Connecticut HELOC Rates and Lenders
If you’re looking for a home equity line of credit (HELOC) in the Constitution State, you might need funds for a home renovation, debt consolidation, or a major purchase. The LendEDU team has spent hours researching the best HELOC rates in Connecticut to help you save time and money. Explore your options below to find […]
The post Connecticut HELOC Rates and Lenders appeared first on LendEDU.
If you’re looking for a home equity line of credit (HELOC) in the Constitution State, you might need funds for a home renovation, debt consolidation, or a major purchase.
The LendEDU team has spent hours researching the best HELOC rates in Connecticut to help you save time and money. Explore your options below to find the best HELOC for your needs.
| Company | Rates (APR) | LendEDU rating (out of 5) |
| Figure | 8.80% – 17.45% | 4.9 |
| Hitch | 8.25% – 13.00% | 4.4 |
| Bethpage FCU | Starting at 8.50% | 4.5 |
| LendingTree | Starting at 6.99% | 4.7 |
Reviews of the best HELOC lenders in Connecticut
Exploring multiple vendors is crucial when considering a HELOC to ensure you get the best terms suited to your needs. Here’s a look at four top-rated HELOC providers serving Connecticut residents.
Figure
Best online lender
Why we picked it
Figure is known for its efficiency and customer-friendly approach, making it an excellent choice for those who value speed and simplicity. With competitive rates and a digital process, you can manage your loan from the comfort of your home.
The online application is straightforward and can be completed in minutes, reducing the time and effort often associated with traditional loan processes. Figure offers flexible loan terms you can customize to fit your financial situation. Whether you need a short-term solution or a longer repayment plan, Figure provides options that cater to diverse needs.
Its transparent approach ensures you understand all aspects of your loan, helping you avoid unexpected surprises.
- Fast application process entirely online
- Flexible loan terms
- Competitive interest rates
Hitch
Best for accessing up to 95% of equity
Why we picked it
Hitch specializes in maximizing your ability to tap into your home equity. Its standout feature is the high LTV ratio, ideal for homeowners with less equity who need access to cash. This makes Hitch a practical option for those looking to leverage their home’s value.
The approval process at Hitch is fast, ensuring that you get access to your funds without unnecessary delays. Its transparent fees and terms provide you with a clear understanding of what to expect.
This straightforward approach helps borrowers build trust and confidence, ensuring they can make informed financial decisions.
- High maximum loan-to-value ratio of 95%
- Quick approval and funding process
- Transparent fee structure
Bethpage FCU
Best credit union
Why we picked it
Bethpage is a top choice for those who prefer credit union benefits. It offers competitive rates, tailored customer service, and excellent terms, making it a reliable option for Connecticut homeowners.
As a member-focused institution, Bethpage provides personalized services and financial products that cater to its members’ unique needs. A significant advantage of Bethpage is its attractive interest rates, which can result in considerable savings over the life of your loan.
Its flexible repayment terms allow you to structure your loan to align with your financial goals. The availability of substantial loan amounts also ensures you can access the funds you need for large projects or expenses.
- Attractive interest rates
- Flexible repayment terms
- Significant loan amounts available
LendingTree
Best marketplace
Why we picked it
LendingTree allows you to compare various HELOC options from different lenders. This tool can save you time and help you make an informed decision by comparing rates, terms, and other critical factors side by side. The platform’s user-friendly interface makes it simple to input your information and receive multiple offers tailored to your specific needs.
One benefit of using LendingTree is the variety of available financial products, allowing you to explore multiple avenues to secure the best possible terms. LendingTree does not charge direct fees for its service, meaning you can compare offers without incurring extra costs. This transparency and ease of use make LendingTree a valuable resource for anyone looking to find the best HELOC in Connecticut.
- Easy to compare multiple lenders
- Offers a variety of financial products
- No direct fees for using the service
Local Connecticut HELOC lenders
In addition to these national lenders, several local lenders have some of the best HELOC rates in Connecticut. All the local institutions we found have introductory HELOC rates you can lock in for the first six to 12 months.
| Lender | Rates (APR) | Location |
| Liberty Bank | 8.00% – 18% (5.99% intro APR for 12 months) | Middletown |
| Union Savings Bank | 8.50% – 18% (5.49% intro APR for 6 months) | Danbury |
About HELOC rates in Connecticut
HELOC rates in Connecticut aren’t too different from HELOCs in other states. No special rules or regulations make getting a HELOC in Connecticut particularly challenging.
Local lenders appear to have rates similar to national lenders. But some local institutions—and Bethpage, our top credit union, offer special introductory APR offers for the first six or 12 months. If you qualify for an intro rate, it could lower your borrowing costs.
The main factors that influence your HELOC rates are your credit score, debt-to-income ratio, and the amount of equity you have in your home. Depending on where you live in Connecticut, you may have more equity to access than others.
