Skip to content

Best HELOC Lenders of 2023

U.S. Bank is the best HELOC lender with flexible terms and range of loans

We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more.

If you are considering a home improvement project, a home equity line of credit (HELOC) can help you fund it by tapping into the equity you have in your home. HELOCs are flexible, allowing you to borrow as needed, up to your credit limit. It’s similar to having a credit card but secured by the equity in your home, making it a type of second mortgage.

With the best HELOC lenders, you can usually find a competitive rate and borrow more than you might be able to with an unsecured personal loan or credit card. Your credit line is based, in part, on the equity available in your home, so if you have a lot of value built up, a HELOC might be a good choice. We reviewed more than a dozen lenders and considered low rates and fees, repayment terms, and more to find the best HELOCs available for your home improvement projects.

Best HELOC Lenders of 2023

Best Overall : U.S. Bank

us bank logo
  • Amount: $15,000 to $750,000 (or $1 million in California)
  • Annual fees: Up to $90 (can be waived)
  • Repayment term: 10, 15, or 20 years
Why We Chose It

With its wide range of loan amounts, flexible terms, and minimal borrowing costs, U.S. Bank is our top choice for HELOCs.

Pros & Cons
  • No closing costs

  • Competitive APRs

  • Penalty of up to $500 if paid off within 2.5 years

  • Annual fee of $90 if you’re not a bank member


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 8.80% APR, you may need a credit score of at least 730 and/or a loan-to-value (LTV) ratio of 60% 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 2.5 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).

Best Credit Union : PenFed

PENFED Credit Union
  • Amount: $25,000 to $500,000
  • Annual fees: Up to $99 (can be waived)
  • Repayment term: Up to 20 years
Why We Chose It

While many lenders only let you borrow up to 80% of your home's value with a HELOC, PenFed lets you borrow up to 85% and offers a competitive APR.

Pros & Cons
  • Lets you borrow up to 85% CLTV

  • Ways to avoid fees

  • Penalty if paid off in three years


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 7.875% APR. PenFed also allows borrowers to take out a line of credit of up to 85% combined loan to value (CLTV)—a competitive rate, as the norm for most lenders is 80%.

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.

Best for Low Fees : Bank of America

Bank of America
  • Amount: $25,000 to $1 million
  • Annual fees: $0
  • Repayment term: Minimum 1 year
Why We Chose It

Borrowers can expect minimal borrowing costs with a HELOC from Bank of America, which is why it's our top pick for low fees.

Pros & Cons
  • No application fee, closing costs, or annual fee on lines up to $1,000,000

  • Integration with Bank of America’s Preferred Rewards

  • Closing must be done at a financial center


Bank of America offers one of the best HELOCs, with no application fee, no closing costs (on up to $1,000,000), 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. Rates aren’t as good as at some of the other lenders, starting at 8.05% 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).

Read the full review of Bank of America.

Best for Small Home Improvements : PNC Bank

PNC Bank logo
  • Amount: $10,000 to $1,000,000
  • Annual fees: $50
  • Repayment term: 5 to 30 years
Why We Chose It

PNC Bank offers HELOCs as low as $10,000, making it a good choice if you have a small home renovation project to complete.

Pros & Cons
  • Low minimum loan amount

  • Ability to switch to a fixed rate

  • Annual fee

  • Fee to convert to fixed rate


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 $10,000 to $1,000,000, though, APRs start at 7.49% and can be up to 13.60%.

PNC offers a fixed-rate option too. 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.

Best for Large Home Improvements : TD Bank

TD Bank: America's Most Convenient Bank
  • Amount: $25,000 to $500,000
  • Annual fees: $50
  • Repayment term: 5 to 30 years
Why We Chose It

Those working on a large home improvement project may want to consider a HELOC from TD Bank, with amounts ranging from $25,000 to $500,000.

Pros & Cons
  • High customer service rating

  • No setup fees for locking in a fixed rate

  • Ability to connect your HELOC to your TD Bank account

  • More fees than other lenders

  • Available in only 15 states, plus Washington D.C.


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 7.84%.

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.

Best Regional Lender : Frost Bank

Frost Banking Investments Insurance
  • Amount: $8,000 to 80% of property value
  • Annual fees: $0
  • Repayment term: 20 years
Why We Chose It

Frost Bank offers a wide range of loan amounts and competitive APRs on HELOCs for Texas residents.

Pros & Cons
  • No fees on your loan

  • Discount for automatic payments from a Frost account

  • Loan amounts of up to 80% of your home’s value

  • Only available on properties located in Texas

  • Must complete closing in person


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 8.74% 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 years.

Final Verdict

Versatility helped U.S. Bank earn the top spot on our list. It combines a broad range of loan amounts and terms with competitive rates, making it an option worth exploring for most borrowers. Unlike some other lenders we reviewed, U.S. Bank also is available nationwide. Some of the other lenders on our list might fill more specific needs, so be sure to research your options thoroughly.

Compare Providers

Best HELOC Lenders
Lender Amounts Annual Fees Repayment Term
U.S. Bank Best Overall $15,000 to $750,000 ($1 million in California) Up to $90 (can be waived) 10, 15, or 20 years
PenFed Best Credit Union $25,000 to $500,000 Up to $99 (can be waived) Up to 20 years
Bank of America Best for Low Fees $25,000 to $1 million $0 1 to 20 years
PNC Bank Best for Small Home Improvements $10,000 to $1,000,000 $50 5 to 30 years
TD Bank Best for Large Home Improvements $25,000 to $500,000 $50 5 to 30 years
Frost Bank Best Regional Lender $8,000 to 80% of property value $0 20 years

Frequently Asked Questions

  • What Is a HELOC?

    A HELOC is a line of credit based on how much equity you have in your home. Your HELOC works a lot like a credit card, with you “freeing up” more room as you make payments. But it’s different from a credit card in that it has a draw period, during which you take money out as needed. After the draw period is over, though, you begin making regular payments.

  • How Does a HELOC Work?

    In general, HELOC lenders base your credit amount on your combined loan-to-value (CLTV), which is the total of all secured loans on the property, including the HELOC you are applying for, divided by the appraised value of the property. For example, a lender may limit you to 85% CLTV. If your home is worth $250,000, 85% equals $212,500. So if you have 50% equity in your home at $125,000, you can only borrow a HELOC up to $87,500—the difference between the total CLTV and the amount of your equity.

  • What Is a Good Interest Rate on a HELOC?

    Interest rates for HELOCs typically will be higher than the going rates for mortgages. Our top choice overall, U.S. Bank, offers rates of about 8.80% for those with good credit. Other lenders we reviewed offer rates ranging from less than 4% to more than 13%.

  • What Are the Disadvantages of a HELOC?

    A HELOC lowers the equity you have in your home because you are borrowing against that equity. Perhaps the biggest risk, though, is that failing to repay the line of credit ultimately could result in the lender foreclosing on your home. Another drawback is that some lenders may charge a penalty if you pay off the debt too early.


We determined our list of the best HELOCs by comparing over 18 different lenders. We looked at fees, repayment terms, and more to find the best HELOC options for homeowners. Our recommendations take into account that borrowers have different financial situations and needs and that not all HELOCs meet those priorities. Not every recommendation is right for every borrower, so consider all your options before applying.

Woman analyzing blueprint for her new home interior

eclipse_images/Getty Images

Article Sources
Related Articles