Truist HELOC at a glance

Fixed or variable rate: Both

How to withdraw funds: Unclear

Origination fee: Unclear but possible

Loan-to-value ratio: Unclear

Time to fund: 30 to 35 days

Truist’s home equity line of credit, or HELOC, allows borrowers to choose a fixed interest rate or variable rate and offers flexibility around closing costs. But its HELOCs are only available in some states.

Pros

• Fixed or variable rates
• Option to avoid closing costs

Cons

• Need excellent credit for lowest rates
• May take more than a month from application to closing
• Only available in some states

5 things to know about a Truist HELOC

Here’s a look at some important features of Truist’s HELOC.

1. Fixed and variable rate options

Each time you take a draw from your Truist HELOC, you can choose a fixed interest rate or variable interest rate for that portion of the loan.

Truist’s minimum draw is $5,000. You can choose a fixed rate with a 5-, 10-, 15- or 30-year repayment period. There’s a $15 setup fee, and you can have up to five rate draws open at once. 

Having the freedom to choose your rate type with each draw gives you the flexibility to potentially take advantage of any interest rate fluctuations that might work in your favor.

2. Ability to advance closing costs and waive reimbursement

A Truist HELOC does have closing costs. You can pay them upfront, but the lender also says you can “advance” most (or possibly all) of the closing costs — meaning Truist will pay them on your behalf. The catch is that you must keep your account open for at least three years. Otherwise, you’ll have to reimburse Truist for the advance.

Also keep in mind: Advancing your closing costs can affect your interest rate. And this option may not be available in all states or for loan amounts greater than $500,000.

3. Property type limits

Truist’s HELOCs are only available for primary residences, second homes or condos. They must also be owner-occupied, single-family homes and located in a state where the product is offered.

Borrowers can’t use Truist’s HELOC for manufactured or mobile homes, investment homes or cooperatives. 

4. Annual fees may apply

Truist HELOCs may be more costly for some borrowers than others. A $50 annual fee applies to HELOCs in Alabama, Arizona, California, Florida, Georgia, Indiana, Kentucky, New Jersey and Ohio.

5. Only available in certain states

Truist’s HELOC is only available for homes located in one of the 18 states and Washington, D.C., where the product is offered.

Does Truist have good HELOC rates?

Truist’s rates are fairly competitive. But to be eligible for its lowest advertised rates, you must have excellent credit. Also, some competitors offer HELOCs with lower advertised interest rates or lower introductory rates.

Who is a Truist HELOC good for?

Truist’s HELOC may be a good option for people who want to tap into their home equity with the choice between fixed and variable interest rates. The option of advancing your closing costs may also make this a good choice.

How to apply for a Truist HELOC

Applying for Truist’s HELOC is straightforward. But the underwriting process may take some time.

You can apply online in about 20 minutes, contact a Truist call center or visit a local Truist branch. Truist won’t pull your credit during this initial part of the application process, but it will run a credit check once you submit your application.

If you’re approved, a representative will call you to discuss the credit decision and request any additional information.

Gathering the following information ahead of time can help streamline your application process:

• Your contact information, phone number and Social Security number
• Your employment and address history for the previous two years
• Information about your income, debt, personal obligations and other financial history
• Property details, purchase information and mortgage lien information for your collateral property

Not sure if Truist is right for you? Consider these alternatives.

• Third Federal: This savings and loan offers a “lowest-rate guarantee” program.
• Bank of America: This major national bank offers a HELOC with no application fee, closing costs, annual fees or charges for converting to a fixed-rate option.

This offer is no longer available on our site: Aven Home Equity Credit Card

Third Federal HELOC at a glance

• Fixed or variable rate: Variable
• How to withdraw funds: Checks and debit cards
• Origination fee: None
• Loan-to-value ratio: Up to 80%
• Time to fund: Unclear

Third Federal Savings & Loan’s home equity line of credit, or HELOC, offers people the ability to access their home equity with competitive rates and low fees. However, its HELOCs are not available in every state.

Pros

• Lower rates than some competitors
• No closing costs, minimum draw requirements or prepayment penalty
• Lowest Rate Guarantee program

Cons

• Annual fee (waived first year)
• Limited availability
• Eligibility requirements are not disclosed

3 things to know about a Third Federal HELOC

Here’s a look at some of the features you’ll find with a Third Federal HELOC.

1. Third Federal offers a Lowest Rate Guarantee program

Third Federal offers HELOCs with interest rates that it says are typically about 0.50% lower than its competitors’ rates. The bank offers a Lowest Rate Guarantee that says if you find a HELOC with a lower interest rate than Third Federal’s, it will either beat the rate or pay you $1,000.

2. Fees are relatively low

Except for a $65 annual fee — which is waived in the first year — a Third Federal HELOC doesn’t come with additional fees. There are no closing costs, and you won’t pay any penalties if you decide to make extra payments or pay off your outstanding balance early.

3. Flexible loan terms

The minimum credit line on a Third Federal HELOC is $10,000, and the maximum is $200,000. This range makes it useful for a wide variety of borrowers. The 30-year repayment period may also help people who want to keep their monthly payments low. Since there are no prepayment penalties, you can also make larger payments and pay your balance off sooner.

How long is a Third Federal HELOC?

The Third Federal HELOC offers a 10-year draw period and a total repayment period of 30 years. This means you can repeatedly draw funds up to your credit limit during the first 10 years from the time you open your HELOC. Once the draw period is over, you switch over to the repayment period and can no longer access the credit line.

Who is a Third Federal HELOC good for?

Because of its competitive interest rates and low fees, a Third Federal HELOC may be good for a homeowner who is looking for a low-cost way to tap into their home equity. It may also be attractive to people who are considering other options such as a home repair loan, which may have higher interest rates, or a cash-out refinance, which may have closing costs and other fees.

