Best HELOC Lenders in Iowa (November 2024)

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Updated: November 16, 2024

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Key Takeaways

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The best home equity line of credit (HELOC) lender in Iowa is BMO Bank with a MoneyGeek score of 94 out of 100, followed by Regions Bank with the same score.

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The average HELOC limit in Iowa is $63,270. How much you can borrow depends on factors like home equity, mortgage balance, and credit score.

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Comparing rates can help you find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Iowa, updated weekly to assist you.

Overall Best HELOC Lender in Iowa

Company logo for BMO BANK
BMO BANK
MoneyGeek Score:
94/ of 100
Minimum Credit Score650
Average HELOC APR8.88%
Draw Period10 years
Repayment Period20 years
Time to Receive Funds3 Business Days
PROS
  • Offers a 0.25% rate discount for automatic payments
  • Provides a remote closing option for HELOC applications
  • Option to lock in your balance at a fixed rate
CONS
  • Charges a $75 annual fee
  • Charges a closing cost recoupment fee for accounts closed within 36 months
  • Locking in your rate costs $75 after closing

Runner-Up for Best HELOC Lender in Iowa

Company logo for Regions Bank
Regions Bank
MoneyGeek Score:
94/ of 100
Minimum Credit ScoreUndisclosed
Average HELOC APR8.50%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Offers a 6.99% introductory APR for six billing cycles
  • Allows conversion of variable rate balance to fixed rate
  • Provides a rate discount for automatic payments
CONS
  • Charges an overlimit fee of $29
  • Charges a late fee from $29 to $100
  • Loan-in-a-Line conversion costs $100

Calculate Your Monthly Payment

The average HELOC balance in Iowa for the third quarter of 2023 is $27,246, according to Experian. Understanding your HELOC balance is key to managing this type of debt effectively.

Calculate your HELOC payments to ensure you can handle 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 provided will show how your payments are divided between interest and principal over time.

Iowa HELOC Payoff Calculator

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.

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Credit Line Information

Draw Period Payment

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Repayment Period Payment

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Credit Payoff Schedule for Home Equity Line

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Best HELOC Lender in Iowa for Affordability

Company logo for Old National Bank
Old National Bank
MoneyGeek Score:
94/ of 100
Minimum Credit ScoreUndisclosed
Average HELOC APR8.99%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Borrow up to $1 million
  • Allows interest-only payments during the draw period
  • Offers a 0.25% rate discount for automatic payments
CONS
  • Charges a $50 annual fee
  • Accounts closed within three years face reimbursement fee
  • Other HELOC information not disclosed on website

Best HELOC Lender in Iowa for Service Quality

Company logo for First Interstate Bank
First Interstate Bank
MoneyGeek Score:
98/ of 100
Minimum Credit ScoreUndisclosed
Average HELOC APR8.50%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • Provides a mobile app for easy account management
  • Offers a financial calculator for HELOC payments
CONS
  • No online applications
  • Very little HELOC information available on website

What You Can Use a HELOC for in Iowa

HELOCs are popular in Iowa due to their flexibility and the control they offer over borrowing amounts and repayment timelines. These features make HELOCs a practical choice for many homeowners looking to leverage their home equity.

Below is a list of common ways you can use a HELOC, providing insights into its versatile applications.

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    Home Improvements or Renovations

    A HELOC is ideal for home improvements, offering flexibility as costs aren't final. It allows you to enhance your home without upfront financial strain, adapting to changes in project scope or unexpected expenses.

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    Consolidating High-Interest Debt

    With average 2023 consumer debt in Iowa at $80,933, a HELOC can simplify debt consolidation. It merges multiple debts into one payment, potentially lowering interest rates and easing financial management.

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    Funding Education Expenses

    Using a HELOC for education expenses is smarter than other debts. It can cover tuition, books and supplies, offering lower interest rates and flexible repayment terms compared to student loans or credit cards.

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    Investment Properties

    A HELOC can fund investment properties, offering potential returns. Shop around for the best HELOC lenders for investment property to secure favorable rates and terms, maximizing your investment's profitability.

How to Apply for a HELOC in Iowa

Understanding the steps to apply for a HELOC in Iowa is key for homeowners looking to leverage their home's equity. We've broken down this journey into six steps below to guide you through the process.

  1. 1
    Review your financial health

    Start by reviewing your current financial situation, including your credit score, debt-to-income ratio, and home equity. The average credit score in Iowa is 730 in the third quarter of 2023 based on Experian data. A higher score can improve your chances of HELOC approval.

  2. 2
    Compare rates in Iowa

    Comparing rates in Iowa can help you secure the best deal. Consider other lender features like repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact your overall loan experience.

  3. 3
    Prepare required documentation

    Gathering the necessary documents in advance can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns, and information on your mortgage and home value. Being prepared can help avoid delays.

  4. 4
    Submit an application

    You can submit your HELOC application online or in-person if your lender has a branch. Ensure all information is accurate and complete to prevent delays. Double-check for any errors or omissions before submission.

  5. 5
    Undergo a home appraisal

    Some lenders may require a home appraisal to assess your home's current market value. A home appraisal involves a professional evaluation of your property's worth, which can influence your loan terms.

  6. 6
    Wait for approval and closing

    The approval process can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and possibly paying closing costs. Some lenders might cover part of these costs, easing the financial burden.

Know How Much You Can Borrow in Iowa

The average HELOC limit in Iowa for the third quarter of 2023 is $63,270, according to Experian. The maximum amount you can borrow is typically linked to the equity in your home. The more equity you have, the higher your potential credit limit could be.

Check out the table below to see the range of credit lines offered by Iowa lenders in our database.

Bank of America$15,000 to $1,000,000
Old National Bank$10,000 to $1,000,000
Regions Bank$10,000 to $500,000
U.S. Bank$25,000 to $750,000
Ask the experts:

What risks or potential downsides should homeowners consider when choosing a lender for a HELOC?

Credit & Mortgage Expert

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.

FAQ: Best HELOC Lenders in Iowa

Who is the best HELOC lender in Iowa?
How to find the best HELOC lenders for bad credit in Iowa?
What factors should I consider when choosing a HELOC lender in Iowa?
What are common fees associated with HELOCs that I should compare in Iowa?
What is the typical draw period for HELOCs, and does it vary between lenders in Iowa?
How can I find a lender with flexible repayment options in Iowa?

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.

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Our analysis was completed in November 2024 and considered different banks and credit unions in California from S&P Global's SNL Depository Rates dataset.

101Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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.

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