Home equity lines of credit — better known as HELOCs — are a viable option for borrowing against the equity in your home in order to pay for some of life’s big expenses, like education costs, medical debt or home renovations. They can be a good alternative to high-interest credit cards or personal loans, especially when you’re in need of funding a large purchase.
Let’s take a closer look at what HELOCs are, how they work, how they’re different from other loan products and how some of the top HELOC products on the market compare to each other.
Compare Home Equity Line of Credit Rates
|Bank||Current Rate (APR)||Line Amount||Description|
|PenFed Credit Union||80% or Less LTV: 5.50% APR
80.01% to 85% LTV: 6.00% APR
85.01% to 90% LTV:
|$25,000 – $500,000
$25,000 – $500,000
$25,000 – $250,000
|Must be a member, but offers an interest-only HELOC option|
|Bank of America||3.490% APR for the first 12 months, 5.40% APR thereafter||$25,000 – $1,000,000||Offers interest rate discounts and the ability to switch to a fixed-rate option|
|Chase Bank||5.25% APR – 7.89% APR depending on amount and credit score||$50,000 – $500,000||Offers interest rate discounts and the ability to switch to a fixed-rate option|
|PNC Bank||APRs vary based on where you live||$10,000 – 89.9% LTV||Relatively few fees, but there is little transparency about their loan terms|
|SunTrust||3.49% APR for the first 12 months, 4.75% – 6.22% APR thereafter||$10,000 – $500,000||No closing costs as long as you keep the account open for three years|
|U.S. Bank||4.15% APR to 8.45% APR||$15,000 – $750,000||Interest-only HELOC option|