Home Equity Line of Credit (HELOC) Rates As Low As
6.87% Based on offered rates for home equity lines of credit of at least $100,000 offered to LendingTree customers in July 2025. Excludes offers of fixed-rate terms.

Financial institutions that offer HELOC rate discounts include:

Bank of America

• 0.25% interest rate discount for setting up automatic payments from a Bank of America account
• 0.10% interest rate discount for each $10,000 withdrawn when you open the credit line (up to 1.50%)
• 0.125% to 0.625% interest rate discount for members of Bank of America’s Preferred Rewards program

Flagstar

• 0.25% interest rate discount for setting up automatic payments from a Flagstar account
• To waive all lender closing fees if you keep the account open for at least 36 months

TD Bank

• 0.25% interest rate discount for setting up automatic payments from a TD Bank checking account

BMO Harris

• 0.25% interest rate discount for setting up automatic payments from a BMO account
• 0.25% to 0.625% interest rate discount for customers who also have at least $250,000 in depositor investment accounts at BMO

While repayment terms can vary by lender, most HELOCs follow a similar structure:

1.Draw period. During the draw period — typically the first five to 10 years — you can borrow from the credit line as needed, up to the limit. Many lenders allow you to make interest-only payments during this time.

2.Repayment period. Once the draw period ends, the repayment stage begins — this usually lasts 10 to 20 years. At this time, you can no longer use the HELOC for purchases, and you’re required to start repaying both interest and principal.

An interest-only HELOC can be a great way to access cash and enjoy low monthly payments for an initial period. However, once the draw period ends, your payments could skyrocket. That’s why it’s only a good idea to use an interest-only HELOC if you have a solid plan in place — one in which there’s no doubt that you can afford the monthly payments even if they adjust up to the rate cap.

If you’re not sure, ask your lender to help you crunch the numbers on your highest and lowest possible payments.

Yes, but you’ll likely pay a higher interest rate — that means your payment on the amount you draw will be higher than a comparable, variable-rate HELOC. But you won’t have to worry about rising rates in the future, which is especially important if you’re living on a fixed income.

You’ll typically pay HELOC closing costs ranging from 2% to 5% of your credit line amount, though the fees will ultimately vary from lender to lender.

Some of these expenses include:

• Appraisal fee: Some HELOC lenders require a home appraisal to verify your home’s value. Appraisal costs vary by location and property type (such as single-family or multifamily) but typically range from $300 to $500.
• Origination fee: This fee covers the cost of processing your loan application. It’s typically a flat fee or a percentage of your loan amount, such as 1%.
• Early withdrawal penalty: Closing your account too early may result in early termination charges, typically ranging from $0 to $500.

Some banks offer no-closing-cost options. However, you’ll likely have to link the payments and withdrawals to your checking account to take advantage of options like these. Watch out for other conditions on the no-cost options, too — they may come with rules about how long you have to keep the HELOC open.

There may be a slight drop in your score when you apply for a HELOC. However, if you apply with multiple lenders within a 45-day window, the credit checks usually count as one inquiry, according to the Consumer Financial Protection Bureau (CFPB).