in Tennessee for large loan amounts, with borrowing limits up to $1 million. Bank of America’s product helps by offering a long repayment period of up to 20 years after a 10-year draw period. Additionally, homeowners can benefit from the absence of annual fees, keeping costs down over the lifetime of the loan. With no application or closing costs, plus financial hardship assistance available, it stands as a steadfast option for significant financing needs.
Pros
- Offers competitive introductory rate
- No fees for application, annual or closing
- High maximum loan amount of up to $1M
Cons
- Closing must be in person
- Early closure fee of $450
- Online minimum loan of $25,000
Best HELOC Lender for Large Loans
- PNC Bank
- 8.22% to 14.5%APR Range
- $10,000 to $1,000,000Loan Amount Range
- UndisclosedMinimum Credit Score
- Undisclosed draw period; 5-30 year repayment periodRepayment Terms
- $50Annual Fees
PNC Bank is the top HELOC lender for debt consolidation in Tennessee. A HELOC can replace high-interest debt like credit card balances and car loans with a low-interest option. The best lender offers lower interest rates, fast access to funds and high loan limits. PNC Bank has a minimum APR of 8.22% and a maximum of 14.5%, which can be lower than many credit cards and auto loans. It provides access to funds within three days after closing and allows borrowing up to $1 million.
Pros
- Switches between variable and fixed rates
- 0.25% autopay rate reduction from PNC accounts
- Online document upload and application tracker
Cons
- Charges a $50 annual fee
- Does not disclose key information
- Charges for interest rate lock/unlock
Best HELOC Lender for Debt Consolidation
How to Choose a HELOC Lender in Tennessee
MoneyGeek has highlighted top HELOC lenders in Tennessee. Yet, finding the perfect fit requires knowing your needs. Below, discover strategies to streamline your search for a Tennessee-based HELOC lender tailored to your financial situation.
FAQ: HELOC Lenders and Rates in Tennessee
Choosing the right HELOC lender in Tennessee can streamline your borrowing experience while saving money. These frequently asked questions address the nuances of lender selection to help you understand your options and make informed decisions tailored to your financial landscape.
A competitive HELOC rate in Tennessee is around 6.71%. These rates generally apply to those with a loan-to-value ratio of 80% or less and a credit score in the range of 680 to 740. Be aware that individual rates can vary depending on a homeowner's creditworthiness and the lender selected.
Lower is recognized as the best overall HELOC lender in Tennessee. It stands out due to its competitive APR range from 8.75% to 13.5%, loan amount offerings from $15,000 to $500,000 and accommodating a minimum credit score of 580. These factors make it a significant choice for homeowners in Tennessee seeking flexible HELOC options.
Yes, you can still qualify for a HELOC in Tennessee with bad credit. An example is U.S. Bank, which offers HELOC options for credit scores as low as 660.
Bank of America is the top lender in Tennessee for large HELOC loans, offering amounts up to $1 million. Homeowners may need large loans for significant home renovation projects or to invest in real estate, which can be facilitated through home renovation financing.
Yes, using a HELOC for debt consolidation can be beneficial due to competitive APRs like PNC Bank's range of 8.22% to 14.5%. With the possibility of receiving funds within three days after closing and loan amounts up to $1 million, it can be a viable option to manage and pay down debt.
Finding the right HELOC lender in Tennessee requires clarity on your intended use for the HELOC and a thorough understanding of your financial situation. Different needs and priorities, such as seeking low rates, needing large loan amounts or requiring specific repayment terms, will influence which lender is the best match for you.