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Home Equity

Tennessee HELOCs

As home values rise across Tennessee, many homeowners are exploring a home equity line of credit (HELOC) as an option to tap into their home equity. A HELOC allows you to borrow against the equity in your home, using the value you own over and above any outstanding mortgage balance. 

With a HELOC, homeowners in Tennessee can access funds for purposes like home renovations, debt consolidation, and more. 

If you’ve been considering a HELOC but want to find the best interest rates available in the Volunteer State, this article is for you. We’ll cover how HELOCs work in Tennessee and tips for getting the lowest rates.

Can you get HELOC loans in Tennessee?

Most major banks and credit unions offer home equity lines of credit in Tennessee. Lenders typically lend up to 85% of a home’s appraised value minus your mortgage balance. So if your home is paid off and worth $200,000, you could borrow up to $170,000. 

If you use your HELOC to improve your primary residence, the interest you pay may be tax deductible. So HELOCs can be a good option for accessing affordable credit secured by your home in Tennessee. 

Just be sure to shop for the best rates and terms from multiple lenders. Offers can differ depending on your credit profile and how much equity you’ve built in your home.

HELOC rates in Tennessee

Home equity lines of credit typically use a base rate, like the Primate Rate, which is currently 8.50%. However, base rates can vary by lender. We’ve researched the best HELOC lenders in the Volunteer State to help you quickly evaluate your options. 

Here are we found to be the best online and local HELOC lenders in Tennessee. 

ProductAPR in TennesseeWhat you need to know
FigureHELOCVariesBest overall HELOC
Spring EQHome equity loan; HELOCVariesBest for comparing HELOC and home equity loan offers
Bethpage FCUHELOCStarting at 8.50% after 6.99% intro APR for 12 months)Best credit union HELOC
First South FinancialHELOC8.50% – 18% (1.99% intro APR for 6 months) Best for HELOC specials
Tennessee State BankHELOC8.50% – 18%Best for no closing costs
Home Federal BankHome equity loan; HELOC4.50% – 18%Best for low rates

Rates as of January 2024

The best online HELOC lenders in Tennessee

These online lenders have some of the best HELOC rates for Tennessee residents. 

Figure: Best overall HELOC

LendEDU rating: 4.9 out of 5 

  • Top-rated online lender for HELOCs
  • Offers loans up to $400,000
  • Can fund HELOCs in as little as five days

Figure prides itself on offering a quick and simple borrowing experience. You can get approved for a HELOC in just five minutes with no in-person appraisal required. Funding happens in as little as five days after signing closing documents online. 

Figure HELOCs have fixed interest rates, which is an unusual feature among HELOCs. You’re also required to draw 100% of your line amount initially, then can redraw in the future as you pay it back. Figure gives a 0.25% discount if you use autopay. 

Spring EQ: Best multi-product application

LendEDU rating: 4.3 out of 5 

  • Compare terms for both HELOC and home equity loans in one application
  • Access up to 95% of your home’s equity
  • Receive funds in 21 days on average

Spring EQ stands out for giving homeowners a choice between a HELOC and a home equity loan in one application. This is extremely convenient if you’re unsure which product better suits your needs. 

As a Tennessee homeowner looking to tap your home equity, Spring EQ makes it easy to compare multiple borrowing options. You can select the one with the lowest rates and most flexible terms by showing offers for both products.

Spring EQ also allows you to borrow up to 95% of your home’s value. This is a significantly higher amount than many competitors. Pairing this high loan-to-value with interest-only payment choices gives you maximum upfront savings on your HELOC.

Bethpage Federal Credit Union: Best credit union

LendEDU rating: 4.2 out of 5 

  • Introductory rate of 6.99% APR for 12 months
  • Bethpage pays all closing costs on HELOCs
  • Must join credit union to open

Bethpage FCU has competitive rates and terms for HELOCs. You can get a fixed rate for the first year as low as 6.99% APR. After that, the variable rate starts at the base Prime Rate of 8.50% APR. Bethpage also allows you to convert parts of your HELOC to a fixed-rate loan for five, 10, or 20 years.

The minimum loan amount is $25,000 and Bethpage pays all closing costs on loans up to $500,000. You only pay interest on what you borrow for the first 10 years, so a HELOC is flexible if you need funds for home repairs, tuition, or debt consolidation.

As a credit union, Bethpage only offers HELOCs to its members. To become a member, you must open a $5 savings account.

