Maryland HELOC Rates and Lenders

If you’re looking to knock out an expensive task on your to-do list, you have options. One is opening a home equity line of credit (HELOC), which acts as a second mortgage and allows you to use your home’s equity. 

HELOCs have a revolving credit line, similar to a credit card. With many HELOCs, you can borrow as much as you need within a generous time frame––often 10 years. Find out more about some of the best Maryland HELOCs available and what to consider before applying in our guide.

Best online HELOCs in Maryland 

Online HELOC lenders, such as the ones we’ve listed below, can save you time by allowing you to apply from anywhere, get almost instant decisions, and access fast funds. They can offer an easy way to compare rates and terms side by side in minutes. 

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

Fixed 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 FCU

Best credit union

4.7 _/5

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Why we picked it

We chose FourLeaf for its strong local presence and reputation for excellent customer service. It offers competitive HELOC rates, making it a favorable option for Maryland residents who value community-focused financial institutions.

FourLeaf’s commitment to its members is evident in its flexible terms and lack of application or annual fees. FourLeaf Federal Credit Union is known for its comprehensive support throughout the borrowing process. It provides personalized guidance and resources, ensuring that members understand their options and can make informed decisions about their home equity loans.

• Borrow $10,000 – $1 million
• No application, origination, or appraisal fees
• Convert part 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
Draw period	10 years
Repayment term	Up to 20 years
Funding time	6 to 10 weeks on average
Properties	Primary homes, second homes, or condos
Credit score	670

LendingTree

Best marketplace

4.5 _/5

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Why we picked it

LendingTree stands out for its unique platform that allows Maryland homeowners to compare multiple HELOC offers from various lenders. This comparison-shopping approach helps users find the best rates and terms tailored to their needs, making the process more transparent and competitive. LendingTree’s extensive network of lenders ensures that borrowers have access to a wide range of options.LendingTree’s user-friendly online platform simplifies the process of obtaining a HELOC. It provides educational resources to help users understand the nuances of home equity loans, ensuring they can make informed decisions. This combination of accessibility, variety, and support makes LendingTree a top choice for HELOC seekers.

• Easy comparison of multiple HELOC offers
• Access to a wide network of lenders
• No impact on credit score to compare offers
• User-friendly online platform
• Educational resources to assist borrowers

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 Maryland 

Local lenders offer advantages online lenders may not, such as individualized customer service and a deeper knowledge of the local landscape. Interacting with a representative in or near your town may help you get quick answers, special benefits, and support.

Company	Rates (APR)*	Locations
MECU Credit Union	5.99% – 18.00% 5.99% for 12 months**, then prime minus 0.25%	Multiple (Central Maryland)
Point Breeze Credit Union	2.49% – 18.00% 2.49% for 12 months**, then based on prime rate	Multiple (Central Maryland)
Central Credit Union of Maryland	1.49% – 18.00% 1.49% for 12 months**, then prime rate minus 0.25%	Baltimore, Loch Raven, and Perry Point

The rates above are variable after the 12-month introductory period ends, and the lenders base their rates on the prime rate, which banks offer their best-qualified customers, along with a margin. 

If you’re considering applying for a Maryland HELOC with any of these lenders, in addition to the low introductory rate, pay attention to the closing costs and other fees you’ll owe.

• Point Breeze Credit Union and Central Credit Union of Maryland’s introductory rates are among the lowest we found, and both offer the option to make low monthly payments for up to 10 years, where you’re only paying the interest on your loan.
• MECU Credit Union offers a respectable introductory rate during the first year. It even covers closing costs, which can be 2% to 5% of the line of credit you’re taking out. 

Beyond the best rate for your HELOC, the lender’s location and specific member benefits you’ll use can help you decide on the best option.

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

Choose between online and local Maryland HELOC lenders based on your financial situation, what you plan to do with the funds, how much you value convenience and customer service, and whether you can pay off your loan sooner rather than later.

Online lenders offer fast decisions and allow for easy rate comparisons from your home. Local lenders can provide a safer way to discuss personal information and an opportunity for professional guidance.

