Updated: November 16, 2024
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The best home equity line of credit (HELOC) lender in Pennsylvania is Truist Bank with a MoneyGeek score of 95 out of 100, followed by Bank of America with a score of 94 out of 100.
The average HELOC limit in Pennsylvania is $101,581. How much you can borrow depends on your home equity, outstanding mortgage balance and credit score.
Comparing rates can help you find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Pennsylvania, updated weekly to assist you.
The average HELOC balance in Pennsylvania in the third quarter of 2023 was $37,055, 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. In addition, 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 Pennsylvania, 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.
Home improvements or renovations
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.
Consolidating high-interest debt
The average 2023 consumer debt in Pennsylvania was $85,047. Using a debt consolidation can simplify payments and reduce interest rates, helping manage multiple debts efficiently.
Education expenses
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.
Investment properties
A HELOC can finance investment properties, offering flexibility and potential tax benefits. Make sure to shop around to find the best HELOC lenders for investment property and secure the best rates and favorable terms.
Understanding the steps to apply for a HELOC in Pennsylvania can help you navigate the process with confidence. 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 Pennsylvania is 723, based on Experian data for the third quarter of 2023. 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 Pennsylvania 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. If your lender has a physical branch, you can also apply in person. 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 Pennsylvania for the third quarter of 2023 was $101,581. 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 California lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| KeyBank | $10,000 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 |
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.
Truist Bank is the best HELOC lender in Pennsylvania, with a MoneyGeek score of 95 out of 100. It excels in customer service, efficient application processes, and transparency.
When looking for the best HELOC lenders for bad credit, focus on lenders that offer flexible terms, consider alternative credit data and have experience working with borrowers with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when selecting a HELOC lender.
Common fees to compare include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs is 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. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in October 2024 and considered different banks and credit unions in Pennsylvania 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.
