Top 10 cheapest HELOC lenders (July 2026)
Rates shown are for well-qualified borrowers (740+ FICO, 70% CLTV, primary residence). Your actual rate will vary. All figures verified against each lender's public product pages, July 2026.
| Rank | Lender | Advertised APR | State availability | Best for |
|---|---|---|---|---|
| 1 | Bank of America (intro) | 5.240% × 6 mo, then ~8.15% | All 50 states | Borrowers paying down within 6 months |
| 2 | Third Federal Savings | 6.240% (Prime -0.51%) | 28 states + DC | Long-term holders in eligible states |
| 3 | Figure (fixed rate) | 6.55% but with 4.99% origination | All 50 states | Borrowers who want speed + fixed rate |
| 4 | PenFed Credit Union | 6.99% | All 50 states | Anyone (open membership) |
| 5 | Bethpage FCU | 7.00% | All 50 states (NY-based) | Anyone — $5 to join |
| 6 | Connexus Credit Union | 7.10% | Most states (excludes AK/HI/MD) | Midwest borrowers |
| 7 | US Bank | 7.15% w/ autopay | Most states | Existing US Bank customers |
| 8 | TD Bank | 7.25% | 15 East Coast states | East Coast residents |
| 9 | Citizens Bank | 7.35% | 19 states | Northeast residents |
| 10 | Chase | 7.45% (relaunched 2025) | Most states, ex SC/HI/AK | Existing Chase relationship |
The Bank of America intro rate trap
BofA's 5.240% headline rate is legitimate — for the first 6 months. Then it resets to Prime + Margin, which lands at about 8.15% for typical borrowers as of July 2026. If you pay the balance down to zero within 6 months, you get the best deal on the market. If you carry a balance longer, the reset means BofA is one of the more expensive HELOCs by year 2.
Run the math: on $50K borrowed and repaid over 12 months (6 at 5.24%, 6 at 8.15%), the average rate is roughly 6.70%. On $50K held for 5 years (6 mo at 5.24%, 54 mo at 8.15%), the effective rate is 7.85%. The intro isn't magic — it just shifts benefit to short-term borrowers.
Third Federal — best long-term rate, but geography-limited
Third Federal's 6.240% (Prime -0.51%) is the lowest sustainable HELOC rate from a mainstream lender. No origination, no annual fee, no closing costs. Their catch: only available in 28 states + DC. If you're in a state they serve — CA, FL, PA, OH, NY, VA and 22 others — they're almost always the best long-term choice for a primary-residence HELOC.
Not available in: AL, AK, HI, ID, KS, KY, LA, ME, MS, MT, ND, NM, OK, SD, TN, VT, WV, WY, WI, and a few others. If your state is one of these, skip to the credit union options.
Figure — cheapest fixed rate, but the origination fee is a lot
Figure offers a fixed-rate HELOC starting at 6.55%. Fixed is unusual on a HELOC — most are variable. Advantage: rate certainty. Disadvantage: they charge 0.00%–4.99% origination depending on your state and profile. On a $50K line with 3% origination, you're paying $1,500 upfront. Amortized over 5 years, that adds ~60 basis points to the effective rate — so a 6.55% Figure loan really costs more like 7.15% all-in vs. a 7.15% bank HELOC with no origination.
Credit unions — often the cheapest, if you qualify
Credit unions consistently price 25–50 bps below big-bank competitors. Two paths:
- Regional credit unions — Iowa, North Dakota, and South Dakota credit unions offer the lowest state averages nationally (6.90%). If you're a resident, check your local ones first.
- Open-membership credit unions — PenFed, Bethpage, Alliant, NASA FCU all accept members from all 50 states. PenFed requires no employer affiliation. Bethpage requires a $5 savings deposit.
What "cheapest" actually means for your situation
The lender with the lowest advertised rate isn't always your cheapest option. Depends on:
Your state
Third Federal isn't available in half of states. Fintechs skip Alaska and Hawaii. Investor properties knock out most major banks. Match lender footprint to your state first, then compare rates within that pool.
Your CLTV
Rates jump above 80% CLTV. Some lenders won't lend above 85%. If you're at 82% CLTV, your "cheapest" lender may be different than at 65% CLTV.
Your FICO tier
720+ opens the best pricing at every major bank. 680–719 knocks you into a higher pricing tier at most banks but is fine at most credit unions. Below 680 significantly narrows the field.
How long you'll hold the balance
Short-term borrowers (paying down within 12 months): BofA intro rate wins. Long-term (5+ years carrying balance): Third Federal or Bethpage FCU win. Middle (2–3 years): PenFed usually wins.
Whether you want fixed or variable
Most HELOCs are variable. If you want fixed for the whole balance, Figure is the primary option. Some banks (US Bank, PNC, TD Bank) let you convert a portion to fixed mid-draw, which is often a better middle-ground.
What NOT to do
- Don't apply based on advertised rate alone. Every lender's headline rate is for their strongest borrower profile. Get a real quote at your actual FICO and CLTV.
- Don't skip the credit unions. The 3-minute annoyance of joining PenFed can save $2,000+ over 5 years.
- Don't ignore the annual fee. $75/year × 10-year draw period = $750, roughly equivalent to 15 bps on rate.
- Don't over-apply. Every HELOC application is a hard pull. Do soft-pull pre-qualification with 3 lenders, then hard-pull the winner.
How to actually get the cheapest rate for your specific situation
Send me your home value, mortgage balance, rough FICO, and state. I'll come back within one business day with the 3 lenders that would give you the best rate — often including one you wouldn't have thought to consider.
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