How to apply for a Third Federal HELOC

While you can complete your Third Federal HELOC application online, when it’s time to close on your loan, you’ll need to visit a Third Federal branch or have a representative from a local title company come to your home. Third Federal does not disclose its minimum eligibility requirements and does not provide a list of required documentation, which may make the process somewhat inconvenient for some borrowers.

You can complete your HELOC application online and will need to provide personal information and details regarding your assets, income, expenses and the property securing the loan.

Not sure if Third Federal is right for you? Consider these alternatives.

• Figure: This online lender offers funding in as little as five days if you need quick access to funds.  
• Aven Home Equity Credit Card: This unique option combines features of a HELOC and a credit card and offers flexible repayment options.

TD Bank HELOCs at a glance

• Fixed or variable rate: Variable
• How to withdraw funds: Checks, Visa card, transfers to personal checking or savings account
• Origination fee: Yes — $99
• Loan-to-value ratio: Varies
• Time to fund: Unclear

TD Bank offers home equity lines of credit, or HELOCs, with no minimum draw requirement and the ability to borrow only what you need, up to your credit limit.

Pros

• Option to lock in a fixed rate
• Rate discount opportunity for TD Bank checking and savings customers
• No minimum draw required

Cons

• Multiple fees
• An appraisal may be required
• In-person closing required

4 things to know about a TD Bank HELOC

Let’s take a look at some of the key features of a TD Bank HELOC.

1. Ability to lock in rates while continuing to draw from your HELOC

You can choose to lock in a fixed interest rate on all or a portion of your outstanding HELOC balance at any time during the draw period or the repayment period. If you do this during the draw period, you can continue using your HELOC to access your home equity, up to your credit limit.

There are no setup fees with this option, either. This can be a benefit for borrowers looking for interest-rate and payment stability, particularly in a rising-rate environment.

TD Bank allows you to lock in a fixed rate on a minimum of $5,000 at a time, and you can have up to three fixed-rate options outstanding at once. The maximum term of your fixed rate cannot extend beyond your repayment period.

2. Multiple fees can increase total borrowing costs

A TD Bank HELOC has multiple fees.

• $50 annual fee for amounts starting at $50,000
• Early termination fee of 2% of the outstanding principal balance, up to a maximum of $450, if you pay off your HELOC and close your account within 24 months from the date you opened it
• A $99 origination fee when you initially take out your HELOC
• Closing costs for HELOCs with credit lines greater than $500,000 as well as for HELOCs on co-ops and investment properties
• A mortgage discharge fee may apply if you use your HELOC to refinance a home equity loan, line of credit or mortgage

3. There’s no minimum draw, but a minimum credit line is required

TD Bank offers HELOCs starting at a minimum of $25,000. But it doesn’t require a minimum draw if you only want to access a little bit of that at once. This may save you on interest charges by allowing you to borrow only what you need, when you need it, up to your credit limit.

4. Overdraft protection and rate discounts available

TD Bank also offers a product called TD EquityAccess PLUS, which provides all the same features and interest rates as its HELOC as well as an option to add overdraft protection during the application process. Some borrowers may appreciate having access to this additional protection.

It’s also worth noting that TD Bank offers rate discounts to its existing banking customers. It currently advertises a 0.25% rate discount if you set up (or already have) a TD Bank checking account.

Who is a TD Bank HELOC good for?

The flexibility to draw funds when you need them makes TD Bank’s HELOC attractive to borrowers who have equity in their homes and want to access money for projects without having to take out separate home improvement loans. The low origination fee can also make this HELOC an attractive option for those who want to access their home equity with more flexible terms than the fixed terms in a cash-out refinance.

How do I get a TD Bank HELOC?

Although there are several steps involved in the application process, TD Bank is clear about what to expect. You can start the application process online but will need to visit a TD Bank branch to close on your loan.

TD Bank HELOCs are available on one- to four-family primary and secondary residences. Exclusions include RVs, boats, mobile homes as well as homes that are for sale, under construction or located on leased land.

Lines of credit greater than $500,000, co-ops and properties with values greater than $2.5 million may be subject to additional terms and conditions.

As you prepare to apply for a TD Bank HELOC, it may be helpful to have the following documents on hand:

• Paystubs from the past 30 days
• W-2 forms from the past two years
• Tax returns from the past two years (if you’re self-employed)
• Photo ID
• Proof of homeowners insurance (and flood insurance, if needed)

Not sure if TD Bank is right for you? Consider these alternatives.

• Bank of America HELOC: This national bank offers a HELOC with no application fee, no closing costs, no annual fees and no fee to convert to a fixed-rate option. 
• Figure: This online lender can help you skip an in-person appraisal.

This offer is no longer available on our site: Aven Home Equity Credit Card

A U.S. Bank HELOC is good to consider for current U.S. Bank customers since you may qualify for multiple discounts. But you may be able to find lower rates elsewhere.

U.S. Bank HELOCs at a glance

Fixed or variable rate: Variable, with the opportunity to convert to fixed

How to withdraw funds: Checks, ATM withdrawals, Visa card, transfer to U.S. bank checking account, in-person withdrawals from U.S. Bank branch

Origination fee: None 

Loan-to-value ratio: Unclear

Time to fund: Generally three business days after closing 
U.S. Bank is one of the largest banks in the United States. The company offers home equity lines of credit, or HELOCs, with amounts between $15,000 and $750,000 of your home equity (up to $1 million in California).

Pros

• Flexible repayment terms
• Ability to convert to a fixed interest rate
• Good range of HELOC loan amounts

Cons

• Early closure fee during the first 30 months
• Not everyone will qualify for the best rates
• Other lenders may offer more-competitive rates

5 things to know about a U.S. Bank HELOC

Here’s a look at some of the top features of a U.S. Bank HELOC. 