The local lenders we mentioned above can be best for borrowers who want a low introductory APR, to visit a local branch when needed, and unique credit union member benefits.

But if you prefer an easy, user-friendly online experience, fixed rates, and easy comparison shopping, an online lender might be right for you.

How do Maryland HELOC rates compare to other states? 

In July 2024, the national average HELOC rate is around 9.17%. Many lenders set their rates based on the prime rate, which is now 8.50%, plus an additional margin. In Maryland, lenders tend to follow this trend, using the prime rate as a benchmark, with some offering rates a bit lower. 

For creditworthy borrowers with sufficient home equity (often 15% to 20%), living in Maryland doesn’t have a significant impact on HELOC rates, aside from attractive introductory rates during the first year.

Maryland’s average HELOC rates are slightly below the national average. With excellent credit, you might secure rates a few percentage points lower than the national average or those in other states. The key is to maintain a strong credit history, which can help reduce the interest you pay over the life of the loan, saving you time and money. Be sure to consider all your options before committing to a HELOC.

How to get the best HELOC rates in Maryland

Your eligibility for a HELOC in Maryland can depend on your home equity, credit score, and debt-to-income ratio (DTI)—your monthly debt payments divided by your monthly gross income. A lower credit score or higher DTI increases your risk to lenders, making it harder to secure favorable terms.

To improve your chances of getting a reasonable rate, aim for a FICO credit score above 800, limit your debt relative to your income, and increase your home equity by making extra mortgage payments if possible. 

Take the time to compare offers. Spending 20 minutes or less comparing rates and terms can help you find the best HELOC. Start by checking rates online and visiting local lenders. When evaluating your options, consider the following:

• Rates: Look beyond the introductory rates to understand what you’ll pay after the initial period; the intro period is short compared to the loan’s lifetime.
• Fees and terms: Read the fine print to identify any additional costs, such as application or appraisal fees.
• Reputation: Check customer reviews online to ensure the lender is reputable. Verifying a lender’s legitimacy can take less than two minutes.

Are there any Maryland-specific requirements or regulations? 

In Maryland, you may be required to borrow at least $5,000. Consider another option if you need to borrow less. Before applying for a HELOC in Maryland, read the disclosures. The specific terms, including homeowner’s and flood insurance, should be clear. 

You’re responsible for informing your lender of significant changes that may affect your home’s value and the terms of your HELOC. If you sell your home, for instance, your lender would require repayment before you get any of the sale proceeds.

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. Borrowing is a risk, whether through HELOCs or another avenue. So if your project can wait, consider pushing it to a later date and saving up over time.

FAQ 

What credit score do you need for a Maryland HELOC?

Most lenders require a minimum credit score of around 620 to qualify for a HELOC in Maryland. However, to secure the best rates and terms, a FICO credit score above 700 is ideal. Lenders will also consider other factors, such as income, employment history, and debt-to-income ratio, when evaluating your application.

What are the typical fees for a Maryland HELOC?

Typical fees for a Maryland HELOC can include application fees, appraisal fees, annual fees, and closing costs. These fees can range from a few hundred to several thousand dollars, depending on the lender and the loan amount. Some lenders may waive certain fees or offer promotions to reduce upfront costs, so be sure to inquire about fee structures when comparing HELOC options.

Are there any special programs or incentives for Maryland HELOCs?

Some lenders and financial institutions may offer special programs or incentives for Maryland HELOCs. These can include discounted rates for current customers, no-closing-cost options, or promotional rate periods. Certain community banks or credit unions might have unique programs tailored to local residents. It’s best to check with various lenders to see whether special offers are available.

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

If you move to another state with a HELOC in Maryland, the terms of your loan remain the same. However, you must continue making payments as agreed upon in your original loan agreement. It’s important to notify your lender of your new address to ensure you receive all necessary communications. Moving shouldn’t affect the loan itself, but if you sell the home securing the HELOC, you’ll need to pay off the remaining balance from the proceeds of the sale.

How we determined the best Maryland 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 Maryland HELOC rates and lenders