Michigan HELOC Rates and Lenders

Looking for the best Michigan HELOC rates? Taking time to shop around is a major win-win because lowering your rate by even a few percentage points could save you thousands in interest. 

Whether you prefer an online or local lender, we’ve found the best HELOC lenders in the Great Lakes State. Keep reading to find the right loan for your needs and budget.

Best online HELOCs in Michigan

An online home equity line of credit is an excellent choice if you like the idea of applying from the comfort of your home, often with competitive rates and faster approval times than traditional banks.

Our analysis found that the best online HELOC lenders for Michigan residents are Figure, LendingTree, and FourLeaf Federal Credit Union. These lenders offer low fees, flexible draw periods, and exceptional customer service. 

Read more below to find the best fit for your needs.

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.

Aven

Best Customer Reviews

4.8 _/5

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Why we picked it

For Michigan homeowners, Aven‘s HELOC offers a fast and convenient way to access home equity. Borrowers can benefit from fixed interest rates, ensuring stable monthly payments, and the Lowest Rate Guarantee means competitive pricing. You can check your rate without impacting your credit score, making the process easy from the start.

The fully digital application takes just 15 minutes for approval, and funds can be available in as little as three days. Michigan residents can also opt for Aven’s optional debt protection plan through Securian, which covers up to six months of payments if you lose your job. 

• Fixed interest rates
• Lowest Rate Guarantee
• Optional debt protection through Securian
• Fully digital application process
• 3,600 5-star reviews on Trustpilot (as of September 2024)
• 3-day funding after signing

Loan details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $250,000
Draw period	5 years
Repayment terms	5, 10, 15, or 30 years
Funding time	3 days from signing
Properties	All types
Min. credit score	640

FourLeaf FCU

Local HELOCs in Michigan

While online HELOC lenders offer convenience and competitive rates, some Michigan homeowners may prefer working with a local lender. Local banks and credit unions often provide personalized service and a deeper understanding of the local housing market. They may also have more lenient lending criteria.

Our analysis found that these five local HELOC lenders offer among the best rates in Michigan:

Company	Rates (APR)	Location
Comerica Bank	9.00%  – 18.00%	Detroit
Consumers Credit Union	8.50%  – 18.00% (5.99% fixed APR for 12 months)	Oshtemo
Eastern Michigan Bank	8.50%  – 18.00%	Croswell
Lake Michigan Credit Union	8.49%  – 18.00%	Grand Rapids
Michigan Schools & Government Credit Union (MSGCU)	8.50%  – 18.00%	Clinton Township

If you’re considering a local lender, rates are important, but don’t stop there. Other factors may influence which lender you choose to go with. For example, if the lender requires you to apply in person, you may want to choose the one with branches nearest you. 

Also, keep an eye out for lenders offering introductory rates, such as Consumers Credit Union’s fixed APR for 12 months. These intro rates can help you save money on interest up front, but make sure the rate you get after the intro period is still competitive.

Each lender has different draw and repayment period lengths, minimum and maximum loan amounts, and fees. These factors may limit your options if you’re looking for a loan with the longest repayment period for an unusually high or low loan amount. 

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

The differences between online and local HELOC lenders in Michigan are subtle, but they can have a massive impact on which type of lender you choose for your loan. 

Online lenders, such as Figure, LendingTree, and FourLeaf FCU, use technology to stay on the cutting edge of the HELOC market. They offer the convenience of applying from home and tend to have faster approval times. In some cases, you don’t even need an appraisal. Figure is one of the only companies offering fixed-rate HELOCs.

But if you prefer more face-to-face interactions, a local lender might be a better fit. Local lenders, including Comerica Bank, Consumers Credit Union, and Lake Michigan Credit Union, offer competitive rates. They’ll also have a deeper understanding of Michigan’s local housing market and may be more flexible with eligibility requirements if you’re already a customer. 

Some local lenders, such as Consumers Credit Union, offer attractive intro rates that can help you save on interest at first. However, double-check that the rate remains competitive after the intro period.

How do Michigan HELOC rates compare to other states? 

The national average HELOC rate is 9.18% as of June 2024. Because HELOC rates are influenced by the federal funds rate or prime rate, you can expect interest rates to be similar across states.

Rates in Michigan typically range from 6.99% to 18.00% based on our research, which aligns with the current national average. As with any state, HELOC rates are influenced by more than just your zip code. Lenders also factor in your credit score, income, and how much home equity you have.

This is why it’s important to compare offers from multiple lenders—you may be able to find a better deal regardless of your location. For example, LendingTree’s starting rates may be lower than most starting rates from local Michigan HELOC lenders.

How to get the best HELOC rates in Michigan

The best way to get the lowest Michigan HELOC rates is to exceed the eligibility requirements and shop around for the best lender. 

• Your credit score is a major factor in determining your HELOC rate. A credit score of 780 or higher will help you secure the lowest rates. Lenders view a higher credit score as an indication that you’re a low-risk borrower.
• Lenders will also consider your debt-to-income ratio, employment history, and home equity. To qualify for a HELOC in Michigan, you typically need at least 15% to 20% equity in your home.

Beyond these eligibility requirements, take time to get quotes from at least three lenders. You could miss out on huge savings by skipping this step because you won’t know whether a lender is offering you a good deal unless you shop around. 

If you’re short on time, use an online HELOC marketplace such as LendingTree to speed up the process. A one-stop-shop platform can help you find the most competitive rates in the shortest amount of time.

Are there any Michigan-specific requirements or regulations?

Michigan has one primary state-specific regulation that could affect HELOC borrowers: the Michigan Mortgage Loan Originator Licensing Act. This act requires all mortgage loan originators, including those offering HELOCs, to be licensed and registered with the Nationwide Mortgage Licensing System (NMLS). 

Although this act doesn’t have a direct effect on HELOC rates or terms, it provides a layer of consumer protection by requiring lenders to meet certain qualifications and maintain proper licensing.

As with all states, Michigan HELOC borrowers have a three-day right of rescission under federal law. This provision allows you to cancel your HELOC within three business days of signing the loan documents for any reason. You can exercise this right without penalty if you have concerns or change your mind during this period.

FAQ 

What credit score do you need for a Michigan HELOC? 

A credit score of at least 620 may be required for a Michigan HELOC. Some lenders might require higher scores for better rates and terms.

What are the typical fees for a Michigan HELOC? 

Typical fees for a Michigan HELOC include application fees, annual fees, closing costs, and appraisal fees. Depending on the lender and loan amount, these can range from a few hundred to several thousand dollars.

Are there any special programs or incentives for Michigan HELOCs? 

Some lenders may offer special programs or incentives for Michigan HELOCs, such as discounted rates for automatic payments from a linked account, no-closing-cost promotions, or rate discounts for high credit scores.

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

If you move to another state with a HELOC in Michigan, your HELOC remains tied to your Michigan property. You will still be responsible for making payments on the HELOC as agreed, and your lender may require you to notify them of the change in your primary residence.

How we chose the best Michigan 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 online Michigan HELOC rates and lenders