For instance, according to Zillow, Connecticut’s average home value is above the national average ($399,242 vs. $358,734). But in some wealthy towns, such as Darien, the average home value is $2,007,032. If you have 20% equity in your property, that’s almost $80,000 with Connecticut’s average home value—but $400,000 on a house in Darien. Usually, the higher the percentage of equity you own in your home, the lower your HELOC rates may be.
How your HELOC rate affects your overall loan cost
Getting the best HELOC rate in Connecticut should be a priority. Even shaving one percentage point off your rate can help you save thousands throughout your loan. In the example below, qualifying for an 8.50% rate versus 9.50% saves you $10,000.
| HELOC terms | HELOC A | HELOC B |
| Loan size | $50,000 | $50,000 |
| Interest rate | 9.25% | 8.50% |
| Total interest paid | $95,000 | $85,000 |
| Total cost of loan | $145,000 | $135,000 |
As you can see, APR has a massive impact on the cost of your loan. But you should look beyond the number itself to note whether your rates are variable or fixed and what the repayment terms will be.
Most HELOCs have variable interest rates that fluctuate with the Wall Street Prime Rate. This means your monthly payments can change at any time, which can make it harder to predict your total borrowing costs.
Some HELOC lenders let you convert a portion or all of your balance to a fixed rate. Looking for a lender with this perk can be smart if you’re worried about interest rate increases making your loan more expensive.
Repayment terms also play a significant role in your overall loan costs. HELOCs have two phases: a draw phase and a repayment phase.
- During the draw phase, some lenders allow you to make interest-only payments, which can keep your initial payments lower.
- But during the repayment phase, you begin making full payments. If you haven’t been paying down your principal balance all along, you may end up paying more interest overall.
How to get the lowest HELOC rates in Connecticut
Here’s how to get the lowest HELOC rates in Connecticut.
- Boost your credit score. Lenders typically offer the best rates to borrowers with good to excellent credit scores. The closer your FICO score is to 720 or higher, the better. It’s OK to hold off on getting a HELOC to improve your credit first.
- Evaluate your equity. Lenders generally allow you to borrow up to 85% of your home’s value minus your outstanding mortgage balance. Not sure what this means for you? Subtract your current mortgage balance from your home’s value to calculate your equity percentage.
- Get multiple offers. You may find the best HELOC rates in Connecticut at any of the national lenders mentioned above or at local institutions.
- Look for introductory rates. Remember to consider the introductory rates and how they might change over time. But also look at your rate once the introductory period ends and how that will influence your costs.
How to apply for a HELOC in Connecticut
Applying for a HELOC in Connecticut is similar to getting a HELOC anywhere else in the U.S. After you’ve shopped around and found the best offer for your financial situation, you’ll want to submit a formal application.
Follow these steps to do that:
- Find out how to apply. Most lenders let you apply online through their website. But for local institutions, you may need to visit a local branch. Find out this information first, so you can prepare.
- Gather up your documents. You’ll usually need a copy of your current mortgage and most recent billing statement, income verification documents (pay stubs, W-2s, and tax returns), and all your personal information, including your Social Security number and government-issued photo ID.
- Submit your application. The lender will then review everything and order an appraisal to determine your home’s current value.
- Wait for a decision. If you’re approved, you’ll review your agreement and ask any questions if something is unclear. Then you’ll sign everything.
- Start using your HELOC. Once the loan is approved, the lender will set up your HELOC account. You can then start drawing from your account with checks or a card.
FAQ
What credit score do you need for a Connecticut HELOC?
For a HELOC in Connecticut, lenders typically look for a good to excellent credit score. The closer your FICO score is to 720 or higher, the better your chances of securing a favorable rate.
What are the typical fees for a Connecticut HELOC?
When applying for a HELOC in Connecticut, you can expect a variety of fees, including appraisal fees, application fees, and closing costs. These fees can vary depending on the lender. It’s essential to review each lender’s fee structure to understand the loan’s total cost.
Are there any special programs or incentives for Connecticut HELOCs?
Local lenders like Liberty Bank and Union Savings Bank offer introductory APR rates for the first six to twelve months, which can significantly lower initial borrowing costs.
How we chose the best HELOCs in Connecticut
LendEDU evaluates HELOC lenders to help readers find the best student loans. 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 Connecticut.
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 the best online HELOCs in Connecticut
| Company | Rates (APR) | LendEDU rating (out of 5) |
| Figure | 8.80% – 17.45% | 4.9 |
| Hitch | 8.25% – 13.00% | 4.4 |
| Bethpage FCU | Starting at 8.50% | 4.5 |
| LendingTree | Starting at 6.99% | 4.7 |
The post Connecticut HELOC Rates and Lenders appeared first on LendEDU.