The Best HELOC Rates and Lenders in Vermont

A home equity line of credit (HELOC) allows you to get a credit line based on your home’s equity value. Like a credit card, you can withdraw funds up to a pre-approved amount at any time and repay the sum with a variable interest rate. Your HELOC can be used for all kinds of personal expenses, including home improvements, debt consolidation and large purchases.

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Getting a HELOC means having access to cash that you can use for various expenses. You can use funds for home renovation projects, special occasions, investments and much more. However, since you’re putting your house as collateral to get the credit line, HELOCs are ideal for financially responsible homeowners with significant home equity who can reliably make their payments.

Based on MoneyGeek’s research, home equity line of credit rates in Vermont range from 0.99% to 18%. Moreover, our team found that Bank of America is the best HELOC lender in the state. If you’re looking for a HELOC in Vermont, we recommend shopping around and comparing offers from different companies to get the best deals available.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit (HELOC) Rates for 2023

The table below gives an overview of interest rates, repayment terms, credit requirements and other important details about HELOC lenders in Vermont. We collected the information here in May 2022, and rates and features may change over time. That said, we’ll do our best to ensure the information here remains updated regularly.

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

  • PenFed Credit Union

    3.75% to 18%

    $25,000 to $1,000,000

    660

    10-year draw period
    and 20-year repayment period

    None

    N/A

  • PNC Bank

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

  • Bank of America

    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

  • U.S. Bank

    3.65% to 8.80%

    $15,000 to $750,000

    730

    10-year draw period,
    unspecified repayment period

    $90

    Not specified

  • Discover

    4.65% to 9.99%

    $35,000 to $300,000

    620

    10 to 30 years

    None

    1 to 2 weeks

  • Flagstar

    Starting at 3.99%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period

    $75

    Not specified

  • SunTrust/Truist

    Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period

    None

    24 hours

  • Figure

    Starting at 3.50%

    $15,000 to $400,000

    620

    5 to 30 years

    3% to 4.99%

    24 hours

  • Citizens Bank

    Starting at Prime - 0.50%

    Starting at $17,500

    Not specified

    10-year draw period,
    15-year repayment period

    $50

    Not specified

  • TD Bank

    Starting at 3.34%

    Starting at $25,000

    740

    Not specified

    $50

    Not specified

  • Connexus Credit Union

    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

  • Regions Bank

    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 Vermont

MoneyGeek’s goal is to help you find the best HELOC lender that fits your needs and profile. Nonetheless, be mindful that, aside from national banks, there aren’t many lenders offering home equity lines of credit. In case your HELOC application gets denied by a national lender, we recommend checking the availability of a HELOC from your local credit union.

Best Overall HELOC Lender in Vermont: Bank of America


  • Bank of America

    Enjoy six months of 1.99% APR with a Bank of America HELOC.

    • 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 Vermont: U.S. Bank


  • U.S. Bank

    U.S. Bank’s HELOC features no application fees or closing costs.

    • 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 Vermont: Figure


  • Figure

    Figure offers HELOCs with low interest rates and flexible repayment terms.

    • 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 Vermont: PenFed


  • PenFed Credit Union

    PenFed’s HELOC features a 0.99% introductory APR for six months.

    • 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

Both home equity loans and home equity lines of credit (HELOCs) use your home as collateral in order to borrow money. However, the two are different financial products.

With home equity loans, you can borrow lump-sum cash based on your house’s equity value (its current value minus your mortgage balance). This is similar to personal loans, as home equity loans have fixed interest rates and set monthly payments.

On the other hand, HELOCs allow you to use your home’s equity value to gain a line of credit from a lender. You can get funds from your line at any time, up to a pre-approved amount, during the draw period. HELOCs act like credit cards, as they feature variable interest rates with no fixed repayment terms.

The table below details the differences between a home equity loan and a HELOC.

  • 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

It’s relatively simple to apply for a HELOC, as most lenders allow you to view offers and fill out forms online. HELOC applications are more straightforward than unsecured loans since you’re putting something down as collateral — in this case, your house. Most of the time, you only need to provide your personal information and wait for the lender’s approval.

1

Determine how much you need

While a HELOC comes with relatively low interest rates, they can be risky, as getting one involves putting your house down as collateral. HELOCs are ideal for financially responsible people who know exactly how much they need to borrow. They are recommended for productive expenses like home renovations, which increase your house’s value.

2

Assess your financial standing

Study your financial situation before applying for a HELOC. Lenders will assess your creditworthiness, so it’s a good idea to have a healthy debt-to-credit ratio and credit score. Additionally, you may want to make sure that you’re actually capable of paying for the loan. If you don’t have a steady source of income, putting up your home as collateral for a line of credit may lead you into a worse financial situation.

3

Shop around and compare lenders

Once you’ve decided that getting a HELOC is the best option available to you, the next step is to look for lenders and compare their offers. This is important in order to get the best rates for your profile. Waiting for a day or two before deciding on a company is also a good idea, so you can better judge if a lender fits your needs.

4

Apply

Most companies allow online HELOC applications. It’s best to gather all the information you might need before starting the process. You may also want to prepare documents that will prove your creditworthiness, like payslips or bank statements. Lastly, answer all questions truthfully to avoid complications with your lender.

5

Use funds wisely

Once your credit line is funded, you may now withdraw your funds. HELOCs are best used for activities that build your wealth, such as home renovations or investment products. Your HELOC interest payments are also often tax-deductible. Whatever happens, keep in mind that defaulting on your loan may result in losing your home, so approach HELOCs with plenty of caution.

Frequently Asked Questions About HELOCs

Opening a home equity line of credit in Vermont is relatively easy, and most companies allow online applications. MoneyGeek answered some commonly asked questions to help you better understand HELOCs.

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