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.
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.
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.
- LenderAPRLoan AmountMin. Credit Score RequirementRepayment TermsAnnual FeesPre-Approval Time
3.75% to 18%
$25,000 to $1,000,000
660
10-year draw period
and 20-year repayment periodNone
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 periodNot 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
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.
- HELOCHome Equity Loan
Interest Rate
Adjustable interest rate,
but fixed-rate options are availableFixed interest rate
Monthly Payment
Changes depending on
the amount of money borrowedFixed 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 interestRepayment starts as soon as
the money is given to the borrowerFund 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.
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.
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.
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.
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.
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.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 7, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
- PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.