Best HELOC Lenders of March 2025

Why Choose a HELOC in 2025?

With rising home values and higher renovation costs, HELOCs offer valuable financial flexibility. While personal loans and credit cards were once common choices for major expenses, HELOCs now offer rates as low as prime + 1% – significantly lower than unsecured options, averaging 8-15% APR. Our comparison tool helps you find the best HELOC for your borrowing needs.

Understanding HELOCs

Home Equity Lines of Credit (HELOCs) are secured credit lines backed by your home's equity, typically offering variable rates based on the prime rate. Like credit cards, they provide revolving access to funds but with much lower rates due to the home collateral. While traditional loans require taking all funds simultaneously, HELOCs let you borrow only what you need during a flexible draw period.

Key Benefits of HELOCs

HELOCs offer rates starting around 4-7%, significantly undercutting personal loans and credit cards—potentially saving thousands annually on large expenses. These secured credit lines provide flexible access to funds for up to 10 years with interest-only payment options. They typically feature low or no annual fees, tax-deductible interest for home improvements, and convertible fixed-rate options.

How to Choose the Best HELOC

When selecting a HELOC, look beyond the introductory rate, as rates are variable and will change with the market. Consider draw period length, repayment terms, and rate caps. Seek lenders without annual fees, inactivity fees, or early closure penalties. Verify rate discounts for autopay or existing relationships and ensure transparent fee structures and conversion options for fixing rates on some or all of your balance.