Updated: November 23, 2024
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Chevron Federal Credit Union is the best home equity line of credit (HELOC) lender in Mississippi with a MoneyGeek score of 95 out of 100. Regions Bank follows closely with a score of 94 out of 100.
The average HELOC limit in Mississippi is $77,124. How much you can borrow depends on your home's equity, outstanding mortgage balance, and credit score.
Comparing rates can help you find suitable lenders. MoneyGeek compiled the best HELOC rates in Mississippi, updated weekly to assist you in your journey.
The average HELOC balance in Mississippi for the third quarter of 2023 is $34,565, according to Experian.
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 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 Mississippi due to their flexibility and the control they offer over borrowing amounts and repayment schedules. This financial tool allows homeowners to access funds as needed, making it a versatile option for managing expenses.
Here are some common ways you can use a HELOC.
Home Improvements or Renovations
A HELOC is ideal for home improvements, offering flexibility as costs evolve. It allows you to fund projects without finalizing costs upfront, ensuring you can adapt to changes and enhance your home's value effectively.
Consolidating High-Interest Debt
With average 2023 consumer debt in Mississippi at $65,547, using a HELOC for debt consolidation can lower interest rates and simplify payments, making financial management more efficient.
Funding education expenses
A HELOC offers a better alternative for funding education expenses than other debts. It can cover tuition, books, and housing, providing a flexible and lower-interest option for managing educational costs.
Investment Properties
Using a HELOC for investment properties can enhance your portfolio. Shop around for the best HELOC lenders for investment property to secure the best rate and favorable terms, maximizing your investment potential.
Understanding the steps to apply for a HELOC in Mississippi is important for those looking to leverage their home equity. We've broken down this journey into six steps below, providing a clear path forward.
Before applying for a HELOC, it's essential to review your financial health, including your credit score, debt-to-income ratio, and home equity. In Mississippi, the average credit score is 680 in the third quarter of 2023, based on Experian data. This score can influence your chances of HELOC approval.
Exploring HELOC rates in Mississippi can help you secure the best deal. It's also wise to evaluate a lender's features, such as repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact the overall cost and flexibility of your loan.
Gathering the necessary documents is a key step in the 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 streamline your application and prevent delays.
You can submit your HELOC application online or in-person if your lender has a branch. Ensure all information is accurate to avoid delays. Double-check for any errors or omissions before submission to ensure a smooth process.
Some lenders may require a home appraisal to determine your property's current market value. This process involves a professional assessment of your home's worth, which can affect the amount you can borrow through a HELOC.
After submitting your application, the approval process 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 it's worth inquiring.
The average HELOC limit in Mississippi for the third quarter of 2023 is $77,124, according to Experian. The maximum amount you can borrow is usually tied to the equity you have 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 Mississippi lenders in our database.
| Chevron Federal Credit Union | Up to $350,000 |
| Community Bank of Mississippi | $25,000 to $1,000,000 |
| Regions Bank | $10,000 to $500,000 |
| Trustmark National Bank | Up to $250,000 |
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.
Chevron Federal Credit Union is the best HELOC lender in Mississippi with a MoneyGeek score of 95 out of 100. It excels in customer service and education, offers competitive interest rates, and is credible and transparent about its HELOC terms and process.
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 lenders that offer flexible terms, accept lower credit scores, and provide clear communication about fees and conditions.
Consider interest rates, fees, borrowing limits, repayment terms, and lender reputation when choosing a HELOC lender in Mississippi.
Common fees associated with HELOCs include origination fees, annual fees, application fees, and early closure fees. Comparing these can help you choose the best lender.
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 for more 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.