1. Flexible payment terms during the draw period

The draw period is the time frame you have to withdraw funds, and U.S. Bank’s HELOC offers a 10-year draw period. During this time, you can choose how to make your minimum monthly payments — either 1% or 2% of your outstanding balance. If you qualify, you can also choose to pay interest-only. 

Once the draw period ends, you’ll need to make principal and interest payments. Your payment amount will be calculated to ensure the balance is paid in full at maturity. If you make interest-only payments during the draw period, your required monthly payments may be significantly higher during the repayment period. 

The ability to choose your repayment terms can help you manage your budget, particularly during the first 10 years. Some borrowers will appreciate this extra flexibility. 

2. Ability to convert to a fixed interest rate

While most HELOCs have variable interest rates and payments, U.S Bank’s HELOC offers the option to convert all or part of your outstanding balance to a fixed-rate loan during the draw period. You can have up to three fixed-rate options at one time, giving you the ability to lock in rates as they change.      

If you choose not to convert the entire balance, anything that’s left will still have a variable rate and a separate payment. 

Converting to a fixed rate may offer some protection against a potential rise in interest rates, and the fixed payment may make it easier to budget. This is not an option with all HELOCs, so it may make a U.S. Bank HELOC attractive to certain borrowers.

3. Not everyone will qualify for the lowest rates

U.S. Bank’s advertised rate is its lowest possible rate for qualified borrowers. It’s based on having a loan-to-value, or LTV, ratio of at least 70%, a FICO credit score of at least 730, a credit limit of $100,000, and a U.S. Bank personal checking account. 

People who don’t meet all of these qualifications could pay a significantly higher interest rate. It’s important to keep that in mind when comparing HELOC products.

4. Early closure penalty and other fees

If you close your U.S. Bank HELOC within the first 30 months, you’ll owe an early closure fee equal to 1% of the original line amount, up to $500.  

While you won’t have to pay closing costs, there may be escrow-related funding costs. If you don’t have a U.S. Bank Platinum Checking account, you may also be charged an annual fee of $90 after the first year. 

5. Automatic payments will get you a lower interest rate

Setting up automatic payments from a U.S. Bank personal checking or savings account will get you an additional 0.50% discount on your interest rate. Having a checking account with U.S. Bank isn’t required to get approved for a HELOC.

Are HELOCs hard to qualify for?

Each lender sets its own requirements to qualify for a home equity line of credit. This typically includes minimum credit scores, income requirements and a specified amount of home equity. 

The stronger these numbers are, the more likely you are to qualify.  

Who is a U.S. Bank HELOC good for?

U.S. Bank’s HELOC’s low minimum of $15,000 and high maximum of $750,000 in most states make it a good option for homeowners who want to access their home equity.

You can use your HELOC for anything, including making home repairs, consolidating debt, covering college tuition or paying for daily expenses. The flexible payment terms and ability to convert to a fixed rate may make this HELOC more attractive than using a credit card, personal loan or home improvement loan for these types of costs. 

How to apply for a U.S. Bank HELOC

Applying for a U.S. Bank HELOC is a three-step process. You can begin the application online, but you’ll need to close in person at a physical U.S. Bank branch. 

Approval requires you to have minimum credit scores and meet other program guidelines. These requirements are not disclosed on U.S. Bank’s website. 

U.S. Bank doesn’t list specific documents you’ll need to submit when you apply, but typically you’ll need things like recent pay stubs, bank statements, tax returns, and any supporting documents for other mortgages and loans. 

Not sure if U.S. Bank is right for you? Consider these alternatives.

• Figure: This blockchain-focused lender offers a HELOC with competitive rates and allows you to complete the entire process online.  
• Aven Home Equity Credit Card: This home equity credit card also offers cash back on your purchases.

This offer is no longer available on our site: Aven Home Equity Credit Card

PNC HELOC at a glance

• Fixed or variable rate: Variable, with the opportunity to convert to fixed
• How to withdraw funds: Checks, Visa Choice Access Card (except in Texas)
• Origination fee: Paid by PNC Bank, but must be repaid if HELOC closed in the first 36 months
• Loan-to-value ratio: Up to 80% to 89.9%, depending on the state
• Time to fund: Three-day holding period after closing (when primary residence is used as collateral)

PNC Bank’s home equity line of credit allows borrowers to access up to 80% or more of their home equity. PNC says its HELOCs have competitive interest rates — though they’re not listed on the site — and you can choose between a variable- or fixed-rate option

Pros

• Ability to convert between a variable and a fixed rate
• Credit lines ranging from $10,000 to $1 million

Cons

• Many possible fees
• Full appraisal required
• Not everyone will qualify for the best rates

4 things to know about a PNC HELOC

Here’s a look at some of the key features of a PNC HELOC.

1. Switch between variable and fixed rates

You have the option to convert all or part of your PNC HELOC ($5,000 minimum) to a specific fixed rate at any time during the draw period. Doing this allows you to lock in a rate that won’t change and make the same fixed payment every month.

This may be especially helpful if you watch the market and lock in rates when they’re low. Having a consistent payment can also help with budgeting.

The fixed-rate part of your HELOC can have a term of five to 30 years (five to 20 in Tennessee). You can have one or more fixed-rate portions and have the option to unlock your fixed rate and return to the variable rate.

2. Many different types of fees

PNC’s HELOC has a variety of fees, including a $50 annual fee and a $100 balance transfer fee each time you lock or unlock your interest rate.

Title insurance may be required for loans of $500,000 or more and for some other types of properties. This expense can range from a few hundred dollars to more than $16,000, and is required as an account opening fee.

