Best HELOC Rates and Lenders in Arizona

Homeowners in Arizona can apply for a home equity line of credit (HELOC) from online lenders or local banks and credit unions. We’ve reviewed a few lenders that rated highly in our evaluation of HELOCs available nationwide below and explain how to find the best HELOC rates in Arizona.

Best HELOCs in Arizona

Company	Rates (APR)	Our Rating
Figure	8.80% – 17.45%	4.9/5
LendingTree	Starting at 6.99%	4.7/5
Bethpage FCU	Starting at 8.50%	4.2/5

Check out our reviews below to find a HELOC lender that meets your needs.

Figure: Best overall

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LendEDU rating: 4.9 out of 5

• Get funds in 5 days
• Borrow $20,000 – $400,000
• Flexible repayment terms 

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. However, note that upon HELOC origination, Figure requires you to draw 100% of your funds.

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LendingTree: Best for comparison shopping

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NMLS #1136 Terms and Conditions apply.

LendEDU rating: 4.7 out of 5

• Borrow $10,000 to $2 million
• Compare offers from multiple lenders
• Checking your rates doesn’t affect your credit

LendingTree is not a lender but a marketplace that lets homeowners compare offers from HELOC and home equity loan lenders in its network. When you prequalify, you can review offers for both products and determine the best fit. It’s a perk that simplifies the application process.

LendingTree has no set eligibility requirements, costs, or credit score impacts when filling out its online form. If matched with a lender, you can expect to access your funds in as little as five days, depending on the lender.

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Bethpage FCU: Best credit union

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LendEDU rating: 4.2 out of 5

• Lowest introductory rate
• Fixed-rate option available 
• $10,000 – $1 million loan amounts

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. 

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Having a relationship with a lender may offer benefits, such as lower rates, peace of mind, and benefits connected with your current checking, savings, or investment accounts.

Erin Kinkade

CFP®

About HELOC rates in Arizona

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.

While HELOC rates don’t vary much state-to-state, it’s worth noting that home values in Arizona have gone up slightly recently. This is good news for HELOC holders since HELOC amounts and rates are affected by your loan-to-value ratio. Your credit score also affects 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. 

How your HELOC rate affects your overall loan cost

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. 

How to get the lowest HELOC rates in Arizona

Different factors determine your rate. Two significant factors are:

• Credit score: You can often get a lower APR if you have a higher credit score.
• Loan-to-value ratio: This is how much you borrow compared to how much equity you have in your home. 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.

How to apply for a HELOC in Arizona

It takes time to compare lenders and apply for a HELOC. Here’s how the application process works. 

1. Review your credit report. View your credit report to check for mistakes and determine which lenders offer loans for borrowers in your credit tier. If you notice any mistakes, dispute them with the credit reporting agency right away.
2. Determine your home equity. Calculate your home equity—the difference between your mortgage and the market value of your home. It helps determine how much you can borrow, and HELOC lenders often require at least 15%.
3. Find your documents. It’s wise to gather the necessary documentation before you apply to save time once you find the best lender. You often need proof of income, insurance documentation, and mortgage paperwork. 
4. Prequalify with select lenders. Research the best lenders and prequalify with a few to compare offers and find the most competitive rate. 
5. Finalize one application. Once you narrow it down to your top lender, finalize the application, and complete the process. 

FAQ

What is the lowest HELOC rate in Arizona?

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. 

What HELOC has the highest rates in Arizona?

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. 

What is the current HELOC rate in Arizona?

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. 

Will my Arizona HELOC have insurance requirements?

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.  

Do any lenders not offer HELOCs in Arizona, and why not?

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.

Recap of the best HELOC lenders in Arizona

Company	Rates (APR)	Our Rating
Figure	8.80% – 17.45%	4.9/5
LendingTree	Starting at 6.99%	4.7/5
Bethpage FCU	Starting at 8.50%	4.2/5