Updated: November 16, 2024
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Berkshire Bank is the best HELOC lender in Vermont with a MoneyGeek score of 95 out of 100. Mascoma Bank follows closely with a MoneyGeek score of 94 out of 100.
The average HELOC limit in Vermont is $87,698. How much you can borrow often depends on factors like your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Vermont, updated weekly to assist you.
The average HELOC balance in Vermont for the third quarter of 2023 is $32,371, according to Experian. Calculating your HELOC payments is key to managing this type of debt effectively and planning for 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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Home Equity Lines of Credit (HELOCs) are popular in Vermont due to their flexibility and control over borrowing and repayment. These features allow homeowners to manage their finances effectively by accessing funds as needed and setting their own repayment timelines.
Here's a look at where you can use a HELOC.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as costs change. It allows you to finance projects without final cost constraints, making it a smart choice for Vermont homeowners.
Consolidating high-interest debt
With average 2023 consumer debt in Vermont at $90,960, a HELOC simplifies debt consolidation. It combines multiple debts into one, potentially lowering interest rates and monthly payments.
Funding education expenses
Using a HELOC for education expenses is cost-effective compared to other debts. It can cover tuition, books, and supplies, providing a flexible financing option for Vermont families.
Investment properties
A HELOC offers favorable terms for investment properties. It's crucial to shop around for the best HELOC lenders for investment property to secure the best rate and terms.
Understanding the steps to apply for a HELOC in Vermont is key to navigating the process smoothly. Below, we've broken down this journey into six steps to guide you.
Reviewing your current financial situation is key when considering a HELOC. Check your credit score, debt-to-income ratio, and home equity. In Vermont, the average credit score is 737 based on Experian data. This score can enhance your chances of HELOC approval in the third quarter of 2023.
Comparing rates in Vermont can help you secure the best HELOC deal. Look beyond rates and consider lender features like repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact your overall borrowing experience.
Preparing the necessary documents ahead of time 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 prevent delays in the approval process.
Most lenders offer the convenience of online applications, but you can also apply in-person if a branch is available. Ensure your application is free of errors or omissions to avoid unnecessary delays. Double-check all information before submission.
Some lenders may require a home appraisal to determine your home's current market value. This process involves a professional assessment of your property's worth, which can influence the amount you can borrow through a HELOC.
The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and possibly paying closing costs. Some lenders may cover part of these costs, easing the financial burden.
The average HELOC limit in Vermont is $87,698 for the third quarter of 2023, according to Experian. The maximum HELOC amount you can borrow is often tied to the equity you have in your home. The higher your equity, the higher your potential credit limit.
Check out the table below to see the range of credit lines offered by Vermont lenders in our database.
| Berkshire Bank | From $17,500 |
| EastRise Federal Credit Union | $5,000 to $250,000 |
| NBT Bank | $10,000 to $500,000 |
When shopping for a HELOC, most people focus only on the interest rate. Instead, you should focus on the annual percentage rate (APR) as that is the true cost of what you are paying back. Also consider any fees the lender may be charging you. A lower rate with higher fees can be deceptive.
Berkshire Bank is the best HELOC lender in Vermont, with a MoneyGeek score of 95 out of 100. It excels in customer service, reputation, 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 lenders who offer flexible terms, lower fees and are willing to work with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender in Vermont.
Common fees associated with HELOCs 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 for flexible repayment options in Vermont.
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 Vermont 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.