PNC Bank also pays certain closing costs on your behalf. But if you close your account in the first 36 months, you’ll be required to reimburse the bank for a prorated amount of these costs.

These fees are not consistent among lenders, and you may be able to find a lender that charges fewer fees or none at all.

3. Rate discount for automatic payments

Borrowers can receive a 0.25% interest rate discount on the variable rate after the introductory period ends by setting up automatic payments from a qualifying PNC bank account. This must be set up at closing.

Note that if you cancel your automatic payments at any time, you will lose this discount.

4. Helpful online tools

Getting a HELOC can be a big decision, and there are many factors to consider. PNC Bank helps support borrowers by providing resources such as a tool to help estimate the amount of your home equity and a home improvement cost calculator.

How long does it take to get a HELOC from PNC Bank?

The amount of time from application to approval varies. Once your information has been approved, PNC Bank will contact you to confirm and let you know about any closing stipulations. Then, you can schedule your closing date.

Keep in mind that because PNC Bank requires an appraisal, your funding time will likely be longer than HELOC lenders that don’t require an appraisal.

If you’ve used your primary residence as collateral, you’ll receive a legally required three-day rescission period after you close, which allows you to cancel your HELOC if you change your mind. Once the three-day period has passed, you’ll be able to access your funds. 

Who is a PNC HELOC good for?

A PNC HELOC can be a strong choice for homeowners who want to watch the market and lock or unlock their interest rates during their draw period. The ability to get a large ($1 million) or small ($10,000) HELOC also makes it a viable option for people who want to use their home equity for anything from small home repairs to large home improvements, debt consolidation or major purchases. Since it offers a fixed rate and allows you to only pay interest on the funds you withdraw, this HELOC can also be a good alternative to a cash-out refinance.

How to apply for a PNC HELOC

Applying for a PNC HELOC is fairly simple, but it does require significant documentation and verification. While you can begin the application process online or over the phone, you must close on your loan in person.

To qualify for a PNC HELOC, you must meet the lender’s minimum requirements. During the review process, PNC will examine your credit scores and credit history, verify your income, employment and ownership of the property, and confirm the value of the property by ordering an independent appraisal.

You can start your application online, over the phone or in person at a PNC Bank branch. If you’re approved, you’ll schedule a closing appointment, where you’ll sign your paperwork.

Not sure if PNC is right for you? Consider these alternatives.

• Bank of America: This national competitor offers a HELOC with no application fee, no annual fee and no closing costs, as well as an option to convert to a fixed rate without fees.
• Aven Home Equity Credit Card: This unique, hybrid setup is a home-equity-backed credit card with cash-back rewards.

This offer is no longer available on our site: Aven Home Equity Credit Card

Figure HELOCs at a glance

• Fixed or variable rate: Fixed
• How to withdraw funds: Unclear
• Origination fee: Up to 4.99% of initial draw (depending on your state and credit)
• Loan-to-value ratio: Not listed on Figure’s site
• Time to fund: As soon as five days

Figure is an online lender that offers home equity lines of credit, or HELOCs, with competitive rates and flexible loan terms.

But keep in mind that Figure’s HELOC works a little differently than many others you will come across. Figure requires you to withdraw the full amount of your credit line when you first take it out in exchange for a fixed rate.

You can take out more money down the road during your draw period as you make repayments on your credit line — but you’ll face a new interest rate on any new amount borrowed.

That can be a pro if you are planning a large renovation, but a con if you only want to borrow smaller amounts of your credit line at a time.

Pros

• Online application with potentially fast approval
• No in-person appraisal required
• Ability to check potential rate with a soft credit inquiry
• Offers HELOCs for primary and secondary residences

Cons

• Maximum loan amount varies by credit score
• Not available in all states

5 things to know about a Figure HELOC

Here are a few important features of Figure’s HELOC.

1. Requires 100% initial draw

A typical HELOC allows you to tap into your home equity by withdrawing funds as you need them. But Figure’s HELOC is similar to a home equity loan or a cash-out refinance, since it requires you to initially withdraw 100% of your approved amount.

Since you’ll owe interest on the entire amount even if you don’t need it all at once, this could be a drawback for some borrowers.

2. New draws lock in new rates

Figure’s HELOC is a fixed-rate product. When you take out your initial draw, your rate is locked in.

But as you pay down your equity line, you are also able to take out additional draws during the draw period. Each draw will lock in a new rate. Depending on current market conditions, your new rate could be higher or lower than your initial rate.

3. Borrow up to $400,000 with competitive rates and flexible terms

Figure offers HELOCs ranging from $15,000 to $400,000. But the minimum and maximum amounts available vary depending on a variety of factors, including the state where the property is located, your FICO score, the property type and the loan-to-value ratio.

Figure offers terms of five, 10, 15 and 30 years. As of April 2024, Figure’s APRs are competitive when compared with similar HELOC lenders.

4. Available for primary, secondary and investment properties

You can use Figure’s HELOC to borrow against the equity of a primary or secondary residence or an investment property. The company says it offers HELOCs for single-family homes, townhouses, most condos and planned urban developments, or PUDs.

You may own the home individually, jointly with others or through a revocable trust. Before approving a HELOC application, Figure will verify ownership by checking county records.

5. Ability to check your potential rate without affecting your credit score

Figure allows you to quickly see whether you’re likely to qualify and the rate you may receive by completing a form online. This is done with a soft credit inquiry that does not affect your credit scores.

But completing a loan application requires a hard credit inquiry and may temporarily impact your credit scores.

Does Figure require an appraisal for a HELOC?

Figure doesn’t require an in-person appraisal for HELOCs. Instead, the lender assesses the value of properties using an Automated Valuation Model. This process involves reviewing historical price trends, public data records and recent sales of similar properties.

