Minnesota HELOC Rates and Lenders
A home equity line of credit (HELOC) can unlock many options for financing the things that make your life better. But first, you’ll need to sort through another layer of options: which lender to choose. Minnesota HELOCs are available from local and nationwide lenders, each with pros and cons. Reviews of the best online HELOCs […]
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A home equity line of credit (HELOC) can unlock many options for financing the things that make your life better. But first, you’ll need to sort through another layer of options: which lender to choose.
Minnesota HELOCs are available from local and nationwide lenders, each with pros and cons.
Reviews of the best online HELOCs in Minnesota
Online lenders are often a good start when researching your HELOC options in Minnesota. It’s easy to compare and contrast your rates and manage your account since most nationwide lenders provide robust online interfaces and a smooth, streamlined process.
Figure
Best overall
Why we picked it
Figure stands out as Minnesota’s best overall HELOC provider, offering competitive fixed rates.
Figure’s online application process is quick and efficient, often approving and funding loans within five days thanks to its use of blockchain technology. This speed and transparency make.
Figure an excellent choice for Minnesota homeowners needing fast home equity access for renovations, debt consolidation, or other financial needs. Its exceptional customer service and clear terms further enhance its appeal.
- Fixed interest rates
- No in-person appraisal is needed
- Option to redraw up to 100% of funds
- Funding can be available in as few as 5 days
- Check your rate without affecting your credit score
Loan details
| Rates (APR) | 6.55% – 15.54% |
| Loan amounts | $15,000 – $400,000 |
| Draw period | 5 years |
| Repayment term | 5, 10, 15, or 30 years |
| Funding time | As few as 5 days |
| Properties | Primary home, second home, or investment property |
| Credit score | 640 |
Bethpage
Best credit union
Why we picked it
Bethpage offers substantial HELOCs with an appealing low introductory rate, making it an excellent choice for Minnesota homeowners needing significant credit lines.
Bethpage is known for its large borrowing limits, ideal for major home renovations or other significant expenses.
The straightforward application process, competitive rates, and commitment to customer service make Bethpage a strong contender for those looking to maximize their home equity. Its flexibility and support ensure borrowers can access the funds they need.
- Borrow $10,000 – $1 million
- No application, origination, or appraisal fees
- Convert part of your HELOC to a fixed-rate option
- 12-month fixed introductory rate for qualified borrowers
- $0 closing costs
Loan details
| Rates (APR) | 6.99% for 12 months, then variable |
| Loan amounts | $10,000 – $1 million |
| Draw period | 10 years |
| Repayment term | 5, 10, or 20 years |
| Funding time | 36 – 70 days, on average |
| Properties | Primary |
| Credit score | 670 |
LendingTree
Best marketplace
Why we picked it
LendingTree is an excellent platform for comparison shopping. Minnesota residents can benefit from LendingTree’s extensive network of lenders, which makes it easy to compare multiple HELOC offers to find the best rates and terms. The platform’s user-friendly interface simplifies the process, allowing homeowners to make well-informed decisions. This comprehensive comparison shopping tool is perfect for those who want to ensure they are getting the most competitive deal available.
- Access to multiple lenders
- Comprehensive comparison tools
- Competitive rates
- Customizable loan options
Loan details
| Rates (APR) | Starting at 6.24% |
| Loan amounts | $10,000 – $2 million |
| Draw period | 2 – 20 years |
| Repayment term | 5 – 30 years |
| Funding time | Varies |
| Properties | Varies |
| Credit score | Varies, 620 advisable |
Local HELOCs in Minnesota
Minnesota-based lenders have more incentive to win your business since there’s a smaller pool of potential customers. Going with local lenders in Minnesota to obtain your HELOC might be a better fit if you prefer quality customer service. That’s especially true if you prefer working with people face-to-face.
| Company | Rates (APR) | Location |
| Minnesota Bank & Trust | Starting from 9.25% | St. Paul |
| Wings Financial Credit Union | Starting from 8.25% | Apple Valley |
| Affinity Plus Federal Credit Union | Starting from 7.98% | St. Paul |
Credit unions, such as Wings Financial and Affinity Plus, are great options since these are locally-based, nonprofit organizations that pass profits off to members through lower rates on Minnesota HELOCs. You’ll need to join the credit union first, with many based in your local community.
What’s the difference between online and local HELOCs in Minnesota?
Online lenders generally offer a quicker and easier path to taking out your HELOC. For example, Figure can usually assess your home’s value and have you sign the HELOC documents remotely, and that’s fairly typical of online lenders.
