Updated: December 21, 2024
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Bank of America is the best home equity line of credit (HELOC) lender in Connecticut, with a MoneyGeek score of 96 out of 100. Manufacturers and Traders Trust Company is the runner-up, scoring 94 out of 100.
The average HELOC limit in Connecticut is $138,914. How much you can borrow often 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 Connecticut and updated them weekly to assist you.
The average HELOC balance in Connecticut for the third quarter of 2023 was $45,193, according to Experian. Calculating your HELOC payments helps you manage this 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 Connecticut because they offer flexible borrowing options and control over line amounts and repayment timelines. Here's how you can use a HELOC to meet your financial needs.
A HELOC is perfect for home improvements, providing flexibility as costs change. It allows you to fund projects without final costs, making it a smart choice for renovations.
The average 2023 consumer debt in Connecticut was $110,034. Using a HELOC for debt consolidation can simplify payments and reduce interest rates.
A HELOC is better for covering education expenses than other debts. It can pay for tuition, books and supplies, providing a flexible funding option.
Using a HELOC for investment properties offers financial leverage. Shop around for the best HELOC lenders for investment property to secure favorable rates and terms.
Understanding the steps to apply for a HELOC in Connecticut can make the process smoother and more manageable. Below are six steps to guide you.
Check your credit score, which can influence your approval chances. The average credit score in Connecticut is 726, 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 choosing 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.
A HELOC approval process can take 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 Connecticut was $138,914 for the third quarter of 2023, according to Experian. The maximum HELOC amount you can borrow is typically tied to your home equity. The more equity you have, the higher your potential credit limit can be.
Check out the table below for the range of credit lines offered by Connecticut lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| HSBC Bank USA | Up to $500,000 |
| KeyBank | $10,000 to $500,000 |
| Manufacturers and Traders Trust Company | $15,000 to $1,000,000 |
| NBT Bank | $10,000 to $500,000 |
| TD Bank | From $25,000 |
| Webster Bank, N.A. | $10,000 to $500,000 |
When choosing a lender for a HELOC, a local bank or credit union may not charge you as many fees as an online lender or mortgage broker (if they charge you any fees at all). Usually you just need to pay for the appraisal fee, which can be anywhere from $150 to $500. Although an online lender may advertise a better rate, if it’s charging thousands of dollars in fees, it may not be the best financial decision to take the perceived lower rate.
Bank of America is the best HELOC lender in Connecticut, with a MoneyGeek score of 96 out of 100. It offers excellent customer service and education, competitive interest rates, an efficient application process and quick approval.
When looking for the best HELOC lenders for bad credit, consider flexible eligibility criteria, willingness to work with low credit scores and competitive interest rates.
When choosing a HELOC lender, consider interest rates, fees, borrowing limits, repayment terms and lender reputation.
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 Connecticut 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.
