The Best HELOC Rates and Lenders in Tennessee

A home equity line of credit or HELOC is a loan borrowers take out using the value of their home as collateral. HELOCs work like credit cards since borrowers draw the funds as needed, up to a specified limit. You can use the funds to cover various expenses, including medical bills, debt consolidation, education and home renovations.

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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

  • 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 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.


    • 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 Tennessee: U.S. Bank


  • U.S. Bank

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


    • 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 Tennessee: Figure


  • Figure

    Figure features an extended repayment period of 30 years.


    • 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 Tennessee: PenFed


  • PenFed Credit Union

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


    • 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

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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