A home equity line of credit (HELOC) allows you to borrow money based on the equity in your home. It’s a revolving line of credit similar to a credit card; you only repay what you use. Rates may be lower than other loans or lines of credit, making it a solid choice for homeowners in […]
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A home equity line of credit (HELOC) allows you to borrow money based on the equity in your home. It’s a revolving line of credit similar to a credit card; you only repay what you use. Rates may be lower than other loans or lines of credit, making it a solid choice for homeowners in Maine. Lower rates mean you pay less for interest, so the loan costs less.
Maine HELOCs offer maximum flexibility for homeowners in the Pine Tree State. Here are the best online lenders with the most competitive rates.
Borrowers in Maine can choose between two types of HELOC lenders: online or in-person. Online lenders work with borrowers across the country, making it an accessible option for many homeowners. These lenders also allow you to borrow from the comfort of your home.
The following online lenders offer the best rates for a HELOC in Maine.
Best overall
Figure is our top pick for HELOCs in Maine due to its innovative online platform, which caters to the unique needs of Maine homeowners. With competitive interest rates and rapid access to funds, Figure’s streamlined application process is perfect for those looking for efficiency and convenience in the Pine Tree State.
| 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 and secondary homes |
| Credit score | 640 |
Best for large HELOCs
Thanks to its generous loan limits and flexible terms, Bethpage is the ideal choice for Mainers seeking large HELOCs. Known for its exceptional customer service and competitive rates, Bethpage is perfect for those with substantial home equity in Maine, providing tailored solutions to meet their financial goals.
| 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 | 39 days, on average |
| Properties | Primary |
| Credit score | 670 |
Best marketplace
LendingTree is the best marketplace for HELOCs in Maine due to its extensive network of lenders. This platform enables homeowners to compare multiple offers, empowering borrowers to find the best rates and terms tailored to their specific needs. This makes financing home projects or managing debt easier in the diverse Maine real estate landscape.
| Rates (APR) | Starts at 6.99% |
| Loan amounts | Vary by lender |
| Draw period | Varies by lender |
| Repayment term | Varies by lender |
| Funding time | Varies by lender |
| Properties | Vary by lender |
| Credit score | 620 |
Local banks and credit unions in Maine also offer HELOCs for state residents. It can be helpful to work with a local lender that knows the market and can provide more personalized attention as you complete the application process. You might also get a lower rate with a local lender due to more flexibility with underwriting.
The following local lenders in Maine offer competitive HELOC rates, including promotions and introductory rates for new borrowers.
| Company | Rates (APR) | Location |
| Bangor Savings Bank | 7.50% – 10.50% | Bangor |
| Maine Community Bank | Starting at 6.870% | Westbrook |
| Maine State Credit Union | 5.99% introductory rate | Augusta |
| Coast Line Credit Union | Starting at 6.125% | South Portland |
A benefit of working with a local lender is having access to in-person help. As you search for the best local lender, start with banks and credit unions in your town. Call or visit a nearby branch and ask about current rates for HELOCs, including promotions.
Here are a few other factors to consider when deciding between lenders.
Determining whether an online or local HELOC lender is a better fit can take time. Here’s how to decide.
An online lender might be better if one or more of the following statements applies to you.
You might prefer a local lender in Maine if the following statements apply to you.
Maine’s HELOC rates are similar to those of other states. Most borrowers can expect a rate between 8% and 10%, depending on their credit score and other factors.
The Federal Reserve sets the federal funds rate, which is the rate at which banks can lend money to other banks. The rate affects other lending rates, including mortgages, HELOCs, personal loans, and credit cards. When the federal rate increases, other types of rates increase, and the reverse is also true—rates decrease with the federal rate.
The prime rate is the lowest rate lenders offer the most qualified borrowers. It determines the rates for HELOCs. The typical formula for the prime rate is the federal funds rate plus 3%. So if the federal rate is 6%, you can expect a prime rate of 9% for HELOCs.
Your credit score has the most significant impact on your HELOC rate. Borrowers with lower scores can expect higher rates, and those with high scores can expect lower rates that cost less. You can take steps to improve your score before applying, such as paying down outstanding debt, making all payments on time, and checking your credit report for errors so you can dispute any inaccuracies.
Regardless of your score, comparing lenders is the most effective way to get the lowest rate for a HELOC in Maine. Prequalify with multiple lenders to view sample rates and find the best deal on a loan. Most lenders allow you to prequalify without damaging your credit score. It’s a quick process that only takes a few minutes.
It’s also important to consider the total cost of the loan, including fees, closing costs, and variable rates that can change.
Maine has consumer lending laws to protect consumers, but the laws don’t specifically apply to HELOCs. To qualify for a HELOC in Maine, you need proof of homeowners insurance, equity in your home, proof of income, a low debt-to-income ratio, and a solid credit score. Your lender can answer specific questions about your home’s eligibility if you have any.
To qualify for a HELOC in Maine, lenders may look for a credit score of at least 620. However, a higher credit score (above 700) can help you secure more favorable interest rates and terms. Improving your credit score before applying can lower the cost of your loan. Steps to boost your credit score include paying down debt, making all payments on time, and correcting any errors on your credit report.
Fees for a HELOC can include application fees, appraisal fees, annual fees, and closing costs. Application and appraisal fees might range from $100 to $500, and annual fees can be around $50 to $75. Closing costs typically range from 2% to 5% of the total loan amount. Some lenders may also charge fees for maintaining the HELOC, such as inactivity fees if you do not use the line of credit. Consider keeping a spreadsheet with all the different fees so it’s easier to compare which lender will be best suited for you.
Maine offers several programs that may provide incentives or assistance for homeowners looking to access home equity. The Maine State Housing Authority (MaineHousing) offers various home repair and improvement loans that might complement a HELOC.
Local credit unions and community banks may offer special rates or terms for HELOCs to support local homeowners. It’s worthwhile to check with local lenders for any state-specific programs or incentives that might be available
If you move to another state while you have a HELOC on your property in Maine, the terms of your loan typically remain the same. You will continue to be responsible for making payments according to the original agreement.
However, relocating might complicate certain aspects, such as accessing loan services or managing your account. It’s important to communicate with your lender about your move to eliminate disruptions in your payment process. If you plan to sell the property, you’ll pay off the HELOC as part of the sale transaction.
Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.
These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
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