Rhode Island HELOC Rates and Lenders

In this article, you’ll learn about some of the best Rhode Island HELOCs, their credit score requirements, and how to find the best rates before starting your home project.

Whether you’re looking to liven up a fixer-upper or invest in some much-needed home improvements in Rhode Island, you could leverage the equity in your home using a home equity line of credit (HELOC) instead of tying up limited cash savings. 

Our guide below will provide the information you need, including some of the best Rhode Island HELOCs available and considerations to make before you apply.

Reviews of the best online HELOCs in Rhode Island

Generally, online HELOC lenders save time by allowing you to apply from anywhere and receive near-instantaneous decisions, and quick access to funds. 

They’re usually the easiest way to compare rates and terms in minutes. This is still the case with the online Rhode Island HELOCs below. 

Figure

Best Overall

4.9 _/5

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Why we picked it

Figure is our top pick for a HELOC due to its blend of competitive fixed rates, quick funding, and flexible terms. 

Advanced technologies such as blockchain and AI ensure a fast and efficient approval process, with funds available in as few as five days. This makes Figure ideal for borrowers seeking quick and reliable access to home equity without the traditional banking hassle.

• Fixed interest rates
• No in-person appraisal is needed
• Option to redraw up to 100% of funds
• Funding can be available in as few as 5 days
• Check your rate without affecting your credit score

Loan details

Rates (APR)	6.55% – 15.54%
Loan amounts	$20,000 – $750,000
Draw period	2 – 5 years
Repayment term	10, 15, 20 or 30 years
Funding time	As few as 5 days
Properties	Primary home, second home, or investment property
Minimum credit score	640

Figure Disclosures

1. The Figure Fixed Rate Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw.
2. Approval may be granted in five minutes but is ultimately subject to verification of income and employment, as well as verification that your property is in at least average condition with a property condition report. Five business day funding timeline assumes closing the loan with our remote online notary, and where loan amounts are under $400,000 which would not require an appraisal. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing, or that require a waiting period prior to closing, or where loan amounts exceed $400,000.
3. To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
4. A Figure HELOC is secured with your home as collateral, whereas personal loans and credit cards are not.
5. Our loan amounts range from a minimum of $15,000 to a maximum of $750,000. For properties located in AK, the minimum loan amount is $25,001 and for properties located in TX, the minimum loan amount is $35,000. Your maximum loan amount may be lower than $750,000, and will ultimately depend on your home value, lien position, credit profile, verified income amount, and equity available at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models or appraisal. Loan amounts above $400,000 are subject to appraisal.
6. Available initial APRs range from 6.65% to 15.25%, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select ten year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Your actual rate will depend on many factors such as your credit, combined loan-to-value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay a higher origination fee in exchange for a lower rate. Rates change frequently so your exact APR will depend on the date you apply. Additionally, for the variable rate HELOC, the APR is based on an interest rate index and the credit agreement margin, and an increase or decrease of the index value will cause a corresponding increase or decrease in the variable APR after account opening subject to a rate floor and rate cap, and your monthly payments may increase or decrease as the APR changes. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), or an appraisal if your loan amount exceeds $400,000 ($500-$2,000, depending on property type, property value, and state), manual notarization if your county doesn’t permit eNotary ($350), and recording fees ($0 – $315) and recording taxes, which vary by state and county ($0-$1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
7. You should consult a tax advisor regarding the deductibility of interest and charges to your Figure Home Equity Line.
8. The Figure Variable Rate Home Equity Line is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on the selected rate at application and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the initial draw, plus a stated margin; however, the rate and payment will adjust monthly based on the market and the fluctuation of the Index subject to a Rate Cap and Rate Floor. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. The index can change at any time and the unpaid balance of all draws are subject to the monthly variable rate. Accordingly, variable rates are based on the market and may change after account opening. This product is not available in: MA, VA, MS, IL, WI, VT, DC, OK, TX, NY, CO, WY, WV, SC.

FourLeaf

Best credit union

4.7 _/5

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Why we picked it

FourLeaf offers HELOCs with a low fixed introductory rate for creditworthy borrowers. This lender is an excellent option for homeowners needing lines of credit due to its lack of upfront fees and wide range of borrowing amounts. It provides the financial leverage required for home renovations or other major expenses. 

FourLeaf’s commitment to customer service and flexible loan terms make it an excellent choice for those looking to maximize their home equity. The straightforward application process and competitive rates further enhance its appeal, ensuring borrowers can access the necessary funds.

• Borrow $10,000 – $1 million
• No application, origination, or appraisal fees
• Convert some or all of your HELOC to a fixed-rate option
• 12-month fixed introductory rate for qualified borrowersⓘ
• $0 closing costs

Loan details

Rates (APR)	6.99% for 12 months, then variable starting at 6.75%ⓘ
Loan amounts	$10,000 – $1 million
Repayment terms	Up to 20 years
Funding time	6 to 10 weeks on average
Properties	Primary homes, second homes, or condos
Credit score	670

LendingTree

Best for comparison shopping

4.5 _/5

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Why we picked it

LendingTree is the top choice for comparison shopping, allowing Rhode Island residents to compare multiple HELOC offers from various lenders. 

The platform’s user-friendly interface and comprehensive comparison tools make finding the best rates and terms tailored to individual financial situations easy.

With LendingTree’s extensive network of lenders, borrowers can confidently choose the most competitive HELOC option.

