Updated: November 16, 2024
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Truist Bank is the best home equity line of credit (HELOC) lender in Maryland with a MoneyGeek score of 95 out of 100. Bank of America is the runner-up with a MoneyGeek score of 94 out of 100.
The average HELOC limit in Maryland is $113,807. How much you can borrow depends on your home's equity, outstanding mortgage balance, and credit score.
Comparing rates can help you find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Maryland, updated weekly to assist you in your journey.
The average HELOC balance in Maryland was $42,547 in the third quarter of 2023, according to Experian. It's important to calculate your HELOC payments to manage this type of 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 provided 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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HELOCs are popular in Maryland because they offer flexibility and control over borrowing amounts and repayment timelines. This makes them an attractive option for homeowners who want to manage their finances effectively.
With a HELOC, you can access funds for various purposes, such as home improvements, debt consolidation, or even education expenses. Understanding where you can use a HELOC can help you make informed decisions about your financial needs.
Home Improvements or Renovations
A HELOC is ideal for home improvements, offering flexible funding as costs aren't final. It allows you to enhance your home without upfront cash, adapting to project changes seamlessly.
Consolidating High-Interest Debt
With average 2023 consumer debt in Maryland at $131,948, using a HELOC for debt consolidation can streamline payments and reduce interest, simplifying your financial life.
Funding Education Expenses
A HELOC is better for education expenses than other debts, covering tuition, books, and housing. It offers lower interest rates and flexible repayment options, making education more affordable.
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 Maryland can help you navigate the process smoothly. We've broken down this journey into six steps below.
Reviewing your current financial situation is essential for HELOC approval. Check your credit score, debt-to-income ratio, and home equity. In Maryland, the average credit score is 716, based on Experian data for Q3 2023. A higher score can improve your chances of approval.
Comparing rates in Maryland can help you secure the best HELOC deal. Look into lender 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 fits your financial needs.
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 make the process smoother and faster.
You can submit your HELOC application online or in-person if your lender has a branch. Ensure all information is accurate and complete to avoid delays. Double-check for errors or omissions before submission to keep the process on track.
Some lenders may require a home appraisal to determine your home's current market value. A home appraisal involves an assessment by a professional appraiser who evaluates the property's condition and compares it to similar homes in the area.
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, so inquire about this option.
The average HELOC limit in Maryland is $113,807, according to Experian's data for the third quarter of 2023. The maximum amount you can borrow through a HELOC is usually tied to the equity you have in your home. The more equity you have, the higher your potential credit limit can be.
Check out the table below to see the range of credit lines offered by Maryland lenders in our database. This can help you compare and choose the best option based on your financial situation.
| Bank of America | $15,000 to $1,000,000 |
| Citizens Bank | From $17,500 |
| HSBC Bank USA | Up to $500,000 |
| Manufacturers and Traders Trust Company | $15,000 to $1,000,000 |
| PNC Bank | $10,000 to $1,000,000 |
| TD Bank | From $25,000 |
| Truist Bank | Up 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.
Truist Bank is the best HELOC lender in Maryland, with a MoneyGeek score of 95 out of 100. It excels in customer service, an efficient application process, and transparency 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 lender flexibility, interest rates, and fees.
Consider factors like interest rates, fees, borrowing limits, repayment terms, and lender reputation when choosing a HELOC lender in Maryland.
Common fees associated with HELOCs include origination fees, annual fees, application fees, and early closure fees.
The typical 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 to find flexible repayment options.
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 November 2024 and considered different banks and credit unions in California 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.
