Best Line of Credit (HELOC) Interest Rates

The rates Home equity lines of credit are getting higher and higher and will continue next year as well. If you do not have one already, this is a good time to lock in one if you qualify!

A few months back, a lot of lenders were offering HELOCs with rates of less than 4%. Now only a few of them have deals that are good, and most borrowers will pay a minimum of 4.25%.

The HELOC’s are based on the prime rate — the interest rate banks charge the best commercial customers. This is currently at 3.25%.

The days when we got HELOC rates of Prime rate minus something are gone. Most of the home equity lines of credit are priced around prime plus 1%.

But if you have enough equity in your home, HELOC’s are the best loan you get with the cheapest interest rates.

Here are some of the better deals around:
US Bank, which serves 24 states nationwide, has rates as low as 3.99% and as high as 9.25% in parts of Arizona, California and Nevada – states that have suffered steep declines in home prices. You’re also tagged with a $90 yearly fee.

Third Federal Savings & Loan is charging 3.25% for homeowners in 18 states from Oregon to Florida for loans up to $49,999. For loans of $50,000 – $150,000, you pay only 2.99%. They used to do business in California…not anymore! There’s no annual fee.
BB&T Company, headquartered in Winston-Salem, N.C. with 1,500 financial centers in 11 southeastern states and Washington, D.C., charges 4.25% with no fee and a $5,000 minimum.
Nationwide Bank, owned by Nationwide Insurance, is charging 4.50% with no annual fee.
Viewpoint Bank based in Plano, Texas, with 39 branches serving the north part of the state, offers 4.5% with no annual fee and a $4,000 minimum.
First Tennessee Bank, owned by First Horizon National Company, with branches in Arkansas, Georgia, Mississippi, Virginia and Tennessee, charges 4.25% with a $5,000 minimum and a $50 annual fee.

To qualify for one of these HELOCs you need:
A credit score of around 660 or more, with the exception of Nationwide Bank and Third Federal Savings, which require a minimum score of 720.

To retain 20% equity in your home after the line of credit is added on to the balance of your primary mortgage.