Updated: November 16, 2024
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Synovus Bank is the best HELOC lender in Tennessee with a MoneyGeek score of 95 out of 100. Truist Bank is the runner-up with a MoneyGeek score of 95 out of 100.
The average HELOC limit in Tennessee is $127,793. 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 Tennessee, updated weekly to assist you.
The average HELOC balance in Tennessee for the third quarter of 2023 is $47,210, according to Experian. Calculating your HELOC payments is key to managing this type of debt effectively and planning for 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 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
YEAR
Home Equity Lines of Credit (HELOCs) are popular in Tennessee because they offer flexibility in borrowing and repayment, allowing homeowners to control their line amounts and timelines. This flexibility makes HELOCs an attractive option for those looking to manage their finances effectively.
Here are some common ways you can use a HELOC:
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as project costs evolve. With costs not being final, it allows you to manage expenses efficiently, ensuring your home upgrades are both practical and financially sound.
Consolidating high-interest debt
With average 2023 consumer debt in Tennessee at $93,821, using a HELOC for debt consolidation can streamline payments and reduce interest, helping manage multiple debts effectively.
Funding education expenses
Using a HELOC for education expenses is better than other debts, covering tuition, books, and fees. It offers lower interest rates, making it a smart choice for managing educational costs without the burden of high-interest loans.
Investment properties
A HELOC can fund investment properties, offering financial leverage. By shopping around for the best HELOC lenders for investment property, you can secure favorable rates and terms, enhancing your investment strategy.
Knowing how to apply for a HELOC in Tennessee can make the process smoother and more manageable. We've broken down this journey into six steps below.
Before applying for a HELOC, it's essential to review your credit score, debt-to-income ratio, and home equity. In Tennessee, the average credit score is 705, which can improve your chances of approval. This data is from the third quarter of 2023 based on Experian data.
Comparing HELOC rates in Tennessee can help you secure the best deal. Consider lender features like repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact your overall costs and flexibility.
Preparing the necessary documents for a HELOC application can streamline the process. Commonly required documents include proof of income, recent tax returns, and information on your mortgage and home value. Having these ready can prevent delays.
Most lenders allow you to apply for a HELOC online, but in-person applications are also possible if your lender has a branch. Ensure all information is accurate and complete to avoid delays in processing your application.
Some lenders may require a home appraisal to determine your home's current market value. This assessment helps establish the amount you can borrow through a HELOC. Understanding this process can help you prepare for any additional steps.
The HELOC 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, easing the financial burden.
The average HELOC limit in Tennessee is $127,793 for the third quarter of 2023, 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 Tennessee lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| Fifth Third Bank | $10,000 to $500,000 |
| Regions Bank | $10,000 to $500,000 |
| Truist Bank | Up to $500,000 |
| U.S. Bank | $25,000 to $750,000 |
Some lenders charge much higher fees than others when it comes to HELOCS. That’s why it’s recommended to shop around when applying for a HELOC. Some banks or credit unions will not charge you any fees at all, or you may just have to pay the appraisal fee.
Synovus Bank is the best HELOC lender in Tennessee, with a MoneyGeek score of 95 out of 100. It excels in customer service, reputation and transparency, and offers competitive interest rates.
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 eligibility criteria, lower interest rates and reasonable fees.
Consider factors like interest rates, fees, borrowing limits, repayment terms and lender reputation.
Common fees 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 Tennessee 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.
