Best HELOC Rates and Best HELOC Lenders in Tennessee (2024)

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Updated: July 26, 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.

A Summary of the Best HELOC Lenders in Tennessee

Best Overall: Lower

Best for Affordability: Aven

Best for Bad Credit: U.S. Bank

Best for Large Loan Amounts: Bank of America

Best for Debt Consolidation: PNC Bank

We evaluated each lender in our research against a rubric, including APR ranges, annual fees and affordability, among others.

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Our analysis was completed in July 2024 and includes lenders that do business in Tennessee.

15Lenders Analyzed

    Best HELOC Lender Overall

  • 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
    Lower

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.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:680 - 740
LTV Ratio:
LTV Ratio:80% or lower
HELOC (10 year)APR7.14%
HELOC (15 year)APR7.14%
HELOC (20 year)APR7.14%

Where does this data come from?

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.

HELOC Calculator
Discover borrowing capacity, interest rates, and make informed financial choices with confidence!
You may be eligible for a HELOC. Because you have an LTV at or below 85%, you may be approved for a home equity line of credit.
10 Years Payoff Scenario
$732/mo
Eligible to Borrow
$62,500
Loan-to-Value Ratio
80%
Note: Lenders set varying limits on the acceptable Loan-to-Value (LTV) ratio, depending on the property type (owner-occupied or investment). Typically, owner-occupied homes have a higher acceptable LTV, often capped at 85%.

    Best HELOC Lender for Affordability

  • 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
    Aven

How does MoneyGeek create this recommendation?


    Best HELOC Lender for Bad Credit

  • 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
    U.S. Bank

How does MoneyGeek recommend lenders for those with bad credit?


    Best HELOC Lender for Large Loans

  • 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
    Bank of America

How does MoneyGeek recommend lenders for large loan amounts?


    Best HELOC Lender for Debt Consolidation

  • 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
    PNC Bank

How does MoneyGeek recommend lenders 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.

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    Define Your HELOC Purpose

    Knowing why you need a HELOC guides you to the right lender in Tennessee. Using funds for renovations or education? Lenders offer terms based on usage. Identify your goal to match with a lender suited for your financial strategy.

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    Assess Lender Reputation

    The Better Business Bureau ratings and the Tennessee Department of Financial Institutions reviews reflect lender credibility. Cross-check both to ensure you’re choosing a reliable lender for your HELOC.

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    Rate and Fee Comparison

    Looking beyond rates is key. In Tennessee, compare lenders' fee structures, including HELOC closing costs. Lower fees can offset higher rates, so examine each offer comprehensively.

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    Gauge Community Standing

    A lender's local reputation is telling. Seek Tennessee lenders recognized with community awards — a sign of commitment to customer satisfaction. Word-of-mouth and local news can be insightful resources.

    loanReview icon

    Check Lender Flexibility

    Lenders that accommodate with interest-only payments or convert HELOCs with variable rates to a fixed-rate option show flexibility. Online prequalification streamlines the application, a plus for any homeowner.

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.

What's a good HELOC rate in Tennessee? What are the best HELOC rates in Nasvhille?
Which HELOC lender is best overall in Tennessee?
Can I still qualify for a HELOC in Tennessee if I have bad credit?
Which HELOC lender in Tennessee is best for large loans?
Can I use a HELOC to consolidate debt?
How can I ensure I find the right HELOC lender in Tennessee for me?

Sources

Better Business Bureau. "Get Consumer Help." Accessed July 9, 2024.

Experian. "What Is the Average Credit Score in the US?." Accessed July 9, 2024.

Tennessee Department of Financial Institutions. "Regulated Entities." Accessed July 9, 2024.

TransUnion. "Home Equity Trends Report Q3 2023." Accessed July 9, 2024.

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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