Best HELOC Lenders of 2021

U.S. Bank: Best Overall

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U.S. Bank is widely available, offers its HELOC with no closing costs or application fee, and enables you to borrow up to $1 million. Additionally, there are relatively low rates and a number of different term lengths available, which makes U.S. Bank a solid choice for many borrowers. However, in order to get the best rates, starting at 3.4% APR, you may need a credit score of at least 730 and/or a loan-to-value (LTV) ratio of 70% or less. 

There are no closing costs, but you may pay a prepayment penalty of 1% on the original credit amount, up to a maximum of $500, if you pay off the HELOC within two-and-a-half years. 

HELOC amounts range from $15,000 to $750,000 (up to $1 million in California), and repayment periods are available in 10-, 15-, or 20-year terms after a 10-year draw period. U.S. Bank charges an annual fee of up to $90 after the first year, unless you sign up for the bank’s Platinum Checking Package (then it’s waived, but you may have to pay a monthly maintenance fee on the checking account).

PenFed: Best Credit Union

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As a credit union, PenFed has generous and easy-to-meet membership requirements, as well as perks for all members, including discounts, a financial hardship center where you can receive assistance online, and more. Additionally, it provides a higher HELOC in terms of loan to value, and rates starting at 3.75% AP. PenFed also allows borrowers to take out a line of credit of up to 90% combined loan to value (CLTV)—a competitive rate, as the norm for most lenders is 85%. 

PenFed covers your closing costs, as long as you don’t pay off your line of credit within three years—otherwise you’ll have to repay them. Additionally, as long as you pay at least $99 in interest on your line of credit during the year, you won’t pay an annual fee (also $99). The repayment period is up to 20 years following a 10-year draw period. HELOC amounts range from $25,000 to $500,000. 

PenFed is a credit union that primarily serves U.S. military service members, their families, and veterans of all branches, but anyone can join if they become a member of one of PenFed’s affinity partners, such as the Coast Guard Auxiliary Association (CGAuxA), which may come with a small fee. A minimum deposit of $5 is also required to open a PenFed account.

Bank of America: Best for Low Fees

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Bank of America offers one of the best HELOCs, with no application fee, no closing costs (on up to $500,000), and no annual fee. As the second largest bank in the country, Bank of America offers HELOCs on properties in all 50 states, plus Washington, D.C. On top of that, if you want to convert a portion of your HELOC to a fixed-rate loan, there’s no fee for that, either. The only fee you face is a repayment penalty if you pay off your HELOC within three years ($450 plus any other taxes and fees). Rates aren’t as good as at some of the other lenders, starting at 4.32% APR, and increasing depending on where the property is located.

As a bonus, if you’re a member of the bank’s Preferred Rewards program when you apply for the loan, you’re eligible for a small discount on your interest rate (0.125% for Gold tier, 0.250% for Platinum tier, and 0.375% for Platinum Honors tier).

PNC Bank: Best for Small Home Improvements

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PNC Bank offers a minimum loan amount of $10,000, making it a good option for small home improvement projects. You also only pay interest on what you spend, and you have ongoing access to funds throughout the draw period. For well-qualified applicants with variable lines of credit from $5,000 to $24,999.99, though, APRs start at 8.05% and can be up to 9.05%.

PNC offers a fixed-rate option too, with APRs ranging from 7.19% to 7.89%. This option offers terms of between five and 30 years when you convert an amount during the draw period. However, each time you make a fixed-rate conversion, you must pay a $100 transfer fee.

There is no application fee with PNC, but there is an annual fee of $50. On top of that, if you have a PNC checking account, you can get a 0.25% rate discount if you set up automatic payments from that account.

TD Bank: Best for Large Home Improvements

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Even though TD Bank HELOCs are only available in 15 states on the East Coast, plus Washington D.C., the bank is on our list because there is no minimum draw, and you can access a credit line between $25,000 and $500,000, making it possible to complete large projects. Other benefits include the ability to lock in a fixed rate and connect your line of credit with your bank account. It’s even possible to use your HELOC for overdraft protection and access the credit line with a debit card. Depending on which state your property is located in, APRs can vary, but the starting rate is a competitive 3.54%.

There is an annual fee of $50 on lines of $50,000 or more, as well as an origination fee of $99, though. You may also pay an early termination fee of 2% of the HELOC amount (up to $450) if you pay off your balance within two years of the date it’s opened.

Frost Bank: Best Regional Lender

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If you live in Texas, you can get access to a HELOC from Frost Bank and take advantage of a product that comes with no application fee, no annual fee, and no prepayment penalty. Frost Bank’s HELOC lets you borrow from $8,000, up to 80% of the property value. On top of that, if you open a new Frost Plus account for banking, you can have your monthly service charge waived. There is also a 0.25% discount on rates, which start at 3.74% APR, when you sign up for automatic payments from your Frost checking or savings account.

However, in order to complete your loan, you need to go into a center in person, and the property securing the HELOC must be located in Texas. Your Frost HELOC is also set up with a 10-year draw period, during which you make interest-only payments, and then repay the loan within the following 20 year.