A HELOC can be used to finance significant expenses, including home renovations, debt consolidation, college education, medical bills and emergency costs. If you have home equity and good credit, a HELOC could be a good option for you.
Before applying for a HELOC, make sure to shop around and compare lenders so you can determine the best one for your needs. MoneyGeek found that current rates range from 0.99% to 18%, and the best overall lender in Wisconsin is Bank of America.
Home Equity Line of Credit (HELOC) Rates for 2023
When considering a HELOC, it’s vital to compare HELOC rates and lenders so that you choose the best option.
The table below shows an overview of equity rates and pertinent lender details as of May 2022. Note that rates and other features may change over time, but we do our best to stay up to date with the most current information.
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 | None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.99% special | $25,000 to $1,000,000 | Not specified | 10-year draw period, | Not specified | Not specified | |
3.65% to 8.80% | $15,000 to $750,000 | 730 | 10-year draw 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 | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw 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, | $50 | Not specified | |
Starting at 3.34% | Starting at $25,000 | 740 | Not specified | $50 | Not specified | |
3.49% for 6 months | Starting at $5,000 | Not specified | 15-year draw period | None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period, | None | Not specified |
MoneyGeek’s Picks for Best HELOC Lenders in Wisconsin
At MoneyGeek, we want to help you choose the best home equity line of credit lender for your particular situation. This is because we care about consumers and want to help them be successful with their finances.
Keep in mind that not many lenders offer HELOC loans, and those that do are mostly national banks that cater to borrowers with good to excellent credit scores.
We recommend checking with your local credit unions if a national lender denies your application.
Best Overall HELOC Lender in Wisconsin: Bank of America
- Bank of America
Bank of America is ideal for borrowers who want a special introductory APR offer.
- 6.740% for 6 months, then 9.550%APR 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 Wisconsin: U.S. Bank
- U.S. Bank
Borrowers with good credit scores can take advantage of U.S. Bank’s features.
- 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 Wisconsin: Figure
- Figure
Figure is an excellent option for homeowners with bad credit scores.
- 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 Wisconsin: PenFed
- PenFed Credit Union
PenFed is ideal for qualified borrowers who want competitive rates.
- 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
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
Both HELOANs (home equity loans) and HELOCs allow you to borrow against the equity of your home, but that’s where the similarities end.
A home equity loan is a lump sum given to a borrower all at once. It usually has a fixed repayment plan, interest rates and monthly payments. This option is ideal for borrowers who know how much they need and what they’ll use the money for.
Meanwhile, a home equity line of credit is a revolving line of credit that you can draw from as often as needed, up to a certain amount. It generally has a variable interest rate, subject to change based on economic trends.
To help you choose between a HELOAN and HELOC, MoneyGeek breaks down their differences in the table below.
HELOC | Home Equity Loan | |
|---|---|---|
Interest Rate | Adjustable interest rate, | Fixed interest rate |
Monthly Payment | Changes depending on | Fixed monthly payments |
Repayment Terms | During the draw period, borrowers pay | Repayment starts as soon as |
Fund Disbursements | Line of credit | Lump sum delivery |
How to Apply for a HELOC
Applying for a HELOC in Wisconsin is easy since it can usually be done online. Plus, the application process will only require you to submit basic information and wait for approval. MoneyGeek outlined the steps that you can take when submitting a HELOC application.
Determine how much you need
Before applying for a HELOC, make sure you know your desired credit line and what you’ll use it for. The most common reasons why people take out HELOCs include home renovations, debt consolidation, education costs and medical bills.
Assess your financial standing
Take a look at your current financial situation and decide whether a HELOC is a good financial decision. Check the factors that may affect your chances of getting a HELOC, such as your credit score, income and current loan-to-value ratio. By evaluating your financial standing, you can determine whether you have the means to repay what you owe.
Shop around and compare lenders
It’s important to research HELOC lenders and compare offerings. This way, you can narrow down your options and choose one that’s perfect for your needs and situation. Make sure to look into each lender’s loan amount ranges, interest rates and repayment terms. Also, keep an eye out for fees.
Apply
It’s usually possible to apply for a HELOC online. Gather all the documents that your lender may require and make sure that the information you provide is accurate. By doing so, you increase your chances of getting a HELOC approval.
Use funds wisely
Once you receive your line of credit, take note of how much you’re borrowing. It’s best to be careful with credit as you can lose your house if you fail to keep up with payments.
Frequently Asked Questions About HELOCs
Understanding how a home equity line of credit works can be confusing for first-time borrowers. MoneyGeek answered some frequently asked questions to help you learn more about HELOCs in Wisconsin.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- Bank of America. "Home Equity Assumptions." 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. "Homeowners, We're Here for You." Accessed June 13, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
- PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.