The best local HELOC lenders in Tennessee

If you’d prefer to work with a local bank, consider these HELOC lenders. 

First South Financial

  • Introductory rate of 1.99% APR for 6 months, as of January 2024
  • Loan-to-value ratios up to 90%
  • No closing costs, fees, or initial draw requirements

First South Financial offers Tennessee homeowners a competitive way to tap into their home equity. With its introductory rate under 2% (as of January 2024) and no origination fees, borrowing through its HELOC is extremely affordable in the short term. 

Homeowners can borrow up to 90% of their home’s value, which is a higher limit than typical lenders. The application process is also simple and fast. First South promises a streamlined approval so you can quickly access funds.

Tennessee State Bank

  • Offers HELOCs with variable interest rates as low as 8.50% (as of January 2024).
  • Requires a minimum credit score of 700 for best rates and terms.
  • Bank covers all closing costs and fees.

Tennessee State Bank offers two HELOC plans, both featuring variable rates. As of January 2024, the first plan’s rate starts as low as 10%. The second plan’s rates start at 8.50% for those with a minimum credit score of 700.  

The bank covers initial closing costs, including appraisals and credit reports. But if you close your HELOC within three years, you’ll face a termination fee. This fee includes all the costs the bank initially covered. 

Home Federal Bank

  • Offers a variable rate that starts as low as 4.5% (as of January 2024)
  • Maximum loan limit is $150,000
  • Bank covers closing costs

Federal Bank offers a HELOC with a variable rate as low as 4.5% if you have a minimum credit score of 650 and a maximum LTV of 80%. Like other lenders on our list, the maximum APR is 18%. 

There are no closing costs to take out a HELOC with Home Federal Bank. But there is a reimbursement fee if you close it within three years. Make sure to only borrow what you need. Also be aware rates are variable and could rise in the future, possibly increasing your monthly payments.

When choosing between a national or local lender, consider whether you want an in-person vs. a virtual relationship with your bank. Also, what do you value more: the reputation of a large, well-known bank or a highly rated local or regional bank?

Eric Kirste


How to get the lowest HELOC rates in Tennessee

Getting the lowest rate begins by focusing on the HELOC eligibility requirements lenders consider heavily when evaluating applications. 

  • Your credit score is one of the biggest factors that determine your interest rate, so make sure to pay all bills on time and keep your credit card balances low. Aim for a score of 700 or higher for the best rates.
  • Your debt-to-income ratio matters too. This measures your monthly debt obligations against your income and should ideally be under 36%. So if your monthly income is $5,000, no more than $1,800 (36%) should go toward debt. Review expenses and look for ways to pay down existing debts before applying.
  • The loan-to-value ratio of your home is also key. Most competitive rates require this ratio (which compares your total mortgage balance to the home’s value) to be 85% or lower. Building equity over time improves your ratio. Consider requesting an appraisal if values in your area have risen significantly.

Be sure to compare offers from multiple lenders. Check with three to five banks, credit unions, or online lenders to see who can offer the lowest rate. Look closely at the annual percentage rate rather than just the starting rate. Don’t forget about fees. 

The approval process for a HELOC can take two to six weeks. But some lenders, like Figure, can get you funded in as little as five days. Have recent pay stubs, tax returns, and documentation of your home’s title and value ready to submit. 

If approved, you can access your line of credit whenever needed for renovations, debt consolidation, or other large expenses. Taking the time to optimize your financial factors and shop around enables Tennessee homeowners to find the best HELOC rates available.


What is the lowest HELOC rate in Tennessee?

The lowest HELOC rates in Tennessee tend to match or beat the prime rate of 8.50% as of December 2023. 

These rates are usually reserved for those with excellent credit. Based on our research, Figure, Spring EQ, Bethpage FCU, Hitch, First South Financial, Tennessee State Bank, and Home Federal Bank currently offer some of the lowest HELOC rates in Tennessee. 

What HELOC has the highest rates in Tennessee?

Many HELOCs in Tennessee have a maximum interest rate of 18%. These rates tend to be reserved for borrowers with the lowest credit scores or less home equity. 

Are any lenders’ HELOCs not available in Tennessee?

For the most part, national lenders offer HELOCS in Tennessee. But there are some exceptions. For example, TD Bank is the 10th largest bank in the U.S., but it doesn’t provide HELOCS to Tennessee residents.