Best HELOC Loans and Rates of 2025
Updated: February 5, 2025
Advertising & Editorial Disclosure
In our research, MoneyGeek assessed each HELOC lender using a rubric that measured APR ranges, annual fees and affordability, among other things, to guide homeowners to the top choices.
Our analysis, completed in March 2024, evaluates banks, lenders and financial companies that partner with federally insured institutions across the United States. Our approach includes entities offering the most competitive rates, catering to a broad spectrum of homeowners seeking the best HELOC options.
Top HELOC Lenders With Competitive Rates
- Aven
- 7.99% to 15.49%APR Range
- 620Minimum Credit Score
- Up to $250,000Loan Amount Range
- Unlimited draw period; 5 to 10-year repayment period for cash out;Repayment Terms
- NoneAnnual Fees
Aven's HELOC, with APRs from 7.99% to 15.49% for borrowers with a minimum credit score of 620, is a standout choice for homeowners. Aven offers a credit card backed by your home's equity, providing a nifty 2% unlimited cashback on purchases and a 0.25% rate cut for autopay, without origination, annual fees or prepayment penalties. Its product is a hybrid HELOC that functions similarly to a credit card but is reported as a HELOC to credit bureaus. Drawbacks include a maximum line limit of $250,000 and a one-time 2.5% fee for direct cash out to a bank. The card usually arrives in 10 business days. Unlike some lenders, Aven doesn't offer hardship assistance, which could be a concern during financial bumps.
Pros
- Credit card backed by home equity
- Unlimited 2% cashback on purchases
- No origination, annual or prepayment fees
Cons
- Limited line of $250,000
- 2.5% cash-out fee
- Card takes 10 days to arrive
- PNC Bank
- 8.22% to 14.5%APR Range
- UndisclosedMinimum Credit Score
- $10,000 to $1,000,000Loan Amount Range
- Undisclosed draw period; 5-30 year repayment periodRepayment Terms
- $50Annual Fees
PNC Bank is a standout for homeowners seeking a flexible HELOC with competitive rates from 8.22% to 14.5%. They allow customers to switch from variable to fixed rates and offer a 0.25% rate reduction for autopay from a PNC account. Borrowers benefit from fee reimbursements including valuation and property search, have the opportunity to borrow up to $1 million and get support during financial hardships. The intuitive online tracker streamlines the application process. However, a $50 annual fee applies and borrowers in California and New York must pay origination fees. Some information, such as minimum credit scores and detailed repayment terms, is not disclosed upfront.
Pros
- Offers variable/fixed rate switching
- Autopay rate reduction available
- Up to $1 million borrowing limit
Cons
- Annual fee of $50 applies
- Origination fee in certain states
- Lacks transparency on key terms
- TD Bank
- 8.34% to 12.69%APR Range
- UndisclosedMinimum Credit Score
- Starting at $25,000Loan Amount Range
- UndisclosedRepayment Terms
- $50Annual Fees
TD Bank offers HELOCs with APRs ranging from 8.34% to 12.69%. It's a solid choice, granting a fixed rate option and a 0.25% rate discount for those with a TD bank checking account. These features can lead to stable payments and potential savings. Nevertheless, TD Bank limits its HELOC availability to 16 states and keeps some pivotal details under wraps like minimum credit score. Minimum borrowing starts at $25,000, coupled with a $50 annual fee. These factors might limit options or slightly increase the cost for some borrowers.
Pros
- Fixed-rate options available
- Rate discounts with TD checking account
- Early closure penalties limited to first 2 years
Cons
- Minimum loan amount is $25,000
- Charges a $50 annual fee
- Only available in 16 states
What’s a Good HELOC Rate?
| HELOC (10 year) | 6.71% | 6.96% |
| HELOC (15 year) | 6.71% | 6.96% |
| HELOC (20 year) | 6.71% | 6.96% |
Factors Affecting HELOC Rates
Borrower creditworthiness
Your credit score, debt-to-income (DTI) ratio and home equity play a crucial role in determining your HELOC rates. A stronger financial standing can secure lower rates.
Interest rate policies
The Prime Rate and Federal Funds Rate, set by banks and the Federal Reserve, respectively, are closely linked and have a direct impact on HELOC rates. Changes in these can lead to corresponding shifts in HELOC interest rates.
Economic indicators
Key indicators such as inflation rates and employment figures influence the overall economy's health, affecting the rates lenders charge for HELOCs.
Market demand
The level of demand for loans, including HELOCs, can influence interest rates. Higher loan demand may increase rates, while lower demand can make rates more favorable for borrowers.
Global economic events
International events that shake the global economy can also affect HELOC rates in the U.S. as lenders react to changes in global financial stability and market conditions.
COMPARISON SHOPPING
When you're ready to take the next step and begin comparing the best HELOC lenders, you'll make the most of this experience and get the biggest bang for your buck by engaging with lenders when your financial profile is at its strongest. For HELOC borrowers, if your credit report and score are strong, your debts low and manageable, and you've established significant equity in your home, you'll be better set up to have lenders compete for business, thus helping you secure the best rate and lowest fees you can. — Timothy Manni, Mortgage and Real Estate Consultant
Best HELOC Rates and Lenders by State
State | Average HELOC APR |
|---|---|
6.0% | |
6.04% | |
5.94% | |
5.82% | |
5.80% | |
5.92% | |
5.99% |
Frequently Asked Questions About the Best HELOC Loans and Rates
What is a good HELOC rate?
A reasonable HELOC rate will depend on how strong your credit score is, whether you have low debt, the amount of equity you have in your home and more. The national average HELOC APR is 6.64%. Be sure to compare rates and fees to get the best rate you can.
Can HELOC rates be negotiated?
Yes, lenders might adjust rates or fees to secure your business, especially if you present competitive offers from other institutions.
How often do HELOC rates change?
HELOC rates fluctuate every month, often linked to the Prime Rate, which adjusts according to the Federal Reserve's interest rate determinations.
What happens if I can't pay my HELOC?
The lender may initiate foreclosure to recover the borrowed amount. It's important to communicate with your lender early if you're facing financial difficulties.
Can I switch from a variable rate to a fixed rate on my HELOC?
Some lenders might allow you to switch from variable rates to fixed-rate HELOCs during the loan term. However, this is an exception rather than a standard practice. HELOCs are usually variable-rate products.
Can I refinance my HELOC to get a better rate?
Yes, you can refinance a HELOC to get a better rate, especially if your credit score has improved and market rates have dropped since you first secured it.
Are there any fees associated with a HELOC?
HELOCs typically come with various fees, including application, appraisal and, in some cases, annual fees. Understanding the HELOC closing costs is also essential to assess the total cost of the loan.
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.