Best HELOC Lenders
A home equity line of credit (HELOC) lets you borrow against your home's equity as you need it, usually at a lower rate than a personal loan or card. When you compare lenders, the rate is only part of it. Also compare the margin over the prime rate, closing costs and annual fees, how much of your equity you can borrow, and how long the draw period lasts. Your home secures the line, so if you can't repay, you can lose it.
Checked September 23, 2026.
How HELOCs are priced
Most HELOC rates are variable: the prime rate plus a margin set by the lender. When the Federal Reserve moves rates, your payment moves too. The margin is what lenders actually compete on. Ask for it directly, not just the "rate today."
Some lenders let you lock part of your balance at a fixed rate, which helps with a large, one-off cost.
Lenders compared
| Lender | Known for | Fees | Worth knowing |
| Figure | Online application, fast funding | An origination fee | Draws have fixed rates. You receive the full line at the start |
| Bank of America | No closing costs on many lines | No annual fee | Rate discounts for existing customers and autopay |
| PenFed Credit Union | Borrowing a high share of your equity | Varies | Membership required |
| Your local credit union | Low margins | Often low | Often the cheapest, so ask before committing elsewhere |
What to compare
| Why it matters | |
| Margin over prime | Sets your rate for the life of the line |
| Maximum combined loan-to-value (CLTV) | How much you can borrow. Usually 80–90% of your home's value, minus your mortgage |
| Closing costs | Appraisal, title and recording fees. Some lenders pay them but charge them back if you close the line early |
| Annual fee | Some lenders charge $50–$100 a year |
| Draw period | Usually 10 years of borrowing, often interest-only |
| Repayment period | Usually up to 20 years, when payments jump because you're repaying principal |
| Minimum draw | Some lenders require an initial draw |
How much can you borrow?
Home value × maximum CLTV − mortgage balance = your maximum line.
For example: a $400,000 home with an 85% CLTV limit and a $250,000 mortgage allows up to $90,000 ($340,000 − $250,000).
Watch the payment jump
During the draw period you might pay interest only. When repayment starts, you pay principal too, and the payment can double or more. Plan for that payment from the start.
HELOC or personal loan?
A HELOC usually suits large or staged costs, such as a long renovation. For a single job under about $50,000 that you need done quickly, a personal loan avoids putting your home up as collateral. See home improvement loans.
Questions to ask each lender
- What's the margin over prime, and is there an introductory rate?
- What are the closing costs, and do I owe them if I close the line early?
- Is there an annual fee or a minimum draw?
- Can I lock part of the balance at a fixed rate?
- How long does it take to close?
FAQ
Is HELOC interest tax-deductible? Only if you spend the money buying, building or substantially improving the home that secures it (IRS Publication 936).
Does opening a HELOC hurt my credit? Applying causes a hard inquiry. Most scoring models don't count a HELOC in card utilization, but some can.
Can a lender freeze my line? Yes. If your home's value falls a lot or your finances change, a lender can freeze or reduce the line.
Figures and rules in this article are checked against the official sources below. Where they disagree with us, they win.
- CFPB 'What you should know about home equity lines of credit'
- Regulation Z HELOC disclosures (12 CFR 1026.40)
- IRS Publication 936
- lender pages