The company also offers an e-notary that can help you close on your HELOC electronically. But keep in mind that it’s not available in all states.

If Figure can’t verify that your property is in at least “average” condition a “desktop appraisal” may be required which can extend the time it takes to receive funding.

Who is a Figure HELOC good for?

Since Figure’s HELOC requires a 100% initial draw, it can be a good option for homeowners who plan to use all or the bulk of their approved amount in a relatively short time. For homeowners planning a large renovation or remodeling project, this may be a good alternative to a home improvement loan.

While many HELOCs have adjustable rates, Figure’s fixed rates may make it attractive to people who prefer making a fixed payment over the life of their loan.

How to apply for a Figure HELOC

Figure’s application process takes place entirely online. It features a video notary and advertises quick online support. But Figure also provides a 1-800 number you can call if you have questions about the lending requirements or application process.

Minimum qualification requirements vary by state. Generally, you need a minimum credit score of 620 (680 for investment properties) and must be employed, self-employed or retired.

To apply you’ll need to provide …

• Personal information such as your name, date of birth and contact information
• The property address
• Identity, income and employment information

Not sure if Figure is right for you? Consider these alternatives.

• Bank of America: This national lender offers larger lines of credit and no application fee, closing costs or annual fees.
• Aven Home Equity Credit Card: This innovative option combines features of a HELOC and a credit card, allowing you to tap into your home equity while also earning cash back.

Bank of America HELOC at a glance

• Fixed or variable rate: Variable but may convert to fixed
• How to withdraw funds: Checks, Visa Access card, in-person or phone withdrawals, online and mobile banking
• Origination fee: No
• Loan-to-value ratio: Unclear
• Time to fund: Unclear

Bank of America is a large, well-known bank that offers home equity lines of credit (HELOCs) with access to up to $1 million of your home equity. Borrowers may be able to save with rate discounts and the option to convert to a fixed-rate loan option.

Pros

• Ability to convert to a fixed-rate loan
• No application fee, closing costs or annual fee
• Access up to $1 million in home equity

Cons

• Minimum of $25,000 HELOC is required to complete your application online
• Must have excellent credit and qualify for discounts to get the best rates
• Other lenders may offer lower rates

4 things to know about a Bank of America HELOC

Here are a few of the key features of the Bank of America HELOC.

1. Rate discounts are available

Bank of America offers several opportunities for borrowers to reduce their interest rates, which can help you save money on interest payments over the lifetime of your loan.

This includes an 0.25% discount for setting up automatic monthly payments and a maximum 1.5% discount when you make an initial withdrawal after opening your account (0.1% reduction on your interest rate for each $10,000 you withdraw).

Bank of America Preferred Reward Members can also get additional discounts. Gold tier receives a 0.125% interest rate discount, Platinum tier receives a 0.25% discount, and Platinum Honors tier receives a discount of 0.375%.

Tiers are determined based on the combined qualifying balances of your Bank of America deposit and Merrill investment accounts. To qualify as a Bank of America Preferred Rewards Member, you’ll need to have an active checking account and a three-month combined daily balance of $20,000 or more.

2. Ability to convert to a fixed loan

While most HELOCs have a variable interest rate, the Bank of America HELOC offers the opportunity to convert all or a part of your HELOC to a fixed-rate loan. This can be a benefit since having fixed payments can make budgeting more predictable. Once you’ve locked in your rate, it won’t change for the duration of the selected term.

This can offer protection against rising interest rates. But it’s important to note that Bank of America says the fixed rates for these loans are typically higher than the variable rates. This means you’ll pay more interest up front, but if rates rise, you could ultimately save money on your interest payments.

There’s no fee for converting your loan, and you can have up to three fixed-rate loans at once. This gives you the flexibility to lock in rates over time. Note, however, that you must convert at least $5,000 each time, for a total of no more than 90% of your maximum credit line amount.             

3. Approval requirements are not disclosed

Some lenders provide approval requirements up front, making it easy to understand whether you’re likely to qualify. Bank of America does not disclose this information on its website.

Instead, you’ll need to submit an application and documentation before you find out whether you’re approved. However, you can apply with no fee or obligation. A Bank of America loan specialist may also be able to provide you with the approval requirements over the phone before you complete the entire application process.

4. You cannot complete your HELOC closing online

Although you can complete the application online, you’ll need to communicate with one of Bank of America’s loan specialists to finish the process. Once approved, you’ll also need to close your HELOC in person at one of Bank of America’s financial centers.

If you’re applying for a HELOC of less than $25,000, you’ll need to contact Bank of America over the phone to get started — starting your application online is not an option.

These requirements could be inconvenient for those who prefer a fully online experience.

Is getting a HELOC a good idea?

There are many potential advantages to getting a home equity line of credit. Since they may allow you to make withdrawals using a check, online transfer or even a Visa card, a HELOC can be a convenient way to access the equity in your home.

Unlike a cash-out refinance or a home equity loan, a HELOC allows you to withdraw only what you need when you need it, rather than having to pay interest on a lump-sum loan. You can also use your HELOC for anything you need including home repairs, education expenses or paying off higher-rate debts.

But there are some potential drawbacks to consider. For example, HELOCs typically have a variable interest rate and variable payments. As mentioned, Bank of America’s HELOC allows for conversion to a fixed rate, with certain conditions — but a typical variable rate HELOC can make budgeting difficult. HELOCs also use your home as collateral, which means you could risk losing your home if you don’t make your payments.

Who is a Bank of America HELOC good for?

With the potential to access up to $1 million, the Bank of America HELOC could be good for homeowners who have a significant amount of home equity and want to access a big line of credit. Bank of America Preferred Reward Members will also receive lower interest rates than the general public, possibly making this a good choice for current Bank of America customers who qualify for these perks.

