Best home equity line of credit (HELOC) lenders for December 2024

Bethpage offers the unique option to convert some or all of a variable-rate HELOC to a fixed-rate loan without a fee. With this option, you can choose between five-, 10- and 20- year repayment terms.

Borrowers who’d like the option of a fixed rate HELOC in the future; those who hate fees.

• Incredibly low introductory rates for the first year.
• Zero fees and closing costs.
• You can convert some or all of your variable-rate HELOC to a fixed rate with no fee.

• You must become a member of the credit union by opening a savings account.
• If you close your HELOC within 36 months, you'll need to reimburse Bethpage the closing costs.

BMO markets HELOCs with no application fees and low-to-no closing costs.

Borrowers who dislike paying upfront fees, and who love low rates.

• This lender offers some of the most competitive HELOC rates available.
• BMO's HELOC has low fees.
• Get a 0.25% interest rate discount for setting up autopay from a qualifying BMO account.

• You’ll need a high credit score, typically above 650. 
• If you close your account within three years, the bank might charge a fee to recoup closing costs.
• There’s a $75 fee every time you convert a fixed-rate lock option after closing.

While PenFed has a history of serving service members, it’s now largely open to anyone who’ll open a $5 savings account.

Members of the military/federal employees (a PenFed specialty); borrowers who need a large credit line; borrowers who don’t mind a digital experience (depending on where you live).

• Quick closings.
• You’ll get a break on certain fees, as PenFed pays most of the closing costs.
• High line of credit amount (up to half a million dollars).

• If you close your account within 36 months, you’ll be on the hook for the closing costs PenFed paid on your behalf. 
• There’s also a $99 annual fee (waived if you paid $99 in interest in the previous year), and you may have to pay taxes in certain states and appraisal fees if an appraisal is required.
• Limited number of branches.

With Third Federal, you could qualify for either a rate match or a $1,000 check if you find a lower rate with a competitor.

 Borrowers who want a low rate, and who value the peace of mind that comes with a rate guarantee. 

• This lender offers some of the lowest HELOC rates available.
• You could qualify for a rate match or a $1,000 check if you find a lower rate with a competitor.
• Choose between fixed-rate or adjustable-rate terms.

• Only available in 27 states. Texas and Nevada are holes in its footprint.
• There’s a $95 annual fee for as long as you have a HELOC with Third Federal (this is waived for the first year, however).
• $300,000 cap on credit line, less than other lenders.

Figure promises an easy online application process with approval in five minutes and funding in as few as five business days.

Borrowers who need the money quickly; those who like a fixed interest rate and predictable payments.

• There’s a fixed interest rate on the original lump sum, which means the payments won’t change over the life of the loan unless you make additional draws.
• Fast closing times.
• No appraisal fees, annual fees, late fees or prepayment penalties.

• Not available in all states. New York and West Virginia are among the holes in its footprint.
• There’s an origination fee of as much as 4.99 percent.
• Somewhat confusing structure: fixed interest rate on the initial lump sum draw; variable rate on subsequent draws.

There are no closing costs on U.S. Bank’s home equity loans, which could save you thousands of dollars.

Borrowers who need the money quickly, and who have strong credit.

• No closing costs.
• A 0.5 percent discount for those who make automatic payments from U.S. Bank checking or savings accounts.
• Convert your HELOC to a fixed-rate loan at any time.

• Annual fee (though there are ways to waive it).
• Oriented towards borrowers with high credit scores: at least 660.
• Payments include principal and interest from the beginning (depending on credit score).

There aren’t many lenders offering this type of secured credit card.

Borrowers who value credit card rewards and are willing to try a new product.

• It combines a credit card with a HELOC, giving you 2 percent cash back.
• You won’t pay an origination fee, nor for an appraisal, annual fees or a prepayment penalty.
• Flexible underwriting requirements.

• It’s a new product, and can be a bit confusing. Aside from variable-rate interest, the Aven HELOC card comes with some fees. If you cash out and enroll in the fixed repayment plan, you’ll pay a one-time fee of either 2 percent, 2.5 percent or 4.9 percent, depending on your card agreement. The same fee structure applies to balance transfers.
• There's a $29 fee for any late payments. 

Quorum Federal Credit Union offers variable-rate HELOCs on both primary residences and investment properties; many  lenders are residential-only. The differences between the two include the minimum APR, the amount you can borrow and the repayment schedule.

Borrowers who want to tap equity from an investment property.

• Quorum’s HELOCs come with relationship discounts. If you have a Quorum checking account and maintain a monthly balance of $5,000, you get a 0.25 percent rate discount. If you have a Quorum CD with at least $50,000 in it, you can get an additional 0.5 percent rate discount.
• You won’t be charged a fee if you pay off the principal on your HELOC before the end of your term.
• Offers interest-only loans.

• Quorum Federal Credit Union charges a $495 origination fee and a $100 processing fee.
• No branches.
• You’ll need to join the credit union.