Updated: November 16, 2024
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Pentagon Federal Credit Union is the best home equity line of credit (HELOC) lender in Colorado, with a MoneyGeek score of 94 out of 100. Bank of America follows closely with a score of 94 out of 100.
The average HELOC limit in Colorado is $134,544. How much you can borrow often depends on factors like 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 Colorado, updated weekly to assist you.
The average HELOC balance in Colorado for the third quarter of 2023 was $52,232, according to Experian. Calculate your HELOC payments to effectively manage this type of debt and plan 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 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 among Colorado homeowners because they offer flexibility and control over borrowing and repayment. With a HELOC, you can decide how much to borrow and adjust your repayment timeline to suit your financial situation.
Here's a list of ways to use a HELOC.
Home Improvements or Renovations
A HELOC is great for home improvements, offering flexibility as costs change. It allows you to access funds as needed, ensuring your renovation projects can adapt to changing needs and unforeseen expenses.
Consolidating High-Interest Debt
The average 2023 consumer debt in Colorado was $154,481. Using a HELOC for debt consolidation can simplify finances by combining multiple debts into one payment, potentially reducing interest rates and monthly payments.
Funding Education
Using a HELOC for education expenses is often better than using other debts. It can pay for tuition, books and fees, offering lower interest rates and flexible repayment options than traditional student loans.
Investment Properties
A HELOC can finance investment properties, providing capital for down payments or renovations. Shopping around for the best HELOC lenders for investment property ensures you secure the best rate and favorable terms.
Understanding the steps to apply for a HELOC in Colorado can help you make informed financial decisions. Below, we break down the application process into six steps.
Check your credit score, which can influence your approval chances. The average credit score in Colorado is 731, based on Experian data for the third quarter of 2023. A higher score may improve your approval odds. Also, evaluate your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.
Comparing rates from different lenders can help you secure the best HELOC deal. Also, consider 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 an appraisal to determine your property's current market value. An appraisal involves a professional assessment of your home's worth, 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.
The average HELOC limit in Colorado for the third quarter of 2023 was $134,544, according to Experian. The maximum amount you can borrow with a HELOC is typically tied to the equity you have in your home. The more equity you have, the higher your potential credit limit.
Check out the table below for the range of credit lines offered by Colorado lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| KeyBank | $10,000 to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
| Pentagon Federal Credit Union | $25,000 to $500,000 |
Some lenders charge much higher fees than others when it comes to HELOCS. That’s why it’s recommended to shop around when applying for a HELOC. Some banks or credit unions will not charge you any fees at all, or you may just have to pay the appraisal fee.
Pentagon Federal Credit Union is the best HELOC lender in Colorado, with a MoneyGeek score of 94 out of 100. It stands out for customer service, reputation, transparency and competitive interest rates.
When looking for the best HELOC lenders for bad credit, consider lenders with flexible qualification criteria, reasonable interest rates and transparent fee structures.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender.
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. We allocated scores based on the inclusion or exclusion of certain desirable features in various critical categories.
We completed our analysis in October 2024 and considered different banks and credit unions in Colorado 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.
