Updated: December 21, 2024
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The best home equity line of credit (HELOC) lender in Michigan is Bank of America with a MoneyGeek score of 96 out of 100, followed by Citizens Bank with a score of 94 out of 100.
The average HELOC limit in Michigan is $89,310. How much you can borrow often 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 Michigan, updated weekly to assist you.
The average HELOC balance in Michigan for the third quarter of 2023 is $31,912, according to Experian. Calculating your HELOC payments is key to managing this debt effectively and planning for any financial adjustments.
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 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 Michigan due to their flexibility and the control they offer over line amounts and repayment timelines. This financial tool allows homeowners to access funds as needed, making it an appealing option for those seeking to manage their finances efficiently.
Here’s a look at where you can use a HELOC.
A HELOC is ideal for home improvements, offering flexibility as costs change. It's a smart choice when project expenses aren't final, allowing you to adjust your budget as needed.
With average 2023 consumer debt in Michigan at $77,903, using a HELOC for debt consolidation can simplify payments and lower interest rates, making financial management easier.
A HELOC is a better option for education expenses than other loans. It can cover tuition, books and other costs, providing a flexible and cost-effective solution.
Using a HELOC for investment properties offers benefits like favorable terms. It's essential to shop around for the best HELOC lenders for investment property to secure the best rates.
Understanding the steps to apply for a HELOC in Michigan can help you navigate the process smoothly. We have broken down this journey into six steps below.
Understanding your credit score, debt-to-income ratio, and home equity is essential for HELOC approval. In Michigan, the average credit score is 719 in the third quarter of 2023 based on Experian data. This score can improve your chances of approval, making it a good time to review your financial health.
Comparing rates in Michigan can help you secure the best HELOC deal. Consider lender features such as repayment terms, fees and the option for a fixed-rate HELOC. These factors can significantly impact your overall costs and repayment experience, so it's worth taking the time to evaluate different offers.
Preparing 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. Having these ready can help you avoid delays and ensure a smoother application process.
Most lenders offer the convenience of online applications, but in-person submissions are also available if your lender has a branch. Ensure all information is accurate and complete to prevent delays. Double-check for any errors or omissions before submitting your application to expedite the process.
Some lenders may require a home appraisal to assess your property's current market value. A home appraisal involves a professional evaluation of your home's condition and features, which helps determine its worth. This step is crucial for both the lender and borrower to understand the property's value.
The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to the closing stage, 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.
According to Experian, the average HELOC limit in Michigan for the third quarter of 2023 is $89,310. The maximum amount you can borrow through a HELOC is typically 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 to see the range of credit lines offered by Michigan lenders in our database. This will give you a better understanding of what you might expect when exploring HELOC options in the state.
| Bank of America | $15,000 to $1,000,000 |
| Citizens Bank | From $17,500 |
| Fifth Third Bank | $10,000 to $500,000 |
| Flagstar Bank | $10,000 to $1,000,000 |
| KeyBank | $10,000 to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
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.
Bank of America is the best HELOC lender in Michigan, with a MoneyGeek score of 96 out of 100. It excels in customer service and education, offers competitive interest rates and has an efficient application process and quick approval turnaround.
When looking for the best HELOC lenders for bad credit, consider factors like flexible credit requirements, competitive interest rates and transparent terms.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender in Michigan.
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 for 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 December 2024 and considered different banks and credit unions in Michigan 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.
