Best HELOCs With No Closing Costs

Home equity lines of credit (HELOCs) allow homeowners to borrow against their property’s equity, but lenders typically charge various closing fees to recoup the administrative expenses of setting it up.

These fees, such as application and origination charges, appraisal costs, and title insurance, often total 2% to 5% of your loan amount, representing an upfront cost hurdle for borrowers.

We’ll explore your options to find the best HELOCs without closing costs.

Lender	Our rating	Fees
Figure	4.9/5	0% to 4.99% origination fee (no out-of-pocket costs)
Bethpage FCU	4.2/5	Waives closing costs for lines under $500,000
Bank of America	4.1/5	Waives closing costs for lines under $1 million

Reviews of the best HELOCs with no closing costs

We’ve researched reputable lenders to pinpoint which ones offer no-closing-cost HELOCs with the best rates and terms. Explore our best picks below.

Figure: Best overall HELOC

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LendEDU rating: 4.9 / 5 

• 100% online application process with five-minute approval
• Get funded in as few as 5 days
• No out-of-pocket costs

Figure is our highest-rated HELOC lender thanks to its streamlined online application and funding process. With Figure, you can access up to $400,000 of your home’s equity without ever leaving home. 

A Figure HELOC has no closing costs, so you don’t have to worry about out-of-pocket fees. That said, it charges a one-time origination fee deducted from your total loan amount. So if you borrow $100,000 with a 2% origination fee, they’ll subtract $2,000 from your loan. 

Figure doesn’t charge annual fees or penalties for paying off your line of credit early. If you value speed, convenience and competitive rates, it’s an excellent choice for a no-closing-cost HELOC. It approves applications in as little as five minutes and funds loans in as little as five days.

Figure HELOCs have these terms: 

• Rates (APR): Fixed
• Loan amounts: $20,000 – $400,000
• Funding time: 5 days
• Draw period: 2 – 5 years
• Repayment term: 5, 10, 15, and 30 years
• Minimum credit score: 640
• Maximum LTV: 85%
• Fees: Origination fee (up to 4.99%)

Bethpage Federal Credit Union: Best credit union HELOC

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LendEDU rating: 4.2 / 5 

• Covers all closing costs on HELOCs up to $500,000
• 12-month introductory rate for new customers
• Best credit union HELOC

Bethpage Federal Credit Union offers highly competitive rates on its HELOCs, including an introductory rate of 6.99% for the first year. It covers all closing costs for lines under $500,000, saving borrowers hundreds or even thousands of dollars in fees.

Bethpage prides itself on its fast funding times, averaging only 34 days from application to getting your funds. Once approved, you have 10 years to draw from your line of credit as needed followed by a five to 20-year repayment period. Fixed-rate options are also available.

To qualify for a Bethpage FCU membership and HELOC, you must open a $5 savings account.

Bethpage HELOCs have these terms: 

• Rates (APR): 6.99% fixed for 12 months, then as low as 8.50% variable APR
• Loan amounts: $25,000 – $500,000
• Funding time: 34 days
• Draw period: 10 years
• Repayment term: 5 – 20 years
• Minimum credit score: Not listed (720 for best introductory rate)
• Maximum LTV: 75%
• Fees: Must pay back closing costs if HELOC is closed within three years

Bank of America: Best for HELOC discounts

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LendEDU rating: 4.1 / 5

• Offers discounts for autopay, large withdrawals and BofA Preferred Rewards members
• Covers all closing costs on HELOCs up to $1 million
• Takes about 15 minutes to submit your application

Bank of America’s HELOC is very appealing for those seeking a loan with no closing costs or annual fees. It offers a true $0 closing cost HELOC for lines of credit up to $1 million. This can save borrowers hundreds, if not thousands, in fees that are common on other lenders’ HELOCs. 

Even better, BofA provides homeowners with three HELOC discounts. 

• Get a 0.25% discount for setting up automatic payments from a Bank of America checking or savings account.
• Receive a 0.10% discount each time you withdraw at least $10,000 (max discount is 1.50%).
• Earn a discount of up to 0.625% for being a Preferred Rewards member. 

BofA HELOCs have these terms: 

• Rates (APR): Variable or fixed with rate-lock; Starting APRs vary by state
• Loan amounts: Up to $1 million
• Funding time: Varies
• Draw period: 10 years
• Repayment term: 20 years
• Minimum credit score: Not stated
• Maximum LTV: 85%
• Fees: None

Ask the expert

Natalie Slagle

CFP®

Review the fine details of no-closing-cost HELOCs to understand the overall cost and what your financial situation can and can’t afford. A no-closing-cost HELOC may not require cash upfront, but it may charge annual or origination fees within the loan itself. For some, this may not be a problem. For others looking for the “cheapest” option long-term, it will require more work to calculate what is best for you.

