A home equity line of credit (HELOC) can be one of the smartest ways to tap into the value of your home. Whether you’re planning renovations, consolidating high-interest debt, or simply want a financial cushion, a HELOC offers flexible borrowing power at generally lower rates than credit cards or personal loans. But while rates matter, fees can make or break the true cost of borrowing.
In 2025, some lenders are making HELOCs more attractive by cutting back on common fees like application charges, annual fees, or even closing costs. These low-fee HELOC options can save homeowners hundreds—or even thousands—over the life of the loan. For borrowers who only plan to draw small amounts at a time, avoiding unnecessary fees is especially important since it keeps the line of credit affordable.
The challenge is that not all HELOC lenders are transparent about their fees. Some advertise low rates but build in hidden costs, while others waive upfront fees but charge annual maintenance. That’s why it’s important to compare not only the interest rate but also the total cost of borrowing, including any extra charges that might apply over time.
The good news is that several well-known banks, credit unions, and online lenders now offer HELOCs with little to no fees. From national banks that eliminate application and closing costs, to credit unions that provide flexible repayment terms without annual charges, borrowers have more choices than ever in 2025.
In this guide, we’ll highlight the best low-fee HELOC lenders in 2025, explain what fees to watch for, and share tips on how to choose the right lender for your financial needs. If you’re considering a HELOC this year, knowing where to find low-cost options can help you borrow smarter and keep more money in your pocket.
Table of Contents
What is a HELOC?
A Home Equity Line of Credit is a revolving account secured by the equity in your home. Unlike a traditional home equity loan, a HELOC works more like a credit card with a variable credit limit and flexible borrowing terms. You can draw funds as needed, repay, and borrow again up to your limit.
Key features:
- Borrow against your home equity with flexible access to funds.
- Interest often only accrues on the amount you draw, not your total limit.
- Draw periods typically last 5–10 years with repayment periods up to 20 years after.
Why Focus on Low Fees in 2025?
In 2025, interest rates remain relatively high, which means upfront and ongoing fees matter more than ever. Common HELOC fees include application fees, annual service charges, appraisal costs, and draw fees. Even small differences add up over the years. Choosing a low‑fee lender could save you thousands over the life of your credit line.
Best Low‑Fee HELOC Lenders in 2025
We reviewed the leading national banks, credit unions, and online lenders based on fee structure, interest rates, flexibility, and customer reviews. Here are the best low‑fee HELOC options in 2025:
| Lender | Setup Fees | Annual Fees | APR Range | Unique Perks |
|---|---|---|---|---|
| Bank of America | $0 closing costs on lines under $1M | $0 | 8.25% – 11.25% variable | Intro rate discounts for autopay and relationship clients |
| PNC Bank | No application fee | $50 annual waived in first year | 8.5% – 10.5% | Fixed‑rate lock option on portions of your balance |
| Navy Federal Credit Union | Minimal closing costs | $0 | 7.99% – 9.49% | Higher loan‑to‑value ratios for military families |
| Figure | $0 application, e‑notary fees | $0 | 7.85% – 10.5% | 100% online approval with fast funding in days |
| U.S. Bank | No closing for qualifying borrowers | $90 annual waived for Premier clients | 8.25% – 10.25% | Flexible repayment with draw and repayment split periods |
How to Apply for a Low‑Fee HELOC
Step 1: Check Your Credit and Home Equity
Lenders evaluate your home’s equity and your creditworthiness. Ensure your credit report is accurate with all three bureaus. Most lenders require at least 620–680 credit score and 15–20% equity remaining after borrowing.
Step 2: Compare Fee Structures
Don’t just compare APRs. Investigate setup costs, annual fees, inactivity fees, and closing costs. Use our comparison table to see differences in real costs over time.
Step 3: Start the Online or Branch Application
You’ll provide personal details, property info, current debts, and income. Online‑first lenders like Figure can verify quickly using e‑notarization, while banks like Bank of America still leverage appraisals and in‑branch steps.
