Updated: November 23, 2024
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BMO BANK is the best HELOC lender in Illinois, with a MoneyGeek score of 96 out of 100. Bank of America follows with a MoneyGeek score of 94 out of 100.
The average HELOC limit in Illinois is $99,902. How much you can borrow depends on your home's equity, outstanding mortgage balance and credit score.
Comparing rates helps find suitable lenders. MoneyGeek compiled the best HELOC rates in Illinois, updated weekly, to assist you in your journey.
The average HELOC balance in Illinois during the third quarter of 2023 was $34,301, according to Experian. Understanding this figure can help you gauge your financial standing.
Calculating your HELOC payments is key to managing this debt effectively. Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule will show 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) have gained popularity in Illinois because they offer flexibility and control over borrowing and repayment. Homeowners appreciate the ability to manage their line amounts and repayment timelines according to their financial needs.
Below is a list of ways you can use a HELOC to your advantage.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as costs evolve. This allows homeowners to manage expenses efficiently, ensuring projects are completed without financial strain.
Consolidating high-interest debt
According to Experian data, the average 2023 consumer debt in Illinois was $89,523. A HELOC for debt consolidation can reduce interest rates and simplify payments.
Funding education expenses
Using a HELOC for education expenses offers better terms than other debts. It covers tuition, books and housing, providing a cost-effective solution for educational funding.
Investment properties
A HELOC can finance investment properties, offering potential returns. It's crucial to shop around for the best HELOC lenders for investment property to secure favorable rates and terms.
Understanding the steps to apply for a home equity line of credit (HELOC) in Illinois can make the process smoother and more manageable. Below, we've broken down the journey into six clear steps to help guide you.
Reviewing your current financial situation is essential before applying for a HELOC. Assess your credit score, debt-to-income ratio and home equity. The average credit score in Illinois was 720, based on Experian data for the third quarter of 2023. A score like this can improve your chances of HELOC approval.
Comparing rates in Illinois can help you secure the best HELOC deal. Look into a lender's features, such as repayment terms, fees and the option to apply for a fixed-rate HELOC. These factors can significantly impact the overall cost and flexibility of your loan.
Preparing the necessary documents can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns and information on your mortgage and home value. Having these ready can help ensure a smoother application process.
Most lenders offer the convenience of applying online, but you can also apply in person if your lender has a branch. Ensure your application is complete and free of errors or omissions to avoid delays in processing.
Some lenders may require a home appraisal to determine your home's current market value. A home appraisal involves a professional assessment of your property's worth, which can influence the amount you can borrow through a HELOC.
The approval process for a HELOC can take two to six weeks. Once approved, you'll go through the closing process, which may involve signing documents and paying closing costs. Some lenders might offer to cover part of these costs.
The average HELOC limit in Illinois for the third quarter of 2023 was $99,902, according to Experian. The maximum amount you can borrow with a HELOC is typically tied to the equity you have in your home. Greater equity can increase your potential credit limit.
Check out the table below to see the range of credit lines offered by Illinois lenders in our database that disclosed their line amount range.
| Bank of America | $15,000 to $1,000,000 |
| Fifth Third Bank | $10,000 to $500,000 |
| HSBC Bank USA | Up to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
| U.S. Bank | $25,000 to $750,000 |
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.
BMO BANK is the best HELOC lender in Illinois, with a MoneyGeek score of 96 out of 100. It excels in customer service, offers competitive interest rates and is transparent about its HELOC terms.
A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider factors like flexible terms, lower fees and lenders willing to work with lower credit scores.
When choosing a HELOC lender in Illinois, 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, though 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. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in October 2024 and considered different banks and credit unions in Illinois 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.