Local lenders may require in-person appraisals and signings. However, you won’t be able to walk into a local Figure branch if you run into any snags because there are none.
In addition, most local options for Minnesota HELOCs come from banks and credit unions, as opposed to companies that only offer home equity financing. They may offer special rates and deals if you use some of their banking services, too. Minnesota Bank & Trust offers a 0.75% rate discount if you keep a lot in savings, for example.
How do Minnesota HELOC rates compare to other states?
Interestingly, HELOC rates don’t generally vary much by state. Nationwide, most people are paying an average rate of 10.04%, according to LendEDU research. That’s within the range that most Minnesota HELOCs are charging. Affinity Plus charges between 7.98% and 18%, for example.
Instead, your rates depend on many other factors, such as how large of a line of credit you’re taking out, your credit score, and more. Minnesotans have the highest average credit score in the U.S.
Minnesota home values also tend to be lower. According to Redfin, the median sales price in May 2024 was $439,716 nationwide versus $354,900 in Minnesota. That means most Minnesota HELOCs are probably for smaller amounts, but smaller HELOCs also mean smaller interest rates.
How to get the best HELOC rates in Minnesota
Qualifying for better rates on Minnesota HELOCs works the same as in other states, too. Lenders use several factors to calculate your rates, and you can potentially tweak each one of these to dial in the best rate for you:
- Income: HELOC payments vary tremendously, so lenders will check that your income is stable enough to afford those fluctuating payments.
- Credit score: Most lenders require a credit score of 640 or higher. The best rates go to those with excellent credit, which you can build over time.
- Loan-to-value ratio: Between your HELOC and your first mortgage (if any), you can generally borrow up to 85% of your home’s value, depending on the lender.
- Debt-to-income ratio: Many lenders limit your borrowing ability so that you’re not spending more than 43% of your monthly income across all your debt payments.
Lenders use some or all of these factors to determine your interest rate and put together a broader picture of whether you’re a good candidate for a HELOC or not. If you are, most lenders will generally reward you with lower rates.
Shopping around for rates is important since every lender prices Minnesota HELOCs differently.
Ask the expert
How can readers budget for the variable payments of a HELOC? Because HELOC payments can vary, I recommend that you budget for what is expected to be the highest interest rate (for example, the interest rate environment we are in now) and expect to pay the higher amount each month during the repayment terms. If this fits in the budget without impeding non-discretionary and discretionary spending, then the borrower should be able to safely afford the variable-rate HELOC.
Are there any Minnesota-specific requirements or regulations?
Minnesota doesn’t have any laws governing second mortgages (an umbrella term for other debts attached to your home besides your mortgage) aside from specific rules and procedures if your home is foreclosed upon.
However, it’s important to know that most HELOC lenders, in general, will require you to keep the same types of property insurance in place, such as homeowners insurance and flood insurance, if applicable.
FAQ
What credit score do you need for a Minnesota HELOC?
Most lenders in Minnesota look for a good credit score to secure a HELOC. A score of 680 or higher is often considered favorable. Some lenders may approve applications with scores as low as 620, but higher scores translate to better interest rates and more favorable terms.
It’s always wise to check with individual lenders because requirements can vary.
What are the typical fees for a Minnesota HELOC?
HELOC fees in Minnesota can include application fees, annual fees, and closing costs. Application fees range from $0 to a few hundred dollars. Some lenders charge annual fees, which can be around $50 to $100. Closing costs, which cover appraisal fees and title search fees, can range from 2% to 5% of the credit line.
It’s crucial to review each lender’s fee structure before committing.
Are there any special programs or incentives for Minnesota HELOCs?
Yes, Minnesota offers several incentives for HELOC borrowers. Some lenders provide discounted rates or reduced fees for new customers. Others may offer special rates for individuals with excellent credit scores or those who enroll in automatic payments.
Some Minnesota credit unions and community banks may provide unique incentives, such as waived initial fees or lower closing costs. Always explore various options and programs to find the best deal.
How we chose the best Minnesota HELOC lenders
LendEDU evaluates HELOC lenders to help readers find the best HELOCs. Accessibility is important to this evaluation, so our editorial ratings system primarily focuses on companies available in most U.S. states. That’s why the lenders we selected in the online section have editorial ratings. They’ve gone through an extensive review process and were determined to offer superior products compared to other lenders. We’ve also independently verified that these companies are available in Minnesota.
Since most local lenders aren’t available outside state lines, they haven’t gone through the same review process as the online lenders. Instead, we found them through separate research and determined that each offered solutions worthy of consideration by readers.
Recap of Minnesota HELOC rates and lenders
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