A HELOC can pay for healthcare expenses, home renovations, tuition and debt consolidation. Homeowners need to meet the lender’s requirements and have substantial home equity.

According to Moneyeek’s analysis, the best overall home equity line of credit provider in Tennessee is Bank of America, although the best option may vary depending on your financial goals.

While looking for a HELOC in Tennessee, shopping around for the best rates and terms is essential.

Home Equity Line of Credit (HELOC) Rates for 2023

The table below summarizes interest rates and other vital details about Tennessee HELOC lenders. The information is based on MoneyGeek’s research as of May 2022.

Lender rates and fees change constantly. MoneyGeek will update the information on an ongoing basis.

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

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 Tennessee

MoneyGeek’s mission is to provide consumers with the most accurate information about home equity line of credit options to facilitate better decision-making.

Most of the HELOC lenders in Tennessee are national banks. MoneyGeek recommends checking with your local credit unions if a national lender denies your application.

Best Overall HELOC Lender in Tennessee: Bank of America


  • Bank of America

    Bank of America offers interest rate discounts of up to 1.5% on initial withdrawals.


    • 9.55%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

    Bank of America

Best HELOC Lender for Good Credit in Tennessee: U.S. Bank


  • U.S. Bank

    Offers a fixed-rate APR option for borrowers with good to excellent credit.


    • Not specifiedAPR Range
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time

    U.S. Bank

Best HELOC Lender for Bad Credit in Tennessee: Figure


  • Figure

    Figure features an extended repayment period of 30 years.


    • 8.25%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time

    Figure

Best HELOC Lender for Competitive Rates in Tennessee: PenFed


  • PenFed Credit Union

    PenFed Credit Union offers interest-only payments before the repayment period.


    • Not specifiedAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • Not SpecifiedPre-Approval Time

    PenFed Credit Union

HELOC vs. Home Equity Loans

While it’s easy to confuse a home equity line of credit with a home equity loan, the two are different.

Home equity loans or HELOANs feature fixed interest rates and repayment terms. Lenders issue HELOANs in a lump sum based on the value of your home. A home equity loan is ideal for homeowners seeking a loan option with fixed repayment terms.

Meanwhile, a home equity line of credit features variable interest rates and repayment periods. HELOCs work the same way as credit cards since borrowers withdraw funds during the draw period, up to a maximum limit specified by the lender.

The following table illustrates the difference between HELOCs and HELOANs.

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 allow you to complete your HELOC application online in a few steps, while others require you to call the lender or visit their office. You will typically need to provide basic information, such as your personal and contact details, to get approved. Here are some steps to guide you through the application process.

1

Determine how much you need

Create a budget so you apply with a clear understanding of how much you need. HELOCs are ideal for funding large expenses, including debt consolidation, medical bills and home improvement. If you need funds for a small project, consider alternative financing options.

2

Assess your financial standing

After determining how much you need to borrow, review your financial situation. Check how the repayment amount will affect your financial stability. You should also determine whether you meet the lender’s credit score and income requirements.

3

Shop around and compare lenders

Lenders offer HELOCs at different rates and repayment terms. To find the right option for your needs, take the time to shop around. Compare APRs, income, credit score and other requirements before deciding.

4

Apply

Once you are happy with your preferred lender, complete the application and submit it online, in person or by phone. Ensure you have the necessary information, including verified documents like mortgage statements, before starting the application process, as this will save time.

5

Use funds wisely

Once you receive the funds, keep track of your expenses and repayment dates. Limit the funds to their intended purpose to avoid getting into more debt.

Frequently Asked Questions About HELOCs

HELOCs help you to cover large and unexpected costs over time. MoneyGeek responded to some commonly asked questions about HELOCs in Tennessee.

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