LOAN AMOUNT | APR AS LOW AS Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details. |
|---|---|
$25,000 | 6.63% |
$50,000 | 6.63% |
$100,000 | 6.63% |
$150,000 | 6.50% |
Written by Rene Bermudez | Edited by Crissinda Ponder | Updated April 29, 2025The index
The index is the moving part of the formula that determines your HELOC rate. Common indexes for HELOCs are the U.S. prime rate and the Constant Maturity Treasury (CMT).The margin
The margin is a set amount added to the index to calculate your interest rate. This gap between what the market determines and what you pay is how lenders make money on a HELOC.The ceiling
The ceiling sets a limit on how high your rate can rise at any time during the loan term.
10 years
20 years
$1 million
$8,073
Flagstar, a large regional bank based in New York, offers HELOCs in 49 states (excluding only Texas) in amounts ranging from $10,000 to $1 million. You’ll even have the flexibility to secure the loan with a primary or secondary residence. Just keep in mind their maximum LTV is still 85%, even with a higher loan amount.
You’ll have the best chance of qualifying for a mortgage with Flagstar if you have a 75% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 46% of approved borrowers had a debt-to-income (DTI) ratio below 40%.
2 to 5 years
5 to 30 years
5 to 10 days
$7,794
If you’re looking for a speedy closing, you’ll likely appreciate Rate’s 100% digital application process and option to “FlashClose” — that is, sign most of your closing documents online. Rate boasts a five- to 10-minute application process and a five- to 10-day wait for funds. That’s quite fast compared to the 45 to 60 days you could wait with a traditional HELOC lender.
You’ll have the best chance of qualifying for a mortgage with Rate if you have an 85% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 45% of approved borrowers had a debt-to-income (DTI) ratio below 40%.
Not disclosed
Not disclosed
$0
$5,309
As a national bank, Bank of America offers the convenience of accessibility — regardless of where you live or any changes life throws your way, you’ll likely be able to access a branch. And if you’re looking for a lender advertising HELOCs with no closing costs, Bank of America has that and more — plus, they also charge no application fees and no annual HELOC fees. In addition, there are several ways to earn rate discounts on your HELOC, but you’ll need to have a Bank of America checking account to utilize most of them.
You’ll have the best chance of qualifying for a mortgage with Bank of America if you have a 61% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 50% of approved borrowers had a debt-to-income (DTI) ratio under 40%.
20 years
20 years
95%
$3,442
Navy Federal CU serves active duty service members, veterans, members of the U.S. Department of Defense and their immediate families and household members. Their HELOCs — which allow a maximum combined loan-to-value ratio (for primary and secondary residences) of 95% — were among the most generous of the lenders surveyed. And with a solid online experience and 24/7 customer support, Navy Federal could be your best bet if you’re looking for a high-LTV HELOC.
You’ll have the best chance of qualifying for a mortgage with Navy Federal if you have a 77% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. However, HELOC customers can qualify with LTVs up to 95%. Across all loan types, about 42% of approved borrowers had a debt-to-income (DTI) ratio below 40% in 2023.
10 years
5 to 30 years*
8.68% to 16.00%
$5,784
Truist allows you to take out a variable-rate HELOC — and, if you choose, you can lock in a fixed rate on up to five draws at a time (though you’ll have to draw at least $5,000 to take advantage of this option). Truist lends to customers in every state but three: Alaska, Arizona and Hawaii.
You’ll have the best chance of qualifying for a mortgage with Truist if you have a 60% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 42% of approved borrowers had a debt-to-income (DTI) ratio under 40%.
When getting HELOC offers, each lender determines how your HELOC interest rate is calculated, but the same factors are always included:
| Your loan amount | Borrowing 80% or less of your home’s value is likely to get you lower HELOC rates, although most HELOC lenders let you borrow up to 85%. Some lenders offer high-LTV HELOCs to borrow up to 100% of your home's value, but they usually have a higher rate. |
| Your credit score | A 780 score or higher is recommended to get the lowest HELOC rates. But some lenders will allow a 620 minimum credit score. |
| Your debt-to-income (DTI) ratio | Your DTI ratio measures your gross monthly income versus monthly debt. A low DTI ratio means you have low monthly debt compared to income, and will give you a better rate. Lenders usually allow a maximum 43% DTI ratio. |
| Interest rate adjustments | Similar to adjustable-rate mortgages, HELOCs typically have interest rates that change on a specific schedule. |
If you’re just looking to estimate your home’s current value, an online home valuation tool can do the trick. But, for a more exact number, you’ll need to get a comparative market analysis (CMA) or home appraisal.
