Updated: November 16, 2024
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The best HELOC lender in Rhode Island is Bank Rhode Island with a MoneyGeek score of 96 out of 100, followed by Webster Bank scoring 95 out of 100.
The average HELOC limit in Rhode Island is $130,001. How much you can borrow depends on your home's 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 Rhode Island, updated weekly to assist you.
The average HELOC balance in Rhode Island for the third quarter of 2023 is $43,978, according to Experian. This data highlights the importance of understanding and managing your HELOC effectively.
Calculating your HELOC payments is key to managing this type of debt. Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR, and loan terms. The full amortization schedule will show 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) have gained popularity in Rhode Island due to their flexibility and the control they offer over borrowing amounts and repayment timelines. This financial tool allows homeowners to access funds as needed, which can be particularly useful for managing various expenses.
Here's a closer look at where you can use a HELOC effectively.
Home improvements or renovations
A HELOC is ideal for home improvements due to its flexibility. Costs aren't final, allowing adjustments as projects evolve. This adaptability makes it a smart choice for enhancing your Rhode Island home.
Consolidating high-interest debt
With average 2023 consumer debt in Rhode Island at $100,960, using a HELOC for debt consolidation can streamline payments and lower interest rates, easing financial burdens.
Funding education expenses
HELOCs offer better rates for education expenses than other debts. They can cover tuition, books, and housing, providing a flexible solution for financing education in Rhode Island.
Investment properties
Using a HELOC for investment properties can yield returns. It's vital to shop for the best HELOC lenders for investment property to secure favorable rates and terms, enhancing your investment strategy.
Understanding the steps to apply for a HELOC in Rhode Island can simplify the process and make it more manageable. We've broken down this journey into six clear steps below.
Start by reviewing your current financial situation, including your credit score, debt-to-income ratio, and home equity. In Rhode Island, the average credit score is 722 based on Experian data. A higher score can improve your chances of HELOC approval, making it crucial to understand where you stand.
Comparing rates in Rhode Island can help you secure the best deal. Look into a lender's features, such as repayment terms, fees, and the option for a fixed-rate HELOC. This comprehensive approach ensures you choose a lender that aligns with your financial goals and needs.
Gathering 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. Being prepared can help you avoid delays and make the process smoother.
You can submit your HELOC application online or in-person if your lender has a branch. Ensure all information is accurate and complete to prevent delays. Double-check for errors or omissions before submission to keep the process moving efficiently.
Some lenders may require a home appraisal to assess your home's current market value. A home appraisal involves a professional evaluation of your property's worth, which can impact your HELOC terms. Understanding this process can help you prepare for any potential outcomes.
The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and potentially paying closing costs. Some lenders may cover part of these costs, so it's worth inquiring about this option.
The average HELOC limit in Rhode Island for the third quarter of 2023 is $130,001, according to Experian. The amount you can borrow with a HELOC is generally linked to the equity you have in your home. More equity often means a higher potential credit limit.
Check out the table below to see the range of credit lines offered by Rhode Island lenders in our database.
| Bank Rhode Island | From $25,000 |
| Bank of America | $15,000 to $1,000,000 |
| Berkshire Bank | From $17,500 |
| HarborOne Bank | $30,000 to $750,000 |
| The Washington Trust Company of Westerly | $25,000 to $1,000,000 |
| Webster Bank, N.A. | $10,000 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.
Bank Rhode Island is the best HELOC lender in Rhode Island with a MoneyGeek score of 96 out of 100. It excels in customer service, reputation and transparency, and has an efficient application process.
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 lenders that offer flexible terms, lower fees and are willing to work with borrowers with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender in Rhode Island.
Common fees associated with HELOCs 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 Rhode Island 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.
