Best HELOC interest rates of November 2023

Autopay discounts are common with many lenders offering HELOCs, but Bank of America offers multiple rate discounts besides autopay to help you save. Borrowers can get an autopay discount of 0.25%, an initial withdrawal discount of up to 1.50% and a loyalty discount of up to 0.75% through Bank of America’s Preferred Rewards program.

The initial withdrawal discount you receive is based upon the amount you withdraw. For instance, borrowers who withdraw $10,000 will receive a 0.10% interest rate discount, those who withdraw $20,000 will receive a 0.20%—and so on up to 1.5%.

The loyalty discount you receive will also vary depending on your Bank of America Preferred Rewards membership tier—the higher your Preferred Rewards tier, the larger the discount. So Gold tier Preferred Rewards members could get a loyalty discount of up to 0.125%, while Platinum tier members could get a discount of up to 0.250%.

Borrowers also benefit from no application fees, annual fees or closing costs, which could save you thousands of dollars.

• Interest rates: Above national average (with introductory rate).
• Variable to fixed rate: If you opt for a HELOC from this lender, you can choose from a variable or fixed rate initially, or switch from a variable to a fixed rate.
• Loan terms: Bank of America offers a 30-year term for its HELOCs, with a 10-year draw period and 20-year repayment period.
• Perks or rate discounts: With minimal fees and multiple discounts, including an autopay discount of 0.25%, initial withdrawal discount of up to 1.50%, and a loyalty discount of up to 0.275%, a Bank of America HELOC may be a good option if you want to keep borrowing costs low.
• Max CLTV ratio accepted: For the majority of states, Bank of America doesn’t disclose a maximum CLTV, though the max CLTV in TX is 80%. This lender indicates it typically lets you borrow up to 85% of your home’s current value, minus your current mortgage.
• Min. credit score: Bank of America doesn’t disclose its credit score requirements for HELOCs, but many lenders require that borrowers have good credit to qualify.

With a HELOC from Connexus, you’ll get access to a relatively low variable introductory rate. Compared with what many lenders offer, this makes Connexus a good option for borrowers who want to keep interest costs down. After the intro period, however, rates will go up.

You’ll need to be a member to borrow from Connexus. And while membership is offered to individuals in several groups and geographic locations, there are restrictions on who can become a member. Still, if you’re eligible, Connexus’ comparatively low HELOC rates make it worth considering.

• Interest rates: Below national average (with introductory rate).
• Variable to a fixed rate: There is no option to switch from a variable-rate to a fixed-rate HELOC with Connexus.
• Loan terms: Connexus HELOCs come with 30-year terms, with draw periods of 15 years and repayment periods of 15 years.
• Perks or rate reductions: Unlike many lenders, Connexus doesn’t offer an autopay discount with its HELOCs. That said, its rates are pretty low to begin with, so you could end up with a lower rate through this lender than you’d get with another lender, even with an autopay discount.
• Max CLTV ratio accepted: Connexus has a max CLTV of 80%.
• Min. credit score: This lender doesn’t disclose its minimum credit score requirements to qualify for a HELOC.

Flagstar’s HELOC offers a variable rate that might be higher than most introductory rates on this list. However, the rates are lower compared to what the same lenders offer after the intro period is over.

This lender also offers several other benefits, like a fairly low minimum line amount of just $10,000 and a closing cost discount if you keep your HELOC open for at least 36 months.

• Interest rates: Below national average (variable).
• Variable to fixed rate: Flagstar doesn’t offer the option to switch from a variable-rate to fixed-rate HELOC.
• Loan terms: This lender offers a 30-year HELOC term, including a 10-year draw period and 20-year repayment period.
• Perks or rate reductions: An autopay discount of 0.50% is available with a Flagstar HELOC.
• Max CLTV ratio accepted: The max CLTV ratio accepted is 89.9%.
• Min. credit score: Like many other lenders, Flagstar doesn’t disclose its credit score requirements for HELOCS, though you’ll likely need good credit to qualify.

Pentagon Federal Credit Union (PenFed) was established in 1935, and today it has more than $36.6 billion in assets. With over 2.8 million customers, it’s one of the largest federal credit unions in the U.S. While you’ll need to become a member to access PenFed’s banking and loan products, including mortgages and HELOCs, membership is open to everyone.

PenFed offers borrowers the flexibility to switch from a variable- to a fixed-rate HELOC, and it will pay most of the closing costs associated with your HELOC. Given that closing costs are typically around 2% to 5% of your total loan, this savings could be significant depending on how much you borrow.

While there are some perks with PenFed HELOCs, its rates are slightly higher than competitors, no autopay discount is available, and the minimum credit score requirement is 700. An annual fee of $99 also applies at the end of the year if you didn’t pay $99 worth of interest that year.

• Interest rates: Below national average (variable).
• Variable to fixed rate: You can switch from a variable-rate HELOC to a fixed-rate option with PenFed.
• Loan terms: This lender offers a pretty standard 30-year HELOC term, with a 10-year draw period and a 20-year repayment period.
• Perks or rate discounts: While PenFed doesn’t offer rate discounts, borrowers can get a closing cost credit for its HELOCs. This is a valuable perk that could save you thousands of dollars.
• Max CLTV ratio accepted: PenFed’s maximum CLTV ratio is 80%, which is lower than some competitors offer.
• Min. credit score: The minimum credit score required for a PenFed HELOC is 700.

Truist (formerly SunTrust) has a competitive HELOC offering featuring fair interest rates, and quick closings are available. While many other lenders aren’t forthcoming about how long it takes to close on their HELOCs, Truist indicates that it takes around 30 to 35 days to close on its HELOCs from the day you apply. Depending on the lender you work with, you may not reach the closing table for 60 days, so Truist’s closing time is relatively short.

Borrowers also benefit from lower-than-average introductory APRs with a Truist HELOC. Truist’s intro period is 12 months which is fairly long compared with competitors that often have intro periods of just 6 months.

• Interest rates: Below national average (with introductory rate).
• Variable to fixed rate: With a Truist HELOC, you can switch from a variable rate to a fixed rate if you choose.
• Loan terms: This lender offers a pretty common repayment term of 30 years, with a 10-year draw period and a 20-year repayment period.
• Perks or rate discounts: While Truist offers a competitive introductory rate, it doesn’t offer any rate discounts.
• Max CLTV ratio accepted: Does not disclose.
• Min. credit score: Truist doesn’t mention a specific minimum credit score requirement, though it indicates having good credit will increase your chances of getting approved for a HELOC.