Updated: December 21, 2024
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The best home equity line of credit (HELOC) lender in North Carolina is Regions Bank, with a MoneyGeek score of 94 out of 100, followed by Bank of America, with a MoneyGeek score of 94 out of 100.
The average HELOC limit in North Carolina is $99,208. How much you can borrow often depends on your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help you find lenders that suit your needs. MoneyGeek compiled the best HELOC rates in North Carolina, updated weekly to assist you.
The average HELOC balance in North Carolina for the third quarter of 2023 was $33,064, according to Experian. Calculating your HELOC payments is key to managing this debt and planning for any changes in your financial obligations.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule provided 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
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Home equity lines of credit (HELOCs) are a popular financial tool in North Carolina largely because they offer homeowners flexibility in accessing funds tied to their property's value. Here are some common ways you can use a HELOC to meet your financial needs.
A HELOC is ideal for home improvements, offering flexibility as costs may change. It allows you to finance renovations without finalizing costs upfront, making it a smart choice for dynamic projects.
The average 2023 consumer debt in North Carolina was $96,426. Using a HELOC for debt consolidation can simplify payments and reduce interest rates, helping manage multiple debts efficiently.
Using a HELOC for education expenses offers lower interest rates than other debts. It can cover tuition, books and housing, making it a practical choice for funding education.
A HELOC can finance investment properties, offering flexibility and potential tax benefits. Shop around to find the best HELOC lenders for investment properties and secure the best rates and favorable terms.
Understanding the steps to apply for a HELOC in North Carolina can help you confidently navigate the process. We've simplified this journey into six steps below.
Start by checking your credit score, which can influence your approval chances. The average credit score in North Carolina was 709 based on Experian data for the third quarter of 2023. A higher score may improve your chances of approval. Additionally, evaluate your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.
Comparing rates from different lenders in North Carolina can help you secure the best HELOC deal. Look beyond interest rates and consider other features such as repayment terms, fees and the option to apply for a fixed-rate HELOC to ensure you choose a lender that aligns with your financial needs and goals.
Preparing the necessary documents in advance can streamline your HELOC application process. Commonly required documents include proof of income, recent tax returns and mortgage and home value information.
When you're ready to apply for a HELOC, most lenders offer the convenience of online applications. You can apply in person if your lender has a physical branch. Ensure all information is accurate and complete to avoid errors or omissions that could delay the process.
Some lenders may require a home appraisal to determine your property's current market value. A home appraisal involves a professional assessment of your home's value, which helps the lender decide on the loan amount you qualify for.
The approval process for a HELOC can take anywhere from two to six weeks. Once approved, you'll proceed to the closing process, 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.
According to Experian, the average HELOC limit in North Carolina in the third quarter of 2023 was $99,208. The amount you can borrow with a HELOC is generally tied to the equity you have in your home, meaning 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 North Carolina lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| Fifth Third Bank | $10,000 to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
| Regions Bank | $10,000 to $500,000 |
As with any line of credit, the lender can increase or decrease the limit at any time for any reason. With a HELOC, if the value of your home drops significantly, the lender can choose to decrease your line or even freeze it, making it unusable until you pay it down to the amount that aligns with their guidelines.
Regions Bank is the best HELOC lender in North Carolina, with a MoneyGeek score of 94 out of 100. It excels in customer service, has an efficient application process and is transparent about its HELOC terms.
A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider factors such as flexible credit requirements, competitive interest rates and favorable repayment terms.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender in North Carolina.
Common fees associated with HELOCs include origination, annual, application and early closure fees.
The typical draw period for HELOCs is 10 years, but some lenders may offer more flexible options.
For flexible repayment 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. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in December 2024 and considered different banks and credit unions in North Carolina 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.