How to apply for a Bank of America HELOC

For HELOC amounts of $25,000 or more, Bank of America offers an online application that you can complete. But for smaller HELOCs, you’ll need to call the bank’s service center to get started. 

• Minimum eligibility requirements are not provided online. You can try contacting Bank of America’s service specialists for more information.
• You can start your application online by providing basic information. From there, you’ll upload the required documents and can check your status online. A Bank of America rep will guide you through the process. If you’re approved, you’ll need to close your HELOC in person at a Bank of America branch.
• Gather your income and employment documentation and information about your current mortgage balance and payments. You’ll also need to provide your current homeowners insurance and property tax amounts, along with your estimated property value. The online application also asks for the HELOC amount you’re requesting and how you plan to use the funds.

Not sure if Bank of America is right for you? Consider these alternatives.

• Figure: This lender offers a fast, 100% online application and approval process and funding potentially within five days.
• Third Federal: This bank’s fixed-rate home equity loan could be an option for people who only need to borrow a smaller amount.

This offer is no longer available on our site: Aven Home Equity Credit Card

Aven Home Equity Credit Card at a glance

• Fixed or variable rate: Variable, but fixed available for cash-outs
• How to withdraw funds: Credit card or cash out to bank (for a 2.5% fee)
• Origination fee: None
• Loan-to-value ratio: Varies
• Time to fund: About seven business days

The Aven Home Equity Credit Card combines features of a traditional HELOC and a credit card, allowing you to tap into your home equity and take advantage of lower interest rates than you’d typically find with a credit card.

Pros

• Earn 2% cash back on purchases
• Prequalification application doesn’t affect your credit scores
• Fast application
• Credit limit of up to $250,000

Cons

• Need strong credit for lowest rate
• Variable interest rate can be risky if rates are rising
• 2.50% fee on cash outs and balance transfers

5 things to know about Aven

Let’s take a look at some of the features of the Aven Home Equity Credit Card.

1. Combines features of a HELOC and a credit card

The Aven Home Equity Credit Card allows you to access your home equity using a credit card. As part of the approval process, the company evaluates the amount of equity you have in your home, as well as other factors such as your credit, income and debt obligations.

Using your home as collateral allows Aven to provide competitive rates compared to many standard credit cards.

2. You can transfer cash or use your Aven Home Equity Credit Card to pay off other debts

In addition to accessing your home equity using a credit card, Aven also allows you to transfer cash to your personal bank account and repay it at the same rate as purchases made with the card. You can also use the Aven Home Equity Credit Card to pay off other debts, such as personal loans or high-interest-rate credit cards.

But keep in mind that a one-time 2.50% transfer fee applies. That number can add up if you’re transferring a large amount.

3. It comes with flexible repayment options

Unlike a home equity loan, the Aven Home Equity Credit Card allows you to pay only for the amount you actually use. Charges made using the credit card are subject to a variable interest rate and require a minimum monthly payment of 1% of your statement balance, plus interest.

For cash outs, you can choose fixed monthly installment payments instead of monthly payments based on a variable rate. Aven offers fixed payments with terms of five or 10 years, depending on the amount you’ve borrowed. A one-time 2.50% transfer fee applies.

4. Easy to get started

You may be able to qualify for an Aven Home Equity Credit Card in as little as 15 minutes, according to the company. If approved, you can expect to get your card within seven business days and start using it to make purchases right away.

5. No annual fee

With the Aven Home Equity Credit Card, you won’t pay an account closing fee, applications fee, prepayment penalty or annual fee. But there’s a $29 late fee if you fail to make your minimum monthly payment on time.

Is getting a HELOC a good idea?

A home equity line of credit can be a convenient way to access the equity in your home. It allows you to use a checkbook or card to pull out money as you need it, up to a predetermined maximum amount. You’ll want to consider if it makes more sense than a cash-out refinance, which will depend on current rates, your credit and the amount you want to borrow.

You can use a HELOC for a variety of purposes, such as financing home repairs or paying off higher-interest debt. Since a HELOC allows you to take out only what you need, when you need it, it may help you to avoid paying unnecessary interest.

But there are some potential drawbacks to consider. For example, variable rates and payments can make it difficult to budget for your monthly payments. Plus, since your home serves as collateral for the loan, the lender could foreclose on it if you fail to make your payments.

Who is an Aven Home Equity Credit Card good for?

An Aven Home Equity Credit Card may be a good option for homeowners who have equity in their home, excellent credit and the need to access funds quickly. The transfer option may be appealing to people who want to pay off higher-rate debts. And the credit card is likely to attract people who are looking for competitive rates and a convenient way to tap into their home equity.

Not sure if Aven is right for you? Consider these alternatives.

• Alliant Credit Union: Alliant may be worth considering if you prefer no closing costs or appraisal fees.
• Figure: Figure is a good option for people who want fixed-rate HELOCs with high credit limits.

This offer is no longer available on our site: Aven Home Equity Credit Card

Spring EQ HELOCs at a glance

• Fixed or variable rate: Fixed
• How to withdraw funds: Wired to your bank
• Origination fee: Unclear
• Loan-to-value ratio: Up to 95%
• Time to fund: 21 days, on average

Spring EQ is an online lender that offers digital applications and a dedicated support team. The company’s home equity line of credit offers access to a large percentage of your home equity.

Pros

• Ability to access up to 95% of your home’s equity
• Very high loan maximum
• Interest-only payments available for up to 10 years

Cons

• It takes an average of 21 days to receive your funds
• Fees, rates and terms are unclear
• Need a FICO credit score of at least 700 to access 95% of home equity

5 things to know about a Spring EQ HELOC

Here’s a closer look at some of the key features of the Spring EQ HELOC.

