Updated: December 21, 2024
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U.S. Bank is the best home equity line of credit (HELOC) lender in Arizona, with a MoneyGeek score of 96 out of 100. UMB Bank is the runner-up, scoring 95 out of 100.
The average HELOC limit in Arizona is $124,667. How much you can borrow depends on your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help you find lenders that meet your needs. MoneyGeek compiled the best HELOC rates in Arizona, updated weekly to assist you.
The average HELOC balance in Arizona for the third quarter of 2023 was $47,247, according to Experian. Calculating your HELOC payments helps you manage this type of debt effectively and plan for any adjustments 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 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 popular in Arizona because they offer flexibility and control over line amounts and repayment timelines. Here's a list of where you can use a HELOC.
A HELOC is ideal for home improvements, offering flexibility as costs change. It lets you finance projects without finalizing costs upfront, making it a smart choice for ongoing renovations.
The average 2023 consumer debt in Arizona was $115,963. Using a HELOC for debt consolidation can streamline payments and potentially lower interest rates.
Using a HELOC for education expenses is better than other types of debt. It can cover tuition, books and fees, offering a flexible and often lower-interest option for funding education.
A HELOC provides funding flexibility for investment properties. When seeking the best HELOC lenders for investment property, consider interest rates, terms and lender reputation to maximize your earning potential.
Understanding the steps to apply for a HELOC in Arizona can help you confidently navigate the process. We've simplified this journey into six steps below.
Evaluate your credit score, debt-to-income ratio and home equity before applying for a HELOC. The average credit score in Arizona was 713, based on Experian data for the third quarter of 2023. A score like this can enhance your chances of approval.
Explore different rates to find the best HELOC deal. Consider also the lender's features, such as repayment terms, fees and a fixed-rate HELOC option.
Preparing the necessary documents for a HELOC application can streamline the process. Commonly required documents include proof of income, recent tax returns and information about your mortgage and home value.
Submit your HELOC application online or in person if your lender has a physical branch. Check for errors or omissions in your application to avoid delays.
Some lenders may require an appraisal to determine your property's current market value. A home appraisal involves a professional assessment of your property's worth, which can affect the amount you can borrow through a HELOC.
A HELOC approval process can take two to six weeks. Once approved, you'll proceed to the closing process, which may involve signing documents and paying closing costs. Some lenders might cover some of these costs.
The average HELOC limit in Arizona for the third quarter of 2023 was $124,667, according to Experian. The maximum amount you can borrow is often linked to the equity you have in your home. The more equity you have, the higher your potential credit limit.
Check out the table below to see the range of credit lines disclosed and offered by Arizona lenders in our database. The lenders included are only those that disclosed their line amount range.
| Bank of America | $15,000 to $1,000,000 |
| PNC Bank | $10,000 to $1,000,000 |
| U.S. Bank | $25,000 to $750,000 |
| Umpqua Bank | $5,000 to $1,000,000 |
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.
U.S. Bank is the best HELOC lender in Arizona, with a MoneyGeek score of 96 out of 100. It excels in customer service and education, reputation and transparency, and application process and approval.
When looking for the best HELOC lenders for bad credit, consider those with flexible credit requirements, competitive rates and transparent terms.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing 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. We allocated scores based on including or excluding certain desirable features in various critical categories.
Our analysis, completed in December 2024, considered different banks and credit unions in Arizona 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.
