Updated: November 16, 2024
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Shore United Bank is the best home equity line of credit (HELOC) lender in Delaware, with a MoneyGeek score of 95 out of 100. The runner-up is Bank of America, scoring 94 out of 100.
The average HELOC limit in Delaware is $114,321. How much you can borrow often depends on factors like home 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 Delaware, updated weekly to assist you.
HELOC balances in Delaware averaged $41,769 in the third quarter of 2023, according to Experian. Calculating your HELOC payments helps manage this type of debt effectively so you can 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 Delaware due to their flexibility and the control they offer over borrowing amounts and repayment timelines. Here's a list of where you can use a HELOC.
Home Improvements or Renovations
Using a HELOC for home improvements is ideal as it allows flexibility with costs that aren't final. It can increase your home's value, making it a smart financial move.
Consolidating High-Interest Debt
The average 2023 consumer debt in Delaware was $106,317. Using a HELOC for debt consolidation can simplify payments by merging multiple debts into one, potentially lowering interest rates.
Funding Education
A HELOC is better than other debts for covering education expenses — such as tuition, books and fees — because it offers lower rates and flexible repayment.
Investment Properties
Using a HELOC for investment properties can yield returns. 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 Delaware is essential for a smooth financial journey. Here’s a breakdown of the process in six simple steps to guide you.
Check your credit score, which can influence your approval chances. The average credit score in Delaware is 715, 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 value, 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 Delaware for the third quarter of 2023 was $114,321, according to Experian. The maximum amount you can borrow is generally 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 Delaware lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| Manufacturers and Traders Trust Company | $15,000 to $1,000,000 |
| PNC Bank | $10,000 to $1,000,000 |
| TD Bank | From $25,000 |
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.
Shore United Bank is the best HELOC lender in Delaware, with a MoneyGeek score of 95 out of 100. It excels in customer service, is credible and transparent, and offers competitive interest rates.
When looking for the best HELOC lenders for bad credit, consider factors like flexible terms, lower fees and willingness to work with lower credit scores.
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 draw period for HELOCs usually lasts 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 Delaware 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.