1. Flexible loan terms

The Spring EQ HELOC allows you to choose loan terms of five to 30 years and make interest-only payments for the first 10 years. This provides additional flexibility for how you repay your funds. Combined with the potential to access up to 95% of your home equity, this can give you the ability to make major home repairs without having to take out a home improvement loan.

2. Fixed-rate options

Spring EQ has fixed interest rate options, a nice perk compared to traditional HELOCs, which often have a variable rate that changes over time. A fixed rate offers more predictability for payment planning.

3. Streamlined online application process

Spring EQ says it offers a fast digital application process, along with a dedicated team of support experts who can help streamline the process and answer questions. Once you’ve submitted the required information, you may know immediately whether you’ve qualified.

4. Free home equity analysis

You can get a free estimate quickly by answering a few questions online. However, while this can provide you valuable information, receiving an analysis does not mean you’re preapproved for a HELOC.

5. No online payment option

Currently, Spring EQ’s payment options include payments by check and over the phone, ACH withdrawals from your bank account or bill pay through your bank’s system. The company does not offer online payments, which may be inconvenient for many borrowers. But Spring EQ claims that online payments will be available soon.

Who is a Spring EQ HELOC good for?

A Spring EQ HELOC is good for homeowners who need a large line of credit and don’t mind waiting up to three weeks to receive their funds. It can also benefit homeowners with good credit who want to access a large percentage of their home equity without having to do a full cash-out refinance.

The potential for fixed rates also makes this an attractive choice for anyone who prefers a more predictable payment.

How to apply for a Spring EQ HELOC

Spring EQ uses an online application system. Here’s what you should know.

• You must have a minimum FICO score of 680 and a debt-to-income (DTI) ratio of no more than 45% to be eligible, and a 700 FICO to qualify for access of up to 95% of your equity.
• When you apply, you should expect to provide a current mortgage statement, proof of income, a copy of your current homeowners insurance policy and a photo ID.

Not sure if Spring EQ is right for you? Consider these alternatives.

• Aven Home Equity Credit Card: Aven combines a HELOC with a credit card that provides cash back.
• U.S. Bank: This well-known lender offers many ways to access your HELOC funds.

TIAA Yield Pledge Checking® account at a glance

TIAA offers a Yield Pledge Checking account, as well as a basic checking account. We’ll focus on TIAA’s Yield Pledge Checking account.

Yield Pledge Checking offers convenient checking with an overdraft protection option as well as competitive checking account yields and no monthly account fees.

It’s simple to get started, but you’ll need to make an initial deposit of at least $100, which is higher than some other checking account options, including TIAA’s basic checking account.

5 things to know about TIAA’S Yield Pledge checking account

Here’s a closer look at some of the most important features of TIAA’s Yield Pledge checking account. 

1. Full-service banking solutions

In addition to offering standard checking account services, TIAA also offers business banking and a variety of retirement and investment products. For people looking to tie in savings and money market accounts, TIAA has a similar yield pledge for its money market account.

Being able to handle many financial needs with one institution might be an advantage for you, since it can be more convenient than having to deal with multiple companies.

2. Debit card with purchase protection benefits

When you use a TIAA Bank debit card, you’ll automatically receive purchase benefits, including extended warranty protection on eligible purchases.

This is a benefit that not all free checking accounts provide. In fact, it’s more commonly seen as a credit card perk. The extra protection and peace of mind can be a significant benefit that may make a TIAA checking account more attractive than some other checking accounts.

3. Powerful online and mobile platforms

The TIAA Yield Pledge checking account has online and mobile platforms that allow you to manage your money from wherever you are, 24 hours a day.

TIAA’s platform lets you set budget and savings goals, make internal and external transfers, send and receive Zelle transfers, and more. It also offers a “web safety guarantee,” which offers protection for any funds lost because of unauthorized online use.

This can be an advantage if you enjoy the convenience and flexibility of online and mobile banking — or if you work nontraditional hours or travel and don’t want to be tied to specific banking hours and locations.

4. You may find higher rates elsewhere

Despite TIAA’s pledge to remain in the top 5% of checking account yields, it may be possible to find higher rates elsewhere. New account sign-up bonuses at other financial institutions might put more cash in your pocket.

5. Limited customer service

While you can access your accounts online or through your smart phone at any time, if you need to speak to a customer service representative, you’ll only be able to reach them by phone between 8 a.m. and 8 p.m. Eastern time on weekdays and 9 a.m. to 7 p.m. Eastern time on Saturdays. This can be inconvenient, particularly if you have an issue you want to resolve right away.

Does TIAA have checking accounts?

While TIAA may be best known for its roots as a major retirement and pension fund manager for teacher’s unions and government workers, the company offers two types of checking accounts: a basic checking account and the Yield Pledge checking account.

Who can join TIAA?

TIAA is an acronym for the Teacher’s Insurance and Annuity Association of America. But access to TIAA bank isn’t limited to teachers. Anyone can apply for a TIAA banking account.

Not sure if TIAA Yield Pledge checking is right for you? Consider these alternatives.

• SoFi checking: This may be a good option if you’re interested in a free checking account with no monthly fees, overdraft fees or minimum balance requirements.
• Capital One 360 checking account: This checking account offers more than 70,000 fee-free ATMs branches and cafes for in-person banking.

Chase Total Checking account at a glance

Chase checking accounts offer access to an impressive number of physical bank branches and in-network ATMs, as well as the flexibility to open different types of Chase checking accounts as your needs change.

4 things to know about a Chase checking account

1. Multiple checking account options

With eight different types of checking accounts, available, you’ll be able to reevaluate your relationship with Chase, even if  your banking needs change.

