Alabama HELOC Rates and Lenders
As a homeowner in Alabama, you may be looking to tap into your home equity to pay for home improvements, consolidate debt, or cover other expenses. A home equity line of credit (HELOC) offers a flexible source of financing that you can draw on as needed and pay back as you go. To help you […]
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As a homeowner in Alabama, you may be looking to tap into your home equity to pay for home improvements, consolidate debt, or cover other expenses. A home equity line of credit (HELOC) offers a flexible source of financing that you can draw on as needed and pay back as you go.
To help you find the most affordable option, we’ve ranked and reviewed the best Alabama HELOCs based on interest rates, funding times, customer service, and other factors. Here are our top picks for Alabama HELOCs, including national and local lenders.
Best online HELOCs in Alabama
Our top recommendations for the best HELOCs in Alabama come from Figure, Bethpage Credit Union, and LendingTree. These lenders offer HELOCs to homeowners in multiple states, including those in Alabama.
Below, you’ll also find some options for local lenders in Alabama. Note, however, that we’ve vetted and researched Figure, Bethpage, and LendingTree more thoroughly than the local Alabama lenders.
Figure
Best overall
Why we picked it
Figure is our pick for the best overall HELOC lender thanks to its fast funding and competitive rates. This online lender leverages blockchain and other technology to approve and disburse your funds quickly.
When you borrow from Figure, you’ll draw 100% of your loan amount upfront and start repayment on a term from five to 30 years. You can also make additional draws on your credit line during a draw period that spans two to five years.
Figure’s HELOCs come with competitive rates, and you can get a 0.25% rate discount for using autopay. Figure accepts credit scores starting at 640 and allows a loan-to-value ratio up to 95%.
- Fast approval and funding
- Multiple repayment options
- Competitive interest rates
Loan details
| Rates (APR) | 7.85% – 17.20% |
| Loan amounts | $15,000 – $400,000 |
| Draw period | 2 – 5 years |
| Repayment term | 5, 10, 15, or 30 years |
| Funding time | In as few as 5 days |
| Credit score | 640 |
Bethpage
Best credit union
Why we picked it
Bethpage Federal Credit Union offers HELOCs anywhere from $10,000 to $1 million. If you have a good credit score of 720 or higher, you could qualify for a fixed rate of 6.99% for the first 12 months of your HELOC, followed by a variable rate of 8.50%.
There are no application, origination, or appraisal fees, and Bethpage will cover closing costs for loan amounts up to $500,000. You can make interest-only payments during your 10-year draw period, followed by full payments after that.
You’ll need to become a member of this credit union to open a HELOC, but membership is open to anyone who opens a share account and deposits at least $5.
- Competitive introductory fixed rate
- No application, origination, or appraisal fees
- Bethpage covers closing costs for the first $500,000
Loan details
| Rates (APR) | 6.99% fixed rate for 12 months if your credit score is 720 or higher, followed by a variable rate of 8.50% |
| Loan amounts | $10,000 to $1 million |
| Draw period | 10 years |
| Repayment term | 20 years |
| Funding time | 6 – 10 weeks |
| Credit score | 670 |
LendingTree
Best marketplace
Why we picked it
LendingTree is an online loan marketplace that makes it easy to compare HELOC offers from multiple lenders at once. After entering some basic personal information, you can check your rates with LendingTree’s partners, which offer HELOCs anywhere from $10,000 to $2 million.
This process only involves a soft credit check, so it won’t impact your credit. LendingTree recommends a credit score of 780 or higher to qualify for the lowest HELOC rates but says some lenders accept scores starting at 620. If you find an offer that works for you, you can apply directly with the HELOC lender.
- Compare offers from multiple lenders at once
- Can access HELOCs up to $2 million
- Multiple repayment term and draw period options
Loan details
| Rates (APR) | Starting at 6.99% |
| Loan amounts | $10,000 – $2 million |
| Draw period | 2 – 20 years |
| Repayment term | 5 – 30 years |
| Funding time | Varies by lender |
| Credit score | 620 |
Local HELOCs in Alabama
As an Alabama resident, you can also explore HELOCs from local banks and credit unions. You might benefit from borrowing locally if you already have a relationship with your bank and can qualify for a rate discount or other perks.