• Access to multiple lenders
• Comprehensive comparison tools
• Competitive rates
• Customizable loan options

Loan details

Rates (APR)	Starting at 6.24%
Loan amounts	$10,000 – $2 million
Draw period	2 – 20 years
Repayment term	5 – 30 years
Funding time	Varies
Properties	Varies
Credit score	Varies, 620 advisable

Local HELOCs in Rhode Island

On the other hand, local lenders offer some advantages online lenders typically don’t: security for your personal information and one-on-one customer service. Interacting with a real person may help you get quick answers, special perks, and the support you might seek.

Company	Rates (APR)	Location
Rhode Island Credit Union	4.99% for 12 months, then .51% below prime rate	Providence
People’s Credit Union	7.50% (variable) based on The Wall Street Journal’s Prime	Middletown
Navigant Credit Union	6.50% for 12 months, then .50% below prime	Central Falls
BankNewport	6.99% for 6 months, then based on prime	Providence

If you’re considering applying for a Rhode Island HELOC with any of these lenders, pay close attention to:

• Introductory APRs
• APR based on prime rates
• Branch locations

Rhode Island Credit Union offers an attractively low APR, which might be great for homeowners aiming to complete their project in a couple of months and pay the loan off quickly.  

After the introductory period, its rates are still competitive with Navigant’s, as well as BankNewport’s, which are slightly higher but may be convenient for those already using its financial services. Meanwhile, People’s Credit Union’s HELOC can be a reliable option if you don’t care to risk a drastic rate change.

Beyond getting the best rate for your HELOC, the lender’s location and how convenient borrowing may be––depending on whether you’d receive borrower discounts or other benefits for doing so––will ultimately help you decide on the best option.

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

Choosing between online and local Rhode Island HELOC lenders will boil down to your financial situation, home project logistics, and how much you value convenience and customer service.

Online lenders offer practically instant decisions and allow for easy rate comparisons from the comfort of your own home. Local lenders provide a safer way to discuss personal information and an opportunity for professional guidance.

Consider beginning your search with local lenders if your main concerns are: 

• Personal service 
• Applying where you already bank
• Getting service at a physical branch when needed
• Borrower benefits

However, you may want to consider an online lender like the ones we’ve reviewed above if you prefer: 

• User-friendliness
• Fixed rates
• Fast funding
• Rate comparison shopping
• Larger loans with competitive introductory rates

How do Rhode Island HELOC rates compare to other states? 

Several lenders nationwide base their rates on the prime rate and a margin they determine. Living in Rhode Island won’t typically impact HELOC rates by much as long as you have good credit and enough equity in your home. 

Rhode Island HELOC rate averages don’t significantly deviate from the national average. However, you may be able to snag rates slightly better than the national average or other states if you’re approved by a lender that offers rates below the prime rate––like a few of the local lenders mentioned above.

Bottom line: Do your best to maintain a healthy credit history, and don’t borrow before you’ve weighed all your options.

How to get the best HELOC rates in Rhode Island 

Whether you’re eligible for a HELOC in Rhode Island depends on your home equity, income, credit score, and debt-to-income (DTI) ratio, which is the amount of debt payments you make each month divided by your monthly gross income. 

The lower your credit score or the higher your DTI ratio is, the riskier you become to a lender because you may be less likely to pay them back. 

Lenders prefer low-risk borrowers. To give yourself the best chance at a low rate, you should focus on reaching and achieving excellent credit score status, limiting your debt compared to your income, and increasing the equity in your home by making extra or above-minimum mortgage payments. 

But don’t forget to shop around. Taking 15 to 20 minutes––or less––to compare offers can help you more easily find the best HELOC rates and terms based on these important factors. Start by checking rates online and visiting local lenders. When comparing your options, pay close attention to:

• Rates: Don’t just look at the introductory rates the lender offers. Find out what you’d pay afterward, since the intro period is very short compared to the rest of the life of the loan.
• Fees and terms: Read the fine print, and make sure you understand what other costs may be involved, such as application or appraisal fees.
• Reputation: Once you find a lender you may apply to, look up customer reviews. It’ll take less than two minutes to determine whether a lender is legitimate.

Are there any Rhode Island-specific requirements or regulations? 

HELOC requirements and regulations are generally similar across the states. Before applying for a HELOC in Rhode Island or elsewhere, remember that it’s your right to receive clear disclosures about the loan terms. If a lender doesn’t provide you with these, it’s a red flag––and it violates the law. 

Typically, lenders require homeowners insurance, among other criteria, before approving your HELOC. So, you should also be prepared to inform them of significant changes that may affect your home’s value and the terms of your HELOC.

Before entering into a HELOC or any loan agreement, gather all the necessary information to give you peace of mind and empower you to make decisions that will bring you closer to your financial and personal goals. 

FAQ

What credit score do you need for a Rhode Island HELOC?

Lenders generally look for a credit score of at least 620. However, a higher score can help you secure a better interest rate. Some lenders may offer products tailored to a broader range of credit profiles, so it’s wise to shop around.

What are the typical fees for a Rhode Island HELOC?

Typical fees for a Rhode Island HELOC include application, appraisal, and annual fees. Expect to pay between $500 to $1,000 for these initial charges. Some lenders may waive certain fees as part of a promotional offer, so asking about current incentives is beneficial.

Are there any special programs or incentives for Rhode Island HELOCs?

Yes, some lenders may offer special programs or incentives for Rhode Island HELOCs. These can include limited-time promotions such as reduced introductory rates, fee waivers, or discounts for setting up automatic payments. Always check with the lender for the most up-to-date information on available offers.

How we chose the best HELOCs in Rhode Island

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 Rhode Island HELOC lenders