• Chase Total Checking — The most popular Chase checking account, according to the company
• Chase Secure Banking — A checking account with no overdraft fees
• Chase Premier Plus Checking — An interest-bearing checking with lower fees
• Chase First Banking — A parent-owned account for children ages 6 to 17
• Chase High School Checking — A parent co-owned account for students ages 13 to 17 at the time of account opening
• Chase College Checking — For college students ages 17 to 24 at the time of account opening
• Chase Sapphire Banking — A premium account with benefits such as lower fees, autosave and higher ATM withdrawal limits
• Chase Private Client Checking — A premium account with priority service, discounted home loans and auto rates and a dedicated financial team

2. A full-service banking solution

In addition to checking accounts, Chase also offers savings accounts, certificates of deposit, credit cards, auto loans, mortgages, home equity loans, business banking and merchant services. Customers also can access investment services via parent company J.P. Morgan.

To put it simply, Chase is one of the largest financial institutions on the planet. Being able to handle all of your financial needs with one company can be a significant benefit.

3. A number of fees

The monthly service fee for the Chase checking account is $12. But you can get this fee waived if you meet one of the following requirements:

• Have a total of $500 or more per month in direct deposits into this account
• Have a beginning daily balance of $1,500 or more
• Have an average beginning day balance of $5,000 or more in a combination of this account and linked qualifying Chase checking, savings and other investment accounts

There are no overdraft fees if you’re overdrawn by $50 or less at the end of the day. But if you’re overdrawn by more than $50, the overdraft fee is $34 per item, charged during overnight processing. You can be charged up to three insufficient funds fees per business day, for a total of $102 per day.

If you’re worried about keeping up with a bunch of fees and account requirements, you might want to look for a simpler checking account.

4. No interest checking

The Chase Total Checking account doesn’t offer interest. Chase Sapphire Checking and Chase Premier Plus Checking both pay interest, but they offer an APY that’s much lower than many other interest checking account options.

If you’re planning to keep a significant balance in your checking account, you may want to explore other options that pay higher interest rates.

How much money do you need to open a Chase bank account?

There’s currently no minimum balance to open a Chase checking account. But some accounts require you to maintain a minimum balance to avoid monthly fees.

Is Wells Fargo or Chase better for a checking account?

Chase and Wells Fargo are both national banks with brick-and-mortar locations throughout the country. If you’re looking for a wider range of checking account options, Chase might be your best choice.

But Wells Fargo offers two accounts with lower monthly fees, making this a more attractive option for some people.

Not sure if Chase is right for you? Consider these alternatives.

• Chime: While there are no physical locations, Chime offers checking with no initial deposit or minimum balance and no monthly service or overdraft fees.
• SoFi: If you’re looking for interest checking, SoFi is a competitive option compared to the national average and has no monthly, overdraft or minimum balance fees.

Capital One 360 checking accounts at a glance

Capital One 360 checking is a fee-free, interest checking account with branches, cafes, online and mobile banking options. It’s easy to get started, and you can open an account in person or online.

5 things to know about a Capital One 360 checking account

Let’s take a closer look at some things you can expect when using a Capital One 360 checking account.

Interest checking

Capital One 360 checking is an interest-bearing checking account. While this may be a benefit when compared to checking accounts that don’t pay interest, other institutions offer free checking with higher interest rates.

Automated savings

With a Capital One 360 checking and 360 Performance Savings™ account, it’s easy to set up automated savings. Choose any amount you’d like to transfer from checking to savings at any frequency you prefer. You can save money without constantly having to think about it.

Multiple overdraft protection options

Capital One 360 allows owners to choose from one of three overdraft protection options, each without any overdraft fees.

• Auto decline: Capital One will automatically decline transactions that cause an overdraft on your account in most instances.
• Free transfer: This option automatically transfers funds from your linked savings or money market account to cover overdrafts.
• No-fee overdraft: This allows Capital One to cover approved transactions that put your balance below zero. In this case, you must promptly deposit funds to cover the overdraft.  But note that not everyone qualifies for no-fee overdraft. To be eligible, you must deposit at least $250 during two of the previous three months. This means that new accounts can’t qualify until at least the third month after it has been opened, and you’ll need to keep depositing $250 every two out of three months.

Early paycheck access

When you set up direct deposit on your Capital One 360 checking account, you can automatically access your paycheck up to two days early without any additional fees. This can be a significant benefit if you typically don’t have much extra money in your checking accounts.

Capital One cafés

Capital One Cafés are a space where you can do your banking, enjoy a full-service coffee bar with an assortment of food options, and attend meetups, workshops and community events. They also have friendly “ambassadors” who can help with your banking needs, as well as free Wi-Fi, access to charging stations, semi-private nooks and other cozy places to relax.

While you don’t have to be a Capital One customer to access the cafés, some people appreciate the company’s friendly and unique approach to banking. If you prefer that approach, you may consider this a benefit over other institutions that don’t provide these types of services.

Is Capital One 360 checking free?

There are no fees associated with opening or maintaining a Capital One 360 checking account. There’s no minimum amount required to open an account and no ongoing minimum balance requirements. However, you may receive fees for certain special requests such as overnight delivery of a replacement card, overnight check delivery or requesting a stop payment.

Is there a difference between Capital One and Capital One 360?

Capital One is one of the nation’s largest banks. The bank offers a range of financial services including credit cards, checking and savings accounts, auto loans, business accounts, commercial accounts and more. Capital One 360 refers to certain checking and savings accounts offered by Capital One.

Not sure if Capital One 360 Checking is right for you? Consider these alternatives.

• SoFi Checking and Savings: SoFi offers a checking option with a strong APY, making this a potentially better option if you tend to keep higher checking account balances.
• Betterment checking: This checking account automatically reimburses ATM fees, making it a good option if you don’t want to worry about finding in-network ATMs.