Updated: November 16, 2024
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The best home equity line of credit (HELOC) lender in New Jersey is Manufacturers and Traders Trust Company with a MoneyGeek score of 97 out of 100, followed by Truist Bank with a score of 96 out of 100.
The average HELOC limit in New Jersey is $148,665. How much you can borrow often depends on your home's equity, mortgage balance and credit score.
Comparing rates can help you find suitable lenders. MoneyGeek compiled the best HELOC rates in New Jersey, updated weekly to assist you.
The average HELOC balance in New Jersey for the third quarter of 2023 was $52,028, according to Experian. Understanding your HELOC payments is key to managing this debt effectively.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule shows how much of your payments go toward interest and principal over time.
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.
Draw Period Payment
Repayment Period Payment
YEAR
Home equity lines of credit (HELOCs) are popular in New Jersey due to their flexibility and the control they provide over borrowing amounts and repayment timelines. They allow homeowners to access funds as needed rather than in a lump sum. Here are some common ways to use a HELOC to meet your financial needs.
Home Improvements or Renovations
A HELOC is great for home improvements, providing flexibility as costs change. It's perfect for projects with uncertain expenses, allowing you to adjust your budget as needed.
Consolidating High-Interest Debt
The average 2023 consumer debt in New Jersey was $111,172. Using a HELOC for debt consolidation simplifies payments and reduces interest.
Funding Education
A HELOC can fund education expenses like tuition and books, often at better rates than other loans. It's a smart choice for managing educational costs efficiently.
Investment Properties
Using a HELOC for investment properties can yield returns. Shop around to find the best HELOC lenders for investment property to secure favorable rates and terms.
Understanding the steps to apply for a HELOC in New Jersey can help you navigate the process confidently. We've outlined this journey into six clear steps below.
Check your credit score, debt-to-income ratio and home equity. In New Jersey, the average credit score is 725, based on Experian data for the third quarter of 2023. A score like this can improve your chances of HELOC approval.
Comparing HELOC rates can help you secure the best deal. Also, consider repayment terms, fees and the option to apply for a fixed-rate HELOC.
Preparing the necessary documents for a HELOC can streamline your application process. Commonly required documents include proof of income, recent tax returns, and mortgage and home value information.
When submitting your HELOC application, you can often choose between online and in-person options if your lender has a physical branch. Double-check for errors or omissions in your application to avoid any potential delay.
Some lenders may require an appraisal to determine your home's current market value. An appraisal involves a professional assessment of your property's worth and ensures that the loan amount aligns with the property's value.
After submitting your application, the approval process can take two to six weeks. Once approved, you'll go through the closing process, which may involve signing documents and paying closing costs. Some lenders might offer to cover part of your closing costs.
The average HELOC limit in New Jersey was $148,665, according to Experian data for the third quarter of 2023. The maximum amount you can borrow with a HELOC is typically linked to your home equity. The more equity you have, the higher your potential credit limit could be.
Check out the table below for the range of credit lines offered by New Jersey lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| HSBC Bank USA | Up to $500,000 |
| Manufacturers and Traders Trust Company | $15,000 to $1,000,000 |
| PNC Bank | $10,000 to $1,000,000 |
| TD Bank | From $25,000 |
| Truist Bank | Up to $500,000 |
| Valley National Bank | Up to $1,000,000 |
When choosing a lender for a HELOC, a local bank or credit union may not charge you as many fees as an online lender or mortgage broker (if they charge you any fees at all). Usually you just need to pay for the appraisal fee, which can be anywhere from $150 to $500. Although an online lender may advertise a better rate, if it’s charging thousands of dollars in fees, it may not be the best financial decision to take the perceived lower rate.
Manufacturers and Traders Trust Company is the best HELOC lender in New Jersey, with a MoneyGeek score of 97 out of 100. It excels in customer service and education, is reputable and transparent, and offers competitive interest rates.
When looking for the best HELOC lenders for bad credit, consider those with flexible eligibility criteria, lower credit score requirements and willingness to work with borrowers with less-than-perfect credit.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender.
Common fees associated with HELOCs in New Jersey include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs lasts 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. We allocated scores based on the inclusion or exclusion of certain desirable features in various critical categories.
We completed our analysis in October 2024 and considered different banks and credit unions in New Jersey from S&P Global's SNL Depository Rates dataset.
About Zachary Romeo, CBCA
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.
