A home equity line of credit helps you finance large and unexpected expenses, and most lenders don’t restrict how you can use the funds.

While looking for the best HELOC for your needs, shopping around to secure an option with the best terms is essential. Overall, Bank of America offers the best HELOC in Texas due to its friendly rates and discounts. However, your best lender will depend on various factors, including your credit score.

Home Equity Line of Credit (HELOC) Rates for 2023

Comparing rates and terms across lenders can help secure the best HELOC option for your financial goals.

The following table provides an overview of home equity line of credit rates and other lender information based on MoneyGeek’s analysis as of May 2022. As lender rates fluctuate, we will keep you informed with regular updates to this table.

Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time

3.75% to 18%

$25,000 to $1,000,000


10-year draw period
and 20-year repayment period



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


10-year draw period,
unspecified repayment period


Not specified

Starting at 3.99%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period


Not specified

Starting at 4.64%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period


24 hours

Starting at 3.50%

$15,000 to $400,000


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


Not specified

Starting at 3.34%

Starting at $25,000


Not specified


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


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


Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Texas

MoneyGeek determined the best HELOC lenders in Texas to help consumers quickly find the perfect option for their needs.

Typically, not many lenders provide HELOCs, and most of the companies that do are often national banks. To qualify, borrowers need to have good credit scores.

If you submit your HELOC application to one of the national lenders and it gets rejected, find out why you were not approved and seek to remedy that issue before applying again. Additionally, check whether your local credit unions offer HELOCs.

Best Overall HELOC Lender in Texas: Bank of America

  • Bank of America

    Bank of America has an introductory APR of 1.99% for the first six months.

    • 7.49% (introductory rate) then 9.90%APR Range
    • UndisclosedMinimum Credit Score
    • Generally $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • UndisclosedPre-Approval Time

    Bank of America

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

  • U.S. Bank

    U.S. Bank customers receive a $750,000 maximum limit.

    • 8.95% to 12.70%APR Range
    • 660Minimum Credit Score
    • $15,000 to $750,000 ($1 million in California)Loan Amount Range
    • 10-year draw period; up to 30 years repayment periodsRepayment Terms
    • Up to $75Annual Fees
    • UndisclosedPre-Approval Time

    U.S. Bank

Best HELOC Lender for Bad Credit in Texas: Figure

  • Figure

    Offers comprehensive online customer support and 24-hour pre-approval.

    • 6.10% to 14.74%APR Range
    • 640 (680 for investment properties or second homes)Minimum Credit Score
    • $20,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time


Best HELOC Lender for Competitive Rates in Texas: PenFed

  • PenFed Credit Union

    PenFed Credit Union provides an attractive introductory APR of 0.99%.

    • Starting at 8.625%APR Range
    • 680Minimum Credit Score
    • $25,000 to $500,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • UndisclosedPre-Approval Time

    PenFed Credit Union

HELOC vs. Home Equity Loans

Home equity loans and HELOCs offer easy ways to finance major or unexpected expenses using the value of your home as collateral. Before determining which of the two suits your needs, you should understand their differences.

Home equity loans or HELOANs offer borrowers a lump sum. HELOANs feature fixed interest rates and repayment amounts for the duration of the loan. They may be ideal for borrowers who need a loan with predictable repayment terms.

Meanwhile, HELOCs offer revolving credit the same way credit cards do. They feature variable interest rates and repayment periods. Borrowers can withdraw funds as often as required, provided they do not exceed the lender’s limits. A home equity line of credit loan is ideal for homeowners who need more flexibility around the repayment terms.

Home Equity Loan

Interest Rate

Adjustable interest rate,
but fixed-rate options are available

Fixed interest rate

Monthly Payment

Changes depending on
the amount borrowed and interest rate

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

Applying for a home equity line of credit is easy. Most lenders allow you to submit your application online and await approval. MoneyGeek recommends taking the following steps when applying for a HELOC.


Determine how much you need

Before submitting your HELOC application, you must understand how much you need and have a plan for how you will use the funds. Most homeowners use the funds to finance home renovations, education, medical bills and debt consolidation.


Assess your financial standing

Review your financial situation and determine whether you can meet your preferred lender’s minimum requirements. For instance, you may need to check your income, loan-to-value ratio and credit score, as these will determine your rates.


Shop around and compare lenders

Once you are sure of the credit line amount you need, compare HELOC lenders to find the best option. Check the rates, repayment terms, discounts and requirements.



Most HELOC lenders allow you to apply online. However, some may ask you to call or apply in person. You will need to provide details like your personal information, proof of income and assets owned.


Use funds wisely

Once you receive the funds, use them for their intended purpose. Always keep in mind that if you fail to make repayments, you may lose your home.

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When it comes to taking out a loan that uses your home as collateral, such as a home equity loan or HELOC, you can't go wrong using the borrowed funds on repairs or renovations designed to increase the value of your home and your standard of living. — Timothy Manni, Mortgage and Real Estate Consultant

Frequently Asked Questions About HELOCs

What is a home equity line of credit? Understanding how HELOCs work may be challenging for new borrowers. MoneyGeek responded to frequently asked questions to ensure you choose the best HELOC for your financial goals.

About Christopher Boston

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Christopher Boston is a Senior Manager of Content Strategy and SEO at MoneyGeek. For over half a decade, they have crafted hundreds of articles spanning the higher education, mortgage and personal loan industries. Christopher is passionate about using their skills and experience to create quality content that helps people save and spend their earnings efficiently.