Once you owe less on your mortgage than your home is worth, you can access the equity you’ve built. A home equity line of credit (HELOC) is one way to do so.
HELOCs provide flexibility by establishing a line of credit, which means you can spend what you need and not use the rest if you don’t need to. Plus, you only need to repay what you spend. This is in contrast with a home equity loan, which pays out as a lump sum—so you must repay the entire amount.
Most HELOCs offer variable interest rates, which are lower than you typically get with a credit card. Lenders offer different rates and terms, which can affect how much it costs to borrow money. Here’s how to find the best HELOC rates in Arizona.
In this guide:
Your location—including your state—influences your HELOC rates, especially since some lenders are only available in select states. However, borrowers in Arizona have access to a wide variety of lenders, including three of LendEDU’s top picks.
Other factors, such as your credit score and loan-to-value ratio, affect how much you pay. Comparing offers from multiple lenders is one of the most effective ways to secure a lower rate. The Consumer Financial Protection Bureau recommends reviewing loan offers from at least three lenders before deciding.
Here are three of the top HELOC lenders with the best rates in Arizona.
Click each lender’s name in the table below to find out more about its home equity products for Arizona residents.
| Lender | Product | APR in Arizona |
| Figure | HELOC | 8.55% – 17.15% |
| Spring EQ | HELOC and home equity loan | Starting at 10.00% |
| Bethpage FCU | HELOC | Starting at 8.50% (12-month intro rate) |
As our highest-rated lender, Figure earns an editorial rating of 4.9 out of 5. The company’s competitive rates start at 8.55%, but what sets it apart from other lenders is that the rates are fixed. Most HELOCs offer variable interest rates that can fluctuate with the market and change your monthly payment. With Figure, your monthly payment stays the same throughout the term.
Borrowers in Arizona can choose from various repayment term lengths, ranging from five to 30 years. Shorter terms provide additional flexibility and savings compared to taking decades to pay off the balance. It’s most beneficial if you plan to use the money for a defined project or expense and can pay it back in a shorter term.
Terms:
Spring EQ has an editorial rating of 4.3 out of 5. The company offers solid rates, but you might find lower offers elsewhere. However, Spring EQ is an excellent option if you’re trying to decide between a HELOC and a home equity loan. When you prequalify, you can review offers for both products and determine the best fit. It’s a perk that simplifies the application process.
Arizona homeowners must have at least a 620 credit score, which is lower than other lenders require and makes the HELOC more accessible. Once you finalize the application and approval process, you can expect to access your funds in 14 to 21 days. Plus, the loan-to-value maximum is higher than most lenders at 95%, so you can maximize how much you borrow.
Terms:
Bethpage FCU is our top credit union lender for HELOCs and earns an editorial rating of 4.2 out of 5. The lender offers one of the lowest introductory rates—6.99% for the first 12 months, which can help you save thousands of dollars in the first year. To qualify for the introductory rate, you must have a credit score of at least 720, make an initial draw of at least $25,000, and not exceed a loan-to-value ratio of 75%. If you meet the criteria, it’s an excellent offer.
Arizona homeowners undergoing an extensive renovation or rebuild can also benefit from the maximum loan amount of $1 million. Borrowers have the option to convert all or some of their HELOC to a fixed-rate option. It’s a helpful perk if you want the benefits of a fixed rate and the flexibility of a HELOC for different portions of your loan.
Terms:
CFP® Erin Kinkade recommends checking with local lenders too, such as your current bank or credit union:
Having a relationship with a lender may offer benefits, such as lower rates based on the length of your relationship, peace of mind so you can go to a place of business to talk with your lender, and other benefits connected with your current checking, savings, or investment accounts.
When you borrow money, the lender charges money in the form of an annual percentage rate (APR). The APR is a percentage of the loan amount you pay the lender. As a borrower, you want to minimize how much you have to pay to borrow money, so it’s best to secure the lowest possible rate.
HELOC terms typically last at least 10 years, so a lower or higher APR can affect your loan costs by thousands of dollars.
To help you see how interest rates can affect your finances, let’s take a look at the numbers. In this example, we’re considering a HELOC of $30,000 with a 15-year repayment term:
| Lower APR (8.50%) | Higher APR (12.00%) | |
| Total repayment cost | $53,175.94 | $64,809.08 |
In this example, you’d pay $11,000 more just because of a higher interest rate. Even a small increase in APR can cost you thousands over the life of your loan.
Different factors determine your rate. Two significant factors are your credit score and the loan-to-value ratio, or how much you borrow compared to how much equity you have in your home. You can often get a lower APR if you have a higher credit score. The same applies to your loan-to-value ratio: lower ratios typically equate to lower rates.
To find the best HELOC rate in Arizona, compare rates from multiple lenders. The Federal Trade Commission recommends borrowers review offers from different institutions, including credit unions, banks, online lenders, and mortgage companies.
Most lenders allow you to prequalify for a loan with a soft credit check, which won’t affect your score. Compare offers until you find the best rate, customer service, fees, and repayment terms.
It takes time to compare lenders and apply for a HELOC. Here’s how the application process works.
The lowest HELOC rate in Arizona depends on individual credit profiles and other factors. If you’re looking for the lowest rate, find lenders that match or beat the prime rate, which is 8.50% as of October 2023. Some lenders, such as Bethpage, offer introductory rates for the first few months that are lower than the prime rate.
Out of the top lenders for Arizona, Figure is the only one we researched that publishes its highest rate: 16.90%. Most HELOCs have variable rates, which can fluctuate with the market. Beyond that, lenders consider your credit score and other factors when determining your rate.
The current HELOC rate in Arizona starts at 8.50% and goes up to 18%. Your credit score and loan-to-value ratio help determine your APR. To secure the lowest rate, compare offers from multiple lenders.
You must have proof of home insurance to get a HELOC in Arizona. Most lenders require insurance because your house is collateral for the loan. If something happens to your home, the lender wants to ensure you can still repay the loan.
Some lenders only offer HELOCs in select states. For example, Hitch, one of our top-rated lenders, does not provide HELOCs in Arizona. States have different licensing requirements for lenders, and some only conduct business in certain states.
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