| Loan amount | Monthly payment Average rates disclaimer: Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details. |
|---|---|
| $25,000 | $160.08 |
| $50,000 | $320.16 |
| $100,000 | $640.31 |
| $150,000 | $948.10 |
Home equity loan rates are often slightly higher than HELOC rates, but they have an advantage: the rates are fixed rather than variable. If you prefer a simpler loan with stable monthly payments, you may want to consider a home equity loan instead of a line of credit.
Learn more about HELOCs vs. home equity loans and how to choose.HELOC rates, like interest rates, are relatively high right now compared to where they sat before the pandemic. The Federal Reserve made its third cut to the federal funds rate last year on December 17th, which helped HELOC rates trend downward. But, ultimately, the exact rate you get on a HELOC will vary from lender to lender and is based on your personal financial situation.
Although the prime rate has shown an overall upward trend for several years, it has dipped slightly over the past year. That’s good news for average HELOC interest rates, which dropped by 1.29% percentage points between January 2024 and January 2025 (from 8.92% to 7.63%). Rates are calculated based on conditional offers for home equity lines of credit with 10- and 15-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the given month for all loan amounts. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
The lowest interest rate offers we saw in that same time period also got more affordable, going from 7.49% in January 2024 to 6.65% in January 2025.
A cash-out refinance is another equity-tapping loan option, and will typically come with a lower interest rate than a HELOC. A cash-out refinance is a “first” mortgage, and lenders can usually offer lower rates for these because their first-in-line status lowers the risk that they won’t be repaid in a foreclosure.
Need help deciding which option for tapping home equity is best for you? Read our comparison of cash-out refinances vs. home equity loans vs. HELOCs.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. You won’t have to worry about rising rates in the future, though, which is especially important if you’re living on a fixed income.
You’ll typically pay HELOC closing costs equal to 2% to 5% of your credit line amount, though the fees will ultimately vary from lender to lender. Some banks even 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.
A teaser rate is a low interest rate offered on a loan product for a set time period at the beginning of a loan’s repayment schedule. It may be called an initial rate, introductory rate or discount rate, and many HELOC lenders offer teaser rates to their customers. Check the fine print for extra requirements like a higher minimum credit score. Make sure you can afford the payment once the teaser rate period ends. And don’t forget: You can refinance a teaser-rate loan to a fixed-rate loan in the future, if you qualify.
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).
You’ll likely need a home appraisal for a HELOC, but the requirements will vary by lender. In cases where you aren’t required to get a full appraisal, you might want to use a broker price opinion instead.
Estimating your home equity is simple — just subtract your mortgage balance from your home’s estimated value. For example, if your home is worth $450,000 and you still owe $250,000 on the loan, you have $200,000 in home equity.
When calculating your home equity for a cash-out refinance or second mortgage, your lender will order a home appraisal to get a better idea of the value of the home.
However, the only way to truly nail down how much home equity you have is to sell the house. That’s because you’ll only know then what your home’s true value is and how much you’ll have to spend to sell it.
HELOC rates don’t necessarily move in the same direction that mortgage rates do. That’s because they’re directly tied to a benchmark called the prime rate. When the federal funds rate rises or falls, both the prime rate and HELOC rates tend to follow.
To determine the best HELOC lenders, we reviewed data collected from more than 30 lender reviews completed by the LendingTree editorial staff.
Each lender review gives a rating between zero and five stars, based on several HELOC features including home equity product features and variety, digital application processes and the availability of product and lending information online. To be eligible for a “best of” HELOC title, lenders must have a lender review rating of at least four stars.
We awarded extra points to lenders who:
Our editorial team brought together the data from our lender reviews, as well as the scores awarded for HELOC-specific characteristics, to find the lenders with a product mix, information base and guidelines that best serve the needs of HELOC borrowers.
