Best HELOC Lenders in Michigan (December 2024)

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Key Takeaways

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The best home equity line of credit (HELOC) lender in Michigan is Bank of America with a MoneyGeek score of 96 out of 100, followed by Citizens Bank with a score of 94 out of 100.

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The average HELOC limit in Michigan is $89,310. How much you can borrow often depends on your home's equity, outstanding mortgage balance and credit score.

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Comparing rates can help you find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Michigan, updated weekly to assist you.

Overall Best HELOC Lender in Michigan

Company logo for Bank of America
Bank of America
MoneyGeek Score:
96/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR9.29%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Borrow up to $1 million
  • Accepts co-applicants
  • Provides rate discounts for autopay and Preferred Rewards members
CONS
  • Minimum line amount is $25,000 when applying online
  • Charges an early closure fee of $450
  • Does not disclose minimum HELOC requirements

Runner-Up for Best HELOC Lender in Michigan

Company logo for Citizens Bank
Citizens Bank
MoneyGeek Score:
94/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR8.00%
Draw Period10 years
Repayment Period15 years
Time to Receive FundsUndisclosed
PROS
  • Offers a 0.25% rate discount for automatic payments
  • Option to lock principal balance into a fixed rate
  • Accepts co-applicants
CONS
  • Charges an annual fee of $50
  • May charge a fee for locking in interest rate
  • Maximum repayment term is 15 years

Calculate Your Monthly Payment

The average HELOC balance in Michigan for the third quarter of 2023 is $31,912, according to Experian. Calculating your HELOC payments is key to managing this debt effectively and planning for any financial adjustments.

Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule provided will show how much of your payments go toward interest and principal over time.

Michigan HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

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Draw Period Payment

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Repayment Period Payment

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Credit Payoff Schedule for Home Equity Line

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Best HELOC Lender in Michigan for Affordability

Company logo for Flagstar Bank
Flagstar Bank
MoneyGeek Score:
93/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR11.24%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Provides a 0.25% autopay discount
  • Borrow up to $1 million
  • Allows interest-only payments during the draw period
CONS
  • Charges a $75 annual fee
  • Lines over $500,000 require Lender's Title Insurance
  • Pay closing costs if account closed within 36 months

Best HELOC Lender in Michigan for Service Quality

Company logo for PNC Bank
PNC Bank
MoneyGeek Score:
100/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR9.72%
Draw PeriodUndisclosed
Repayment Period5 to 30 years
Time to Receive FundsNext Day After Closing
PROS
  • Borrow up to $1 million
  • Provides a 0.25% interest rate discount for automatic payments
  • Allows you to switch between variable and fixed rates
CONS
  • Charges a $50 annual fee
  • Has a $100 fee each time you lock or unlock
  • Late fees apply

What You Can Use a HELOC for in Michigan

HELOCs are popular in Michigan due to their flexibility and the control they offer over line amounts and repayment timelines. This financial tool allows homeowners to access funds as needed, making it an appealing option for those seeking to manage their finances efficiently.

Here’s a look at where you can use a HELOC.

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    Home Improvements or Renovations

    A HELOC is ideal for home improvements, offering flexibility as costs change. It's a smart choice when project expenses aren't final, allowing you to adjust your budget as needed.

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    Consolidating High-Interest Debt

    With average 2023 consumer debt in Michigan at $77,903, using a HELOC for debt consolidation can simplify payments and lower interest rates, making financial management easier.

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    Funding Education Expenses

    A HELOC is a better option for education expenses than other loans. It can cover tuition, books and other costs, providing a flexible and cost-effective solution.

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    Investment Properties

    Using a HELOC for investment properties offers benefits like favorable terms. It's essential to shop around for the best HELOC lenders for investment property to secure the best rates.

How to Apply for a HELOC in Michigan

Understanding the steps to apply for a HELOC in Michigan can help you navigate the process smoothly. We have broken down this journey into six steps below.

  1. 1

    Review Your Financial Health

    Understanding your credit score, debt-to-income ratio, and home equity is essential for HELOC approval. In Michigan, the average credit score is 719 in the third quarter of 2023 based on Experian data. This score can improve your chances of approval, making it a good time to review your financial health.

  2. 2

    Compare Rates in Michigan

    Comparing rates in Michigan can help you secure the best HELOC deal. Consider lender features such as repayment terms, fees and the option for a fixed-rate HELOC. These factors can significantly impact your overall costs and repayment experience, so it's worth taking the time to evaluate different offers.

  3. 3

    Prepare Required Documentation

    Preparing the necessary documents in advance can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns and information on your mortgage and home value. Having these ready can help you avoid delays and ensure a smoother application process.

  4. 4

    Submit an Application

    Most lenders offer the convenience of online applications, but in-person submissions are also available if your lender has a branch. Ensure all information is accurate and complete to prevent delays. Double-check for any errors or omissions before submitting your application to expedite the process.

  5. 5

    Undergo a Home ppraisal

    Some lenders may require a home appraisal to assess your property's current market value. A home appraisal involves a professional evaluation of your home's condition and features, which helps determine its worth. This step is crucial for both the lender and borrower to understand the property's value.

  6. 6

    Wait for Approval and Closing

    The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to the closing stage, which involves signing documents and potentially paying closing costs. Some lenders may offer to cover part of these costs, so it's worth inquiring about any available options.

Know How Much You Can Borrow in Michigan

According to Experian, the average HELOC limit in Michigan for the third quarter of 2023 is $89,310. The maximum amount you can borrow through a HELOC is typically tied to the equity you have in your home. The more equity you have, the higher your potential credit limit.

Check out the table below to see the range of credit lines offered by Michigan lenders in our database. This will give you a better understanding of what you might expect when exploring HELOC options in the state.

Bank of America$15,000 to $1,000,000
Citizens BankFrom $17,500
Fifth Third Bank$10,000 to $500,000
Flagstar Bank$10,000 to $1,000,000
KeyBank$10,000 to $500,000
PNC Bank$10,000 to $1,000,000
Ask the experts:

How do lenders determine how much equity a homeowner can borrow against in a HELOC?

Credit & Mortgage Expert

Most lenders will allow you to take out up to 90% of your home's equity. For example, if your home is appraised at $400,000 and you owe $200,000 on your mortgage, you could potentially take out up to $160,000 on a HELOC if you meet the requirements of that lender.

FAQ: Best HELOC Lenders in Michigan

Who is the best HELOC lender in Michigan?

How to find the best HELOC lenders for bad credit in Michigan?

What factors should I consider when choosing a HELOC lender in Michigan?

What are common fees associated with HELOCs that I should compare in Michigan?

What is the typical draw period for HELOCs, and does it vary between lenders in Michigan?

How can I find a lender with flexible repayment options in Michigan?

MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.

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Our analysis was completed in December 2024 and considered different banks and credit unions in Michigan from S&P Global's SNL Depository Rates dataset.

101Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


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