Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
Unlocking the equity in your home can be a powerful financial move—especially when you find a HELOC (Home Equity Line of Credit) lender offering zero closing costs on high-limit lines. For homeowners seeking HELOCs above $250,000, avoiding thousands in upfront fees can translate into significant savings. This guide explores the best lenders offering this feature, compares their offerings, and helps you understand the fine print.
Why Choose a HELOC With Zero Closing Costs?
Traditional HELOCs often come with upfront costs that include origination fees, appraisal fees, and legal charges—typically ranging from $500 to $5,000 or more. When you’re borrowing over $250K, zero closing cost offers become even more valuable.
Benefits include:
- More funds available for your goals (home improvement, debt consolidation, investments)
- Lower break-even point on your borrowing
- Faster closing times with streamlined lender programs
Top HELOC Lenders With Zero Closing Costs Over $250K
1. PenFed Credit Union
- Minimum Line: $25,000
- Zero Closing Costs: Yes, for lines up to $500,000
- Rates: Competitive variable rates starting around 8.00% APR
- Best for: High credit score borrowers with strong home equity
- Perk: No annual or application fees
2. Bank of America
- Zero Closing Costs: Yes, typically for lines above $250K
- Special Features:
- Rate discounts for autopay from a BofA account
- Introductory rate offers
- Rate discounts for autopay from a BofA account
- Drawback: Annual fee may apply after the first year
3. TD Bank
- Zero Closing Costs: Yes, when keeping the HELOC open for 36+ months
- Lines Available: Up to $500,000
- Best for: East Coast borrowers seeking in-person service
- Other Notes: Variable and fixed-rate options available
4. Third Federal
- Zero Closing Costs: Yes, with conditions
- Unique Feature: Fixed-rate lock options on portions of your HELOC
- Ideal For: Borrowers wanting both flexibility and predictability
5. U.S. Bank
- Zero Closing Costs: Often available for lines above $250,000
- Credit Requirements: 680+ FICO score preferred
- Bonus: High loan limits and robust online application process
What to Watch Out For
While “zero closing costs” sounds appealing, always check for:
- Early termination fees: Some lenders charge if the HELOC