Michigan HELOC Rates and Lenders

Looking for the best Michigan HELOC rates? Taking time to shop around is a major win-win because lowering your rate by even a few percentage points could save you thousands in interest. 

Whether you prefer an online or local lender, we’ve found the best HELOC lenders in the Great Lakes State. Keep reading to find the right loan for your needs and budget.

Best online HELOCs in Michigan

An online home equity line of credit is an excellent choice if you like the idea of applying from the comfort of your home, often with competitive rates and faster approval times than traditional banks.

Our analysis found that the best online HELOC lenders for Michigan residents are Figure, LendingTree, and Bethpage Federal Credit Union. These lenders offer low fees, flexible draw periods, and exceptional customer service. 

Read more below to find the best fit for your needs.

Figure

Aven

Best Customer Reviews

4.8 _/5

LendEDU Rating

View Rates

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Why we picked it

For Michigan homeowners, Aven‘s HELOC offers a fast and convenient way to access home equity. Borrowers can benefit from fixed interest rates, ensuring stable monthly payments, and the Lowest Rate Guarantee means competitive pricing. You can check your rate without impacting your credit score, making the process easy from the start.

The fully digital application takes just 15 minutes for approval, and funds can be available in as little as three days. Michigan residents can also opt for Aven’s optional debt protection plan through Securian, which covers up to six months of payments if you lose your job. 

• Fixed interest rates
• Lowest Rate Guarantee
• Optional debt protection through Securian
• Fully digital application process
• 3,600 5-star reviews on Trustpilot (as of September 2024)
• 3-day funding after signing

Loan details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $250,000
Draw period	5 years
Repayment terms	5, 10, 15, or 30 years
Funding time	3 days from signing
Properties	All types
Min. credit score	640

Bethpage FCU

LendingTree

Local HELOCs in Michigan

While online HELOC lenders offer convenience and competitive rates, some Michigan homeowners may prefer working with a local lender. Local banks and credit unions often provide personalized service and a deeper understanding of the local housing market. They may also have more lenient lending criteria.

Our analysis found that these five local HELOC lenders offer among the best rates in Michigan:

Company	Rates (APR)	Location
Comerica Bank	9.00%  – 18.00%	Detroit
Consumers Credit Union	8.50%  – 18.00% (5.99% fixed APR for 12 months)	Oshtemo
Eastern Michigan Bank	8.50%  – 18.00%	Croswell
Lake Michigan Credit Union	8.49%  – 18.00%	Grand Rapids
Michigan Schools & Government Credit Union (MSGCU)	8.50%  – 18.00%	Clinton Township

If you’re considering a local lender, rates are important, but don’t stop there. Other factors may influence which lender you choose to go with. For example, if the lender requires you to apply in person, you may want to choose the one with branches nearest you. 

Also, keep an eye out for lenders offering introductory rates, such as Consumers Credit Union’s fixed APR for 12 months. These intro rates can help you save money on interest up front, but make sure the rate you get after the intro period is still competitive.

Each lender has different draw and repayment period lengths, minimum and maximum loan amounts, and fees. These factors may limit your options if you’re looking for a loan with the longest repayment period for an unusually high or low loan amount. 

What’s the difference between online and local HELOCs in Michigan?

The differences between online and local HELOC lenders in Michigan are subtle, but they can have a massive impact on which type of lender you choose for your loan. 

Online lenders, such as Figure, LendingTree, and Bethpage FCU, use technology to stay on the cutting edge of the HELOC market. They offer the convenience of applying from home and tend to have faster approval times. In some cases, you don’t even need an appraisal. Figure is one of the only companies offering fixed-rate HELOCs.

But if you prefer more face-to-face interactions, a local lender might be a better fit. Local lenders, including Comerica Bank, Consumers Credit Union, and Lake Michigan Credit Union, offer competitive rates. They’ll also have a deeper understanding of Michigan’s local housing market and may be more flexible with eligibility requirements if you’re already a customer. 

Some local lenders, such as Consumers Credit Union, offer attractive intro rates that can help you save on interest at first. However, double-check that the rate remains competitive after the intro period.

How do Michigan HELOC rates compare to other states? 

The national average HELOC rate is 9.18% as of June 2024. Because HELOC rates are influenced by the federal funds rate or prime rate, you can expect interest rates to be similar across states.

Rates in Michigan typically range from 6.99% to 18.00% based on our research, which aligns with the current national average. As with any state, HELOC rates are influenced by more than just your zip code. Lenders also factor in your credit score, income, and how much home equity you have.

This is why it’s important to compare offers from multiple lenders—you may be able to find a better deal regardless of your location. For example, LendingTree’s starting rates may be lower than most starting rates from local Michigan HELOC lenders.

How to get the best HELOC rates in Michigan

The best way to get the lowest Michigan HELOC rates is to exceed the eligibility requirements and shop around for the best lender. 

• Your credit score is a major factor in determining your HELOC rate. A credit score of 780 or higher will help you secure the lowest rates. Lenders view a higher credit score as an indication that you’re a low-risk borrower.
• Lenders will also consider your debt-to-income ratio, employment history, and home equity. To qualify for a HELOC in Michigan, you typically need at least 15% to 20% equity in your home.

Beyond these eligibility requirements, take time to get quotes from at least three lenders. You could miss out on huge savings by skipping this step because you won’t know whether a lender is offering you a good deal unless you shop around. 

If you’re short on time, use an online HELOC marketplace such as LendingTree to speed up the process. A one-stop-shop platform can help you find the most competitive rates in the shortest amount of time.

Are there any Michigan-specific requirements or regulations?

Michigan has one primary state-specific regulation that could affect HELOC borrowers: the Michigan Mortgage Loan Originator Licensing Act. This act requires all mortgage loan originators, including those offering HELOCs, to be licensed and registered with the Nationwide Mortgage Licensing System (NMLS). 

Although this act doesn’t have a direct effect on HELOC rates or terms, it provides a layer of consumer protection by requiring lenders to meet certain qualifications and maintain proper licensing.

As with all states, Michigan HELOC borrowers have a three-day right of rescission under federal law. This provision allows you to cancel your HELOC within three business days of signing the loan documents for any reason. You can exercise this right without penalty if you have concerns or change your mind during this period.

FAQ 

What credit score do you need for a Michigan HELOC? 

A credit score of at least 620 may be required for a Michigan HELOC. Some lenders might require higher scores for better rates and terms.

What are the typical fees for a Michigan HELOC? 

Typical fees for a Michigan HELOC include application fees, annual fees, closing costs, and appraisal fees. Depending on the lender and loan amount, these can range from a few hundred to several thousand dollars.

Are there any special programs or incentives for Michigan HELOCs? 

Some lenders may offer special programs or incentives for Michigan HELOCs, such as discounted rates for automatic payments from a linked account, no-closing-cost promotions, or rate discounts for high credit scores.

What happens if I move to another state with a HELOC in Michigan? 

If you move to another state with a HELOC in Michigan, your HELOC remains tied to your Michigan property. You will still be responsible for making payments on the HELOC as agreed, and your lender may require you to notify them of the change in your primary residence.

How we chose the best Michigan HELOCs

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.

Recap of online Michigan HELOC rates and lenders