Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Equity Loan and HELOC Promotions Updated Jul 03, 2024 8-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Catherine Collins Written by Catherine Collins Expertise: Budgeting, Mortgages, Credit, Debt, Personal loans, Small business, Entrepreneurship Learn more about Catherine Collins Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® If you’re considering a home equity loan or line of credit (HELOC), you may encounter lenders’ various home equity promotions. These can range from cash-back offers to waived fees and competitive interest rates. Home equity promotions may seem attractive, but it’s essential to understand how they work and whether they suit your financial situation. Table of Contents Skip to Section Why do lenders offer promotions?HELOC promotionsHome equity loan promotionsHow important are promotions when comparing companies?How to choose a home equity loan or HELOC Why do lenders offer promotions on home equity loans and lines of credit? A home equity loan is a one-time lump sum you borrow against the equity in your home. Many feature fixed interest rates and a fixed term. A HELOC is a revolving line of credit that allows you to borrow against your home’s equity as needed. Many HELOCs feature variable interest rates. Several lenders offering these products do so with promotions attached—such as discounted interest rates for a specific period or waived fees—to attract new customers and get new business. Not all lenders offer these promotions, but many do. Here are some examples of home equity loan and HELOC promotions that lenders currently offer. LenderProductPromotion detailsBethpageHELOC12-month intro rate of 6.99% for VantageScores of 720 and up; then a variable rateBank of AmericaHELOC6-month intro rate of 7.490% for customers with excellent creditUnited Federal Credit UnionHELOC6-month intro rate of 5.99% APR with no annual fee and no closing costs with a minimum credit score of 640 and minimum loan amount of $10,000Central Pacific BankHELOCFor CPB Exceptional Checking Account holders a 2-year intro rate starting at 6.95% depending on credit score and intro fixed-rate time frame plus a credit of up to $500 to help pay closing costsIdeal Credit UnionHome equity loanEither 0.25% APR rate reduction or $700 off closing costsAlltru Credit UnionHome equity loanGet a $300 gift card when borrowing a minimum of $10,000First Federal Credit UnionHome equity loanNo payments for the first 90 daysIndustrial Federal Credit UnionHome equity loanNo closing costs (except when appraisal is required) for borrowers with a credit score of 730 or higher borrowing a minimum of $5,000 HELOC promotions Various HELOC lenders offer introductory rate APR promotions and discounts for qualified borrowers. Other offers might include cash-back incentives and waived closing costs. Here are some examples. Bethpage View Rates Introductory rate of 6.99% for the first 12 monthsAvailable to borrowers with VantageScores of 720 and upVariable rate after the introductory period Bethpage FCU offers a competitive HELOC with a low, fixed promotional rate for creditworthy borrowers. After this initial period, the rate adjusts to a variable rate, making it a flexible option for homeowners looking to tap into their home equity. With a Bethpage HELOC, you can borrow up to $1 million. You won’t owe application, origination, or appraisal fees—and the credit union will waive your closing costs. After the promotional rate ends, you can convert part of your HELOC to a fixed-rate loan at no additional cost. Bank of America View Rates Introductory rate of 7.490% for the first six monthsAvailable to borrowers with excellent creditVariable rate after the introductory period Bank of America offers a HELOC with a competitive introductory rate for the first six months. The BOA website states this offer is available to borrowers with excellent credit. After the introductory period, the rate switches to a variable rate. A benefit of Bank of America is that there are branches in every state, so if you have questions or want to speak to a banker in person, there should be a Bank of America near you. United Federal Credit Union View Rates Introductory rate of 5.99% for the first six months with no closing costsAvailable to borrowers with a minimum credit score of 640 and a minimum loan amount of $10,000Variable rate after the introductory period United Federal Credit Union offers a HELOC promotion of a 5.99% introductory rate for the first six months, plus no closing costs. Buyers must meet credit qualifications and borrow at least $10,000 to get this promotion. After the initial promotion, your rate becomes variable. Borrowers get low monthly payments, a HELOC Visa card, and a 10 year draw period. Additionally, this bank offers a HELOC and an interest-only HELOC for borrowers. Central Pacific Bank View Rates Introductory rate starting at 6.95% for two years plus a credit of up to $500Available to borrowers with a minimum credit score of 640 and a minimum loan amount of $10,000Must be a CPB Exceptional Checking Account holder to qualify Central Pacific Bank is located in Hawaii and is only available for Hawaiian properties (which, kudos to you if you own one!) This bank offers an exceptional introductory rate for an extended period of time. The rate varies depending on