Is a HELOC my best option?

If you’re considering tapping into your home equity, it’s important to explore whether a HELOC is truly the best vehicle for your needs or if an alternative may work better. Two common alternatives are a cash-out refinance or a home equity loan.

• A cash-out refinance replaces your current mortgage with a new, larger loan while providing cash at closing. It has a fixed rate and term like a traditional mortgage. But closing costs are typically higher than a HELOC.
• A home equity loan is a fixed-rate, fixed-term loan for a lump sum amount secured by your home. Closing costs may be lower than a refinance, but you’ll have two mortgage payments instead of one. Also, you won’t have the flexibility to borrow only what you need, like with a HELOC. 

Consider how you’ll use the funds and your repayment preferences to determine the best option. 

A HELOC shines for flexibility because you can draw from it whenever needed, but it has variable interest rates that make payments unpredictable. A home equity loan or cash-out refinance is better for a one-time large expense at a known monthly cost. 

Evaluate costs, terms, and repayment comfort levels at different interest rates. Consulting a loan officer can also help you analyze the pros and cons based on your financial situation.

How to get the best HELOC without closing costs

There are a few things you can do to get the best no-closing-cost HELOC: 

• Shop around. Check with multiple banks and credit unions to compare their rates—and try to get pre-qualified with a soft credit check if you can. This allows you to shop around without dinging your credit score. 
• Look for special features. Some lenders might offer benefits like HELOC rate locks, introductory periods, or discounts for automatic payments, which can help you save money in the long run. 
• Check the details. Every HELOC is different. Some require you to draw 100% of your line amount the first time you use it, while others let you only draw what you need. Likewise, most HELOCs have a 10-year draw period, but some may be shorter or longer than this. Choose a HELOC with terms that match your needs.

Once you’ve shortlisted potential lenders, the next step is to apply for a HELOC and await approval. The full HELOC closing process takes two to six weeks. However, some lenders (like Figure) can fund HELOC loans in as little as five days. 

During this time, gather tax returns, pay stubs, and any other required documents. Read all paperwork thoroughly to understand fees and any prepayment penalties that will apply if you pay it off early. 

Ask the expert

Natalie Slagle

CFP®

Ask your banking institution how your payment will be calculated, especially on a variable HELOC. It’s important to ensure you can afford what could be the most expensive monthly payment. This may be the lender’s highest variable rate on the most amount of equity used. Also consider how your payment is being applied. I’ve worked with clients who paid interest only for years and years without realizing they were not making principal payments. Come up with a plan to pay both interest and principal payments so that your loan is paid off in a reasonable amount of time.

FAQ

How does a HELOC work?

A HELOC uses your home equity as a line of credit you can draw on. With approval, the lender sets a borrowing limit based on your home value. 

You only pay interest on what you withdraw, letting you take what you need. You make interest-only payments at first, then transition to full payments later. You can use funds for home projects, debt consolidation, or other expenses.

How do closing costs work?

Traditional HELOCs charge closing fees like origination, appraisal, and title insurance. These can total 2% to 5% of your loan. 

So if you’re approved for a HELOC of $100,000, you’d pay $2,000 to $5,000 in closing costs. But some lenders offer “no closing cost” HELOCs that waive these fees, lowering your upfront costs.

Is a no-closing-cost HELOC automatically cheaper than other options?

Not always. Some lenders may waive closing costs to make it look like you’re getting a good deal, but then they’ll recoup those expenses by charging higher interest rates or excessive fees on the back end. 

This can feel like a sneaky trick, so comparing rates, terms, and fees from multiple lenders is so important.

How do I know whether I got the best deal on a HELOC?

The only way to know if you got the best deal on a HELOC is to take your time and comparison shop. Get rate quotes from several lenders and compare all the details—not just the starting rate. Look at maximum loan size, credit requirements and terms too. 

Watch for sneaky fees like draw fees, annual fees, and early prepayment penalties. For instance, some lenders will waive all closing costs but charge you a termination fee equal to those closing costs if you end your loan within three years of opening. 

Are there other home equity options that don’t charge closing costs?

Yes. Some lenders offer cash-out refinances and home equity loans with no closing fees. These function like a fixed-rate mortgage instead of a revolving line of credit. Shop around—credit unions and online lenders may also provide competitive offers on these products.

Recap of the best HELOCs with no closing costs

Lender	Our rating	Fees
Figure	4.9/5	0% to 4.99% origination fee (no out-of-pocket costs)
Bethpage FCU	4.2/5	Waives closing costs for lines under $500,000
Bank of America	4.1/5	Waives closing costs for lines under $1 million