Minnesota HELOC Rates and Lenders

A home equity line of credit (HELOC) can unlock many options for financing the things that make your life better. But first, you’ll need to sort through another layer of options: which lender to choose. 

Minnesota HELOCs are available from local and nationwide lenders, each with pros and cons. 

Reviews of the best online HELOCs in Minnesota

Online lenders are often a good start when researching your HELOC options in Minnesota. It’s easy to compare and contrast your rates and manage your account since most nationwide lenders provide robust online interfaces and a smooth, streamlined process. 

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.

Aven

Best Customer Reviews

4.8 _/5

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Why we picked it

Aven offers Minnesota homeowners a reliable way to tap into their home equity with a HELOC. With fixed interest rates, borrowers enjoy stable monthly payments, and Aven’s Lowest Rate Guarantee ensures you’re getting a competitive deal. Checking your rate won’t affect your credit score, making it easier to explore your options.

The 100% digital application process is fast, with approval in just 15 minutes and funds available within three days. Aven also provides an optional debt protection plan through Securian, which covers your payments for up to six months if you lose your job. With more than 3,450 five-star reviews, Aven is recognized for its speedy, user-friendly service.

• 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

Best credit union

4.7 _/5

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Why we picked it

FourLeaf offers HELOCs with a low fixed introductory rate for creditworthy borrowers. This lender is an excellent option for homeowners needing lines of credit due to its lack of upfront fees and wide range of borrowing amounts. It provides the financial leverage required for home renovations or other major expenses. 

FourLeaf’s commitment to customer service and flexible loan terms make it an excellent choice for those looking to maximize their home equity. The straightforward application process and competitive rates further enhance its appeal, ensuring borrowers can access the necessary funds.

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

Local HELOCs in Minnesota

Minnesota-based lenders have more incentive to win your business since there’s a smaller pool of potential customers. Going with local lenders in Minnesota to obtain your HELOC might be a better fit if you prefer quality customer service. That’s especially true if you prefer working with people face-to-face.  

Company	Rates (APR)	Location
Minnesota Bank & Trust	Starting from 9.25%	St. Paul
Wings Financial Credit Union	Starting from 8.25%	Apple Valley
Affinity Plus Federal Credit Union	Starting from 7.98%	St. Paul

Credit unions, such as Wings Financial and Affinity Plus, are great options since these are locally-based, nonprofit organizations that pass profits off to members through lower rates on Minnesota HELOCs. You’ll need to join the credit union first, with many based in your local community. 

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

Online lenders generally offer a quicker and easier path to taking out your HELOC. For example, Figure can usually assess your home’s value and have you sign the HELOC documents remotely, and that’s fairly typical of online lenders. 

Local lenders may require in-person appraisals and signings. However, you won’t be able to walk into a local Figure branch if you run into any snags because there are none. 

In addition, most local options for Minnesota HELOCs come from banks and credit unions, as opposed to companies that only offer home equity financing. They may offer special rates and deals if you use some of their banking services, too. Minnesota Bank & Trust offers a 0.75% rate discount if you keep a lot in savings, for example. 

How do Minnesota HELOC rates compare to other states?

Interestingly, HELOC rates don’t generally vary much by state. Nationwide, most people are paying an average rate of 10.04%, according to LendEDU research. That’s within the range that most Minnesota HELOCs are charging. Affinity Plus charges between 7.98% and 18%, for example. 

Instead, your rates depend on many other factors, such as how large of a line of credit you’re taking out, your credit score, and more. Minnesotans have the highest average credit score in the U.S. 

Minnesota home values also tend to be lower. According to Redfin, the median sales price in May 2024 was $439,716 nationwide versus $354,900 in Minnesota. That means most Minnesota HELOCs are probably for smaller amounts, but smaller HELOCs also mean smaller interest rates. 

How to get the best HELOC rates in Minnesota

Qualifying for better rates on Minnesota HELOCs works the same as in other states, too. Lenders use several factors to calculate your rates, and you can potentially tweak each one of these to dial in the best rate for you:

• Income: HELOC payments vary tremendously, so lenders will check that your income is stable enough to afford those fluctuating payments. 
• Credit score: Most lenders require a credit score of 640 or higher. The best rates go to those with excellent credit, which you can build over time. 
• Loan-to-value ratio: Between your HELOC and your first mortgage (if any), you can generally borrow up to 85% of your home’s value, depending on the lender.
• Debt-to-income ratio: Many lenders limit your borrowing ability so that you’re not spending more than 43% of your monthly income across all your debt payments.

Lenders use some or all of these factors to determine your interest rate and put together a broader picture of whether you’re a good candidate for a HELOC or not. If you are, most lenders will generally reward you with lower rates. 

Shopping around for rates is important since every lender prices Minnesota HELOCs differently.

How can readers budget for the variable payments of a HELOC? Because HELOC payments can vary, I recommend that you budget for what is expected to be the highest interest rate (for example, the interest rate environment we are in now) and expect to pay the higher amount each month during the repayment terms.

If this fits in the budget without impeding non-discretionary and discretionary spending, then the borrower should be able to safely afford the variable-rate HELOC. 

Erin Kinkade, CFP®

Are there any Minnesota-specific requirements or regulations?

Minnesota doesn’t have any laws governing second mortgages (an umbrella term for other debts attached to your home besides your mortgage) aside from specific rules and procedures if your home is foreclosed upon. 

However, it’s important to know that most HELOC lenders, in general, will require you to keep the same types of property insurance in place, such as homeowners insurance and flood insurance, if applicable.

FAQ 

What credit score do you need for a Minnesota HELOC?

Most lenders in Minnesota look for a good credit score to secure a HELOC. A score of 680 or higher is often considered favorable. Some lenders may approve applications with scores as low as 620, but higher scores translate to better interest rates and more favorable terms. 

It’s always wise to check with individual lenders because requirements can vary.

What are the typical fees for a Minnesota HELOC?

HELOC fees in Minnesota can include application fees, annual fees, and closing costs. Application fees range from $0 to a few hundred dollars. Some lenders charge annual fees, which can be around $50 to $100. Closing costs, which cover appraisal fees and title search fees, can range from 2% to 5% of the credit line. 

It’s crucial to review each lender’s fee structure before committing.

Are there any special programs or incentives for Minnesota HELOCs?

Yes, Minnesota offers several incentives for HELOC borrowers. Some lenders provide discounted rates or reduced fees for new customers. Others may offer special rates for individuals with excellent credit scores or those who enroll in automatic payments. 

Some Minnesota credit unions and community banks may provide unique incentives, such as waived initial fees or lower closing costs. Always explore various options and programs to find the best deal.

How we chose the best Minnesota HELOC lenders

LendEDU evaluates HELOC lenders to help readers find the best HELOCs. Accessibility is important to this evaluation, so our editorial ratings system primarily focuses on companies available in most U.S. states. That’s why the lenders we selected in the online section have editorial ratings. They’ve gone through an extensive review process and were determined to offer superior products compared to other lenders. We’ve also independently verified that these companies are available in Minnesota.

Since most local lenders aren’t available outside state lines, they haven’t gone through the same review process as the online lenders. Instead, we found them through separate research and determined that each offered solutions worthy of consideration by readers.

Recap of Minnesota HELOC rates and lenders