the time frame you choose between two to five years. To get this introductory rate, you must meet other qualifications, like borrowing a minimum of $10,000 and having a minimum credit score of 640. Home equity loan promotions Lenders offer various home equity loan promotions to qualified buyers. These might include rate discounts for autopay or for being a current customer and waived closing costs, among others. Here are some examples of current home equity loan promotions. Ideal Credit Union View Rates Borrowers can choose a 0.25% APR rate reduction or $700 off closing costs.Fixed rates starting at 6.625%Repayment terms up to 20 years Ideal Credit Union is a credit union located in Minnesota; however, you don’t have to live in Minnesota to become a member. Anyone can become a member by making a one-time $5.00 donation to the John D. Miller foundation. Currently, this lender offers borrowers $700 towards closing costs or a 0.25% rate reduction when taking out a home equity loan. Alltru Credit Union View Rates Borrowers can get a $300 gift card with an approved loanMust borrow at least $10,000Repayment terms up to 15 years, and rates start at 7.24% Alltru Credit Union is located in St. Louis, and to be eligible to join, you must live, work, worship, or attend school in the City of St. Louis, St. Louis County, or St. Charles County. Currently, borrowers who take out a home equity loan will get a $300 gift card they can use at a variety of stores. You must borrow at least $10,000 to be eligible for this offer. First Federal Credit Union View Rates No payments for the first 90 days of the loanMust borrow at least $10,000Repayment terms up to 15 years First Federal Credit Union is located in Iowa, and membership is only for people who live, work, worship, or attend school in Linn, Benton, Dickinson, Clay, and Buena Vista counties. Home equity loan rates start at 6.99%. Currently, First Federal Credit Union is giving home equity loan borrowers a grace period of 90 days. The loan does accrue interest during this time, but there are no payments due. Borrowers can choose repayment terms of up to 15 years, and they must borrow at least $10,000 to be eligible for this promotion. Industrial Federal Credit Union View Rates No closing costs, except if an appraisal is requiredLoan is for 60 monthsRates start at 7.425% APR Industrial Federal Credit Union is located in Indiana, but anyone can become a member by making a $5 donation to a select group of charities, including humane societies. This lender offers a home equity loan with no closing costs for a 60-month loan term. Their rates are competitive, starting at 7.425% APR. However, borrowers must pay for a home appraisal if the lender requires it. How important are promotions when comparing companies? Home equity and HELOC promotions can be important to consider when comparing lenders. However, it’s also crucial to look at the loan terms outside of the promotional period and to consider a promotion’s limitations: The low introductory rates may only last for several months or a year, after which the rate increases, making the loan more expensive in the long run.Promotions may require you to meet certain qualifications, such as having a high credit score or a certain level of equity in your home.Promotions may only be available for a limited time or to a limited number of borrowers. Consider the promotional terms, interest rates, and fees when comparing companies. These factors can give you a better sense of the loan’s actual cost and whether it suits your needs. How to choose a home equity loan or HELOC By comparing these factors, you can determine which home equity loan promotion best fits your needs and financial situation. Interest rates: Compare each promotion’s interest rates and see which offers the lowest HELOC rate or the best terms for your needs.Fees: Check for any loan-related fees, such as application fees, origination fees, closing costs, or annual fees.Loan terms: Consider the length of the loan and the repayment period.Borrowing limits: Compare each promotion’s maximum amount you can borrow and determine which will provide the funds you need.Reputation of the lender: Research the lender’s reputation, customer service, and reviews to ensure it has a good track record. Recap of home equity loan and HELOC promotions LenderProductPromotion detailsBethpageHELOC12-month intro rate of 6.99% for VantageScores of 720 and up; then a variable rateBank of AmericaHELOC6-month intro rate of 7.490% for customers with excellent creditUnited Federal Credit UnionHELOC6-month intro rate of 5.99% APR with no annual fee and no closing costs with a minimum credit score of 640 and minimum loan amount of $10,000Central Pacific BankHELOCFor CPB Exceptional Checking Account holders, a 2-year intro rate starting at 6.95% depending on credit score and intro fixed-rate time frame plus a credit of up to $500 to help pay closing costsIdeal Credit UnionHome equity loanEither 0.25% APR rate reduction or $700 off closing costsAlltru Credit UnionHome equity loanGet a $300 gift card when borrowing a minimum of $10,000First Federal Credit UnionHome equity loanNo payments for the first 90 daysIndustrial Federal Credit UnionHome equity loanNo closing costs (except when appraisal is required) for borrowers with a credit score of 730 or higher borrowing a minimum of $5,000