You might also appreciate the option of in-person banking and customer service. Here are a few recommendations for Alabama HELOCs from local lenders.
| Company | Rates (APR) | Location |
| Regions Bank | 9.00% – 15.875% 6.99% introductory APR for the first six billing cycles | Headquartered in Birmingham, with 97 locations in Alabama (plus locations in 14 other states) |
| Alabama ONE Credit Union | 9.084% – 10.840% | Headquartered in Tuscaloosa, with 26 other branches in Alabama |
| Alabama Central Credit Union | Starting at 8.5% | Mobile, Homewood, Decatur, Russellville, Southside, Tuscaloosa, Muscle Shoals, Florence |
Consider factors such as interest rates, loan fees, draw periods, repayment terms, funding times, and appraisal requirements when comparing options. Also, know whether your interest rate is fixed or variable, as this can affect your overall borrowing costs.
What’s the difference between online and local HELOCs in Alabama?
Online HELOCs offer several benefits, such as a streamlined application and fast funding. Plus, many online lenders use innovative technologies that erase the need for an in-person appraisal of your home.
However, local HELOCs could offer competitive rates and the advantage of in-person banking, which you might prefer if you want to meet with a lending specialist face-to-face.
I always recommend pricing at least three or four lenders and doing your research to find the best HELOC rate. Comparing and contrasting different lenders is definitely recommended.
How do Alabama HELOC rates compare to other states?
HELOC rates in Alabama don’t appear to differ much from other states. The biggest factors affecting your rate will be the lender you choose, your credit score, loan amount, repayment terms, and other factors.
How to get the lowest HELOC rates in Alabama
There are several steps you can take to get the lowest HELOC rate in Alabama:
- Improve your credit: You’ll need good or excellent credit to access the best rates. Consider taking steps to boost your credit before you apply, such as paying down credit card balances.
- Compare repayment terms: The lender may offer lower or higher rates on different repayment terms, so compare your options to find a term with a competitive rate and payments you can afford.
- Look for rate discounts: Some banks offer rate cuts if you’re an existing customer or enroll in automatic payments. You might also score an introductory rate that saves you money for your loan’s first six or 12 months.
- Shop around: Before taking out a HELOC, shop for the best lender. Many lenders let you check your rates without impacting your credit score. You can also use a loan marketplace like LendingTree to check your rates with several lenders simultaneously.
As of June 2024, a HELOC rate of 6 – 7% would be considered a “good” rate. However, remember that you could refinance to a lower rate when interest rates stabilize and/or lower.
Are there any Alabama-specific requirements or regulations?
The requirements to take out a HELOC in Alabama are similar to those in other states. You’ll need to have sufficient equity in your home and can’t withdraw more than the lender’s maximum loan-to-value ratio.
You’ll provide documentation when you apply, which may include pay stubs, W-2s, tax returns, and homeownership records. The lender will also run a credit check and may require an appraisal of your home.
You might be able to claim a tax deduction on your HELOC interest if you’re using your HELOC “to buy, build, or substantially improve the residence.”
FAQ
What credit score do you need for an Alabama HELOC?
A HELOC in Alabama generally requires a credit score of at least 620. Higher credit scores can secure better rates and terms. Lenders may also consider your debt-to-income ratio and overall financial health.
What are the typical fees for an Alabama HELOC?
Typical fees for an Alabama HELOC include an application fee, an annual maintenance fee, and closing costs. Depending on the lender, these fees range from $200 to $1,000. Some lenders may waive certain fees as part of promotional offers.
Are there any special programs or incentives for Alabama HELOCs?
Yes, several lenders offer special programs or incentives for HELOCs in Alabama. These can include lower introductory rates, no closing costs, or discounts for current customers. It’s worth shopping around to find these offers.
How we chose the best HELOC lenders in Alabama
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 Alabama.
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 Alabama HELOC online lenders
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