Updated: November 16, 2024
Advertising & Editorial Disclosure
Truist Bank is the best home equity line of credit (HELOC) lender in Indiana, with a MoneyGeek score of 96 out of 100. The runner-up is BMO BANK, with a MoneyGeek score of 96 out of 100.
The average HELOC limit in Indiana is $79,948. 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 Indiana, updated weekly, to assist you.
The average HELOC balance in Indiana for the third quarter of 2023 was $28,524, according to Experian. It's crucial to calculate your HELOC payments to manage this debt effectively 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 provided shows how your payments are divided between 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
YEAR
Home equity lines of credit (HELOCs) are popular in Indiana due to their flexibility, allowing homeowners to control the amount they borrow and the repayment timeline. This flexibility makes them an attractive option for managing various financial needs.
Here, we explore how you can use a HELOC, helping you understand its potential applications.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as costs evolve. It's a smart choice when project expenses aren't final, allowing you to manage unexpected changes smoothly.
Consolidating high-interest debt
According to Experian data, the average 2023 consumer debt in Indiana was $79,349. A HELOC for debt consolidation can simplify finances by reducing multiple high-interest payments into one manageable plan.
Funding education expenses
Using a HELOC for education expenses is cost-effective compared to other debts. It can cover tuition, books and fees, providing a flexible solution for educational funding.
Investment properties
A HELOC can fund investment properties, offering financial leverage. Shopping around for the best HELOC lenders for investment property ensures you secure favorable rates and terms.
Understanding the steps to apply for a HELOC in Indiana is key to effectively navigating the financial landscape. We've simplified this journey into six clear steps below.
Reviewing your current financial situation is essential before applying for a HELOC. Check your credit score, debt-to-income ratio and home equity. The average credit score in Indiana was 713, based on Experian data from the third quarter of 2023. A higher score can improve your chances of approval.
Comparing rates in Indiana can help you secure the best HELOC deal. Look into lenders' other features, such as repayment terms, fees and the option to apply for a fixed-rate HELOC. Evaluating these aspects ensures you choose a lender that aligns with your financial needs.
Preparing the necessary documents in advance can streamline your HELOC application process. Commonly required documents include proof of income, recent tax returns and information about your mortgage and home value. Having these ready can expedite the approval process.
Most lenders offer the convenience of online applications, but you can also apply in person if your lender has a branch. Ensure all information is accurate and complete to avoid delays. Double-check for any errors or omissions before submission.
Some lenders may require a home appraisal to determine your home's current market value. This process 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 proceed to closing, which involves signing documents and potentially paying closing costs. Some lenders may offer to cover part of these costs, so inquire about this option.
The average HELOC limit in Indiana was $79,948 for the third quarter of 2023, according to Experian. The maximum amount you can borrow with a HELOC is usually tied to the equity you have in your home. Generally, the higher your equity, the higher your potential credit limit.
Check out the table below to see the range of credit lines offered by Indiana lenders in our database that have disclosed their line amount range.
| Fifth Third Bank | $10,000 to $500,000 |
| KeyBank | $10,000 to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
| Regions Bank | $10,000 to $500,000 |
| Truist Bank | Up to $500,000 |
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.
Truist Bank is the best HELOC lender in Indiana, with a MoneyGeek score of 96 out of 100. It excels in customer service and education, application process and approval, and reputation and transparency.
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 interest rates and a lender's willingness to work with borrowers with less-than-perfect credit.
When choosing a HELOC lender in Indiana, consider interest rates, fees, borrowing limits, repayment terms and lender reputation.
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. 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 Indiana 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.