Step 4: Review Setup Costs
- Appraisal Fees: Some lenders absorb this, others charge $300–$600.
- Recording Fees: Typically $50–$100 local government charge.
- In‑App Purchases: Some online platforms offer value‑adds, like fixed‑rate lock bundles or credit monitoring packages at extra cost.
Step 5: Close and Access Funds
Once approved, you’ll sign documents in person or electronically. Expect access to your HELOC via checks, transfers, or linked debit cards.
Who Benefits Most from a Low‑Fee HELOC?
Choosing the best HELOC lenders with low fees in 2025 makes the most sense for:
- Home improvers: Flexibly borrow funds for renovation projects without steep origination costs.
- Debt consolidators: Eliminate high‑interest credit card balances and save with lower variable rates.
- Emergency funders: Keep a line of credit ready with minimal annual fee exposure.
Important Considerations in 2025
Before committing, remember that HELOC rates are often tied to the Federal Reserve’s prime rate. With rates expected to stabilize in 2025 but remain elevated from historic lows, variable‑rate borrowers should be prepared for fluctuations. Consider lenders offering fixed‑rate lock options.
Tax Treatment
According to the IRS Publication 936, interest on HELOCs may be deductible if used for substantial home improvements. This makes accurate record‑keeping critical if you plan to deduct interest.
Tips to Minimize Fees and Save More
- Choose lenders waiving annual fees for qualified conditions like autopay or premium accounts.
- Negotiate closing costs—many lenders rebate them with initial withdrawals.
- Avoid inactivity charges by making small scheduled draws even if you don’t require large funds.
- Bundle with your existing mortgage lender to receive loyalty discounts.
FAQs: Best HELOC Lenders Low Fees 2025
1. What is the typical interest rate on a HELOC in 2025?
Rates are generally in the 7.75%–11.5% range depending on credit score, home equity, and relationship discounts.
2. Do all HELOC lenders charge closing costs?
No. Many of the best low‑fee HELOC lenders cover closing costs for lines under a certain amount, typically $250,000–$1 million.
3. Can I lock in a fixed rate on part of my HELOC?
Yes. Lenders like PNC Bank and U.S. Bank allow you to convert portions of your variable balance into fixed‑rate sub‑loans.
4. How fast can I access funds after approval?
Online lenders like Figure can fund in under a week, while banks may take 2–4 weeks with appraisal and in‑person closing.
5. Is HELOC interest tax‑deductible in 2025?
Yes, if funds are used for substantial home improvements, per IRS guidelines. It’s not deductible for personal or educational expenses.
6. What credit score do I need for approval?
Most lenders require at least a 620–680 FICO score, but higher scores may secure lower fees and rates.
7. Are HELOCs better than personal loans?
HELOCs often have lower rates and flexible terms but involve your home as collateral. Personal loans may carry higher rates, but they are unsecured.
8. What happens if I don’t use my HELOC?
Some lenders may charge small inactivity fees, while others don’t. Always read the fine print before applying.
9. Can I refinance or transfer my HELOC in the future?
Yes. Many homeowners refinance HELOCs to lock in better rates or consolidate debt. Costs vary by lender.
10. Which lender is best for military members?
Navy Federal Credit Union remains one of the go‑to lenders, offering low fees, flexible terms, and higher maximum loan‑to‑value allowances for military families.
Conclusion
Finding the best HELOC lenders low fees 2025 means balancing competitive interest rates with upfront and long‑term costs. Bank of America, PNC, Navy Federal, Figure, and U.S. Bank all stand out for minimizing fees while providing borrower‑friendly terms.
Carefully compare structures, understand fee waivers, and plan your borrowing strategically to unlock the equity in your home without sacrificing thousands to unnecessary charges. Start your search today, secure a low‑fee HELOC, and put your home’s value to work for your financial future.
