Best HELOC Rates In June 2024

Advertiser Disclosure

Written by

Jeff Ostrowski

and

Linda Bell

Edited by

Troy Segal

Reviewed by

Mark Hamrick

Edited by

Troy Segal

Reviewed by

Mark Hamrick

Updated June 17, 2024

Check your credit score
The higher yourcredit score, the better your rates and the more likely you are to be approved. If you have a credit score in the mid-600s or below, work to pay off existing debt and make timely payments on your credit cards toimprove your score.
Shop Around
To make sure you're getting the best rate and terms possible, research a few lenders and take advantage of any prequalification offers available.
Gather your application materials
Many lenders will ask for your Social Security number or other identification, salary, employment information and estimated home value. Now is also a good time to collect details about your home's outstanding mortgage balance. After you apply, lenders should reach out within a few days, although some online lenders offer same-day approval.
Complete the verification process
Once you've accepted a line of credit offer, you'll have to provide verification documents, which may include pay stubs, W-2s or tax returns. You may also have to get an appraisal on your home. At this time, lenders will perform a hard credit check, which will temporarily ding your credit score.
Receive funds
The time between offer acceptance and funds disbursem*nt varies by lender, but some may make HELOC funds available in as little as one week. From there, you can use your funds as needed and begin making payments.

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What are today's average HELOC rates?

LOAN TYPE	AVERAGE RATE	AVERAGE RATE RANGE
HELOC	9.18%	8.64% – 10.81%

To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. The rates shown above are calculated using a loan or line amount of $30,000, with a FICO score of 700 and a combined loan-to-value ratio of 80 percent.

Note: The above APRs are current as of June 12, 2024. The exact APR you might qualify for depends on your credit score and other factors, such as whether you're an existing customer or enroll in auto-payments.

National HELOC interest rate trends

No change in HELOC rates as Fed holds steady

The average rate on a home equity line of credit (HELOC) remained 9.18 percent as of June 12, no change from the previous week, according to Bankrate’s survey of large lenders. HELOCs last dipped below 9 percent in March.

HELOCs come with variable interest rates, which change based on the prime rate, in turn tied to Federal Reserve policy. At the close of its latest meeting, the central bank left rates unchanged as it continues to watch inflation data.

HELOC rates can also change because one or more home equity lenders markets an especially generous rate. That’s one reason why it often pays to search around for HELOC offers, at least for a lower introductory rate.

Even as rates remain high, HELOCs are still more attractively priced compared to unsecured personal loans, which jumped to an average rate of 12.35 percent this week. If you’re looking to finance a renovation and have equity to tap, a line of credit could be less expensive than a home improvement loan. It’d also save you from a cash-out refinance, which could mean giving up a low rate on your mortgage in exchange for a new one.

A line of credit isn’t the only way to leverage your home’s equity. Another option: home equity loans, or second mortgages, which come with fixed interest rates. As of June 12, the average rate for the 10-year $30,000 home equity loan was 8.77 percent and the average rate for the 15-year $30,000 home equity loan was 8.75 percent, according to Bankrate’s survey.

How to get the best HELOC rate

When shopping for a HELOC, look for a competitive interest rate, repayment terms that meet your needs and minimal fees. Loan details presented here are current as of the publication date. Check the lenders’ websites for more current information. The top lenders listed below are selected based on factors such as APR, loan amounts, fees, credit requirements and broad availability.

Before you start shopping for a HELOC, make sure you meet lenders’ requirements. Then, take some time to improve your credit score. If you carry a big credit card balance, pay it down. If your auto loan note is almost done, you might pay it off a month or two early. You might also make a few additional mortgage payments to increase your home equity.

Once everything is in order, shop around. To find the best HELOC rate, compare multiple lenders — a rule of thumb is to get quotes from at least three. Remember, the rate is important, but it’s not the only factor you should consider. Competing HELOC rates are likely to be close, so be sure to also scrutinize fees and terms to get a sense of the APR, and make sure you’re not comparing apples to oranges.

Best home equity line of credit (HELOC) rates in June 2024

LOAN TYPE	CREDIT LINE AMOUNT	TERM PERIOD	CURRENT APR
Comerica Bank	$10,000–$500,000	30 years	6.49%
Bethpage Federal Credit Union	Up to $500,000	10-year draw, 20-year repay	6.99%
Bank of America	$15,000–$1 million	10-year draw, 20-year repay	7.49%
Third Federal Savings	$10,000–$200,000	30 years	7.49%
BMO	$25,000-$150,000	10-year draw/ 20-year repay for variable-rate HELOC; 5-20 year repay for fixed-rate HELOC	6.99% (fixed) / 8.24% (variable)
TD Bank	Starting at $25,000	Not Specified	8.24%
Guaranteed Rate	$20,000–$400,000	Up to 30 years	9.10%
Connexus Credit Union	Starting at $5,000	15-year draw, 15-year pay	8.74%

Note: The above APRs are current as of May 7, 2024. The exact APR you might qualify for depends on your credit score and other factors, such as whether you're an existing customer or enroll in auto-payments.

Comerica Bank

Rating: 4 stars out of 5

Bethpage Federal Credit Union

Rating: 4.2 stars out of 5

4.2

Bankrate Score

Bankrate Rating = 4.2/5

Lender: Bethpage Federal Credit Union
Interest Rates: 6.99% APR (for 12 months)
Approval Time: 6-10 weeks
Max LTV Ratio: Not specified
Minimum Credit Score: 720
Available Term Lengths: 10-year draw period with a 20-year repayment period
Line of Credit Amount: Up to $1,000,000
Fees: If you close your HELOC within 36 months, you'll need to repay the closing costs you would've paid. Hazard insurance and flood insurance may be required.

Bank of America

Rating: 3.5 stars out of 5

3.5

Bankrate Score

Bankrate Rating = 3.5/5

Lender: Bank of America
Interest Rates: Starting at 7.49% APR (special introductory rate)
Approval time: 5-7 weeks
Max LTV Ratio: 85%
Minimum Credit Score: Unavailable
Available Term Lengths: 10-year draw period with a 20-year repayment period
Line of Credit Amount: Starting at $15,000 to $1,000,000
Fees: Early closure fee of $450, plus taxes and fees, applies to accounts closed within 36 months

Third Federal Savings

Rating: 4.5 stars out of 5

4.5

Bankrate Score

Bankrate Rating = 4.5/5

Lender: Third Federal Savings
Interest Rates: 7.49%
Approval Time: Not Specified
Max LTV Ratio: 80%
Minimum Credit Score: Not specified
Available Term Lengths: 30 years
Line of Credit Amount: $10,000 to $200,000
Fees: You don’t need to worry about application or origination fees with either home equity loan type from Third Federal, and you can pay off your debt early without a penalty. The only charge you’ll need to pay is a $95 annual fee.

BMO

Rating: 4.5 stars out of 5

4.5

Bankrate Score

Bankrate Rating = 4.5/5

Lender: BMO
Interest Rates: 6.99% (special introductory rate for six months)
Approval Time: Not Specified
Max LTV Ratio: 70%
Minimum Credit Score: 650-680
Available Term Lengths: 10-year draw period and 20-year repayment term for HELOC (5-year to 20-year repayment term for fixed-rate HELOC)
Line of Credit Amount: $25,000-$150,000
Fees: BMO advertises both home equity loans and HELOCs with no application fees and low-to-no closing costs. If you close your account within three years, the bank might charge a fee to recoup closing costs, though. Additionally, the variable-rate HELOC comes with a $75 annual fee during the draw period, and there’s a $75 fee every time you convert a part of your balance to a fixed-rate after closing.

TD Bank

Rating: 4.1 stars out of 5

4.1

Bankrate Score

Bankrate Rating = 4.1/5

Lender: TD Bank
Interest Rates: 8.24%
Approval Time: 2.5 days
Max LTV Ratio: 90%
Minimum Credit Score: 660
Available Term Lengths: Not specified
Line of Credit Amount: Starting at $25,000
Fees: There’s a $50 annual fee on loans over $50,000 and a $99 origination fee. The 2% termination fee (max $450) applies if you pay the line of credit off and close it within 24 months. You will also have to pay closing costs on lines over $500,000.

Guaranteed Rate

Rating: 3.3 stars out of 5

3.3

Bankrate Score

Bankrate Rating = 3.3/5

Lender: Guaranteed Rate
Interest Rates: 9.10%
Approval Time: 5-10 minutes
Max LTV Ratio: 90%-95%
Minimum Credit Score: 620
Available Term Lengths: Two-year to five-year draw period, up to 30-year repayment period
Line of Credit Amount: $20,000-$400,000 (Minimum of $25,001 in Alaska)
Fees: Guaranteed Rate charges a 1.99% origination fee for a HELOC. This charge is deducted from the line of credit, however; you don’t need to bring any money to closing.

Connexus Credit Union

Rating: 3.5 stars out of 5

3.5

Bankrate Score

Bankrate Rating = 3.5/5

Lender: Connexus
Interest Rates: 8.74% APR
Approval Time: within 30 days of applying
Max LTV Ratio: 80%
Minimum Credit Score: 640
Available Term Lengths: 15-year draw period with a 15-year repayment term
Line of Credit Amount: Starting at $5,000
Fees: Depending on loan terms and property location, closing costs can range from $175 to $2,000.

Methodology

To determine this best HELOC rates list, we surveyed over 30 lenders offering home equity lines of credit. The top HELOC rates displayed here may be special introductory rates, and represent the lowest advertised APR (annual percentage rate) based on a borrower with a credit score of 700 or higher and a combined loan-to-value (CLTV) ratio of 80 percent obtaininga 30-year, $30,000 home equity line of credit.

Note that the lenders listed here are based solely on their offering the lowest APR, and are not necessarily the best overall HELOC lenders Bankrate has scored. Learn more about Bankrate’s lender review methodology.

What is a home equity line of credit, or HELOC?

AHELOCis a variable-rate home equity product that works like acredit card— you have access to a credit line that you can draw from and pay back as needed. HELOC rates are tied to a benchmark interest rate. As theprime ratemoves up or down, so does your HELOC rate. Payments vary depending on the interest rate and how much money you have used.

How does a HELOC work?

With a HELOC, you’re given a line of credit that’s available for a set time frame (known as the draw period), usually up to 10 years. While most HELOCs have aninterest-only draw period, you can make both interest and principal payments to pay off the line of credit faster.

When theline of credit’s draw period expires, you enter the repayment period, which can last up to 20 years. You’ll pay back the outstanding balance that you borrowed, as well as any interest owed. A lender may allow you to renew the credit line.

How do I qualify for a HELOC?

In addition toestimating your home equity, lenders look at your credit history, credit score, income and other debts. Most lenders require a combinedloan-to-value ratio(CLTV) of 85 percent or less, a credit score of 620 or higher and a debt-to-income (DTI) ratio below 43 percent to approve you for a home equity line of credit.

Read more:HELOC and home equity loan requirements in 2023

Pros and cons of HELOCs

HELOCs combine relatively low interest rates with the flexibility to borrow what you need when you need it. If you need money over an unpredictable period of time, a line of credit is ideal. However, there are always risks when you take out a loan, especially one that's secured by your home. Here are some of the key considerations for getting a HELOC.

PROS

Lets you tap home equity without disturbing the primary mortgage (nice if you’ve locked in a low rate).
Typically lower upfront costs than home equity loans.
Lower interest rates than with credit cards.
Usually low or no closing costs.
Interest charged only on the amount of money you use.
CONS
- Lenders may require minimum draws.
- Interest rates can adjust upward or downward.
- Lenders may charge a variety of fees, including annual fees, application fees, cancellation fees or early closure fees.
- Late or missed payments can damage your credit and put your home at risk.

HELOC vs. home equity loan

While HELOCs and home equity loans are similar in some ways, they have a few distinct differences. These are some of the key factors you should consider whendeciding between a HELOC and a home equity loan.

	HELOCS	HOME EQUITY LOANS
Interest Rates	Variable	Fixed
APRs	Slightly lower	Slightly higher
Funds disbursem*nt	Line of credit	Lump sum
Repayment terms	First 5-10 years: Interest-only paymentsLast 10-20 years: interest and principal	10-30 years of fixed payments
Best for	Ongoing home improvement projects, college tuition payments, medical expenses	Debt consolidation, large home improvement projects, major purchases

Other alternatives to a HELOC

A HELOC is not the right choice for every borrower. Depending on what you need the money for, one of these alternative options may be a better fit:

HELOC vs. cash-out refinance

Acash-out refinancereplaces your current home mortgage with a larger home loan. The difference between the original mortgage and the new loan is disbursed to you in a lump sum. The maindifference between a cash-out refinance and a HELOCis that a cash-out refinance requires you to replace your current mortgage, while a HELOC leaves your current mortgage intact; it adds an additional debt to your finances.

HELOC vs. reverse mortgage

With areverse mortgage, you receive an advance on your home equity that you don't have to repay until you leave the home. However, these often come with many fees, and variable interest accrues continuously on the money you receive. These are also only available to older homeowners (62 or older for a Home Equity Conversion Mortgage, the most popular reverse mortgage product, or 55 and older for some proprietary reverse mortgages).

HELOC vs. personal loan

Personal loansmay have higher interest rates than home equity loans, but they don't use your home as collateral. Like ahome equity loan, they havefixed interest ratesand disburse money in a lump sum.

FAQs about home equity lines of credit

Home equity lenders reviewed by Bankrate

Amerant
Amplify
Bank of America
Bethpage Federal Credit Union
BMO
Chase
Citibank
Citizens
Connexus Credit Union
Credit Union of Texas
Discover

Fifth Third Bank
Figure
Flagstar Bank
Frost Bank
Homeside
HSBC
KeyBank
Lower
Northpointe
PenFed Credit Union
PNC Bank

Police and Fire Federal Credit Union
Prosper
Quorum
Republic Bank and Trust
Regions Bank
Rockland Trust Bank
Spring EQ
TD Bank
U.S. Bank

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At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure our content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.

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Best HELOC Rates In June 2024 | Bankrate (2024)

Advertiser Disclosure

On this page

The Bankrate Promise

What are today's average HELOC rates?

National HELOC interest rate trends

No change in HELOC rates as Fed holds steady

How to get the best HELOC rate

Best home equity line of credit (HELOC) rates in June 2024

Comerica Bank

Bethpage Federal Credit Union

Bank of America

Third Federal Savings

BMO

TD Bank

Guaranteed Rate

Connexus Credit Union

Methodology

What is a home equity line of credit, or HELOC?

How does a HELOC work?

How do I qualify for a HELOC?

Pros and cons of HELOCs

PROS

CONS

HELOC vs. home equity loan

Other alternatives to a HELOC

HELOC vs. cash-out refinance

HELOC vs. reverse mortgage

HELOC vs. personal loan

FAQs about home equity lines of credit

Home equity lenders reviewed by Bankrate

Why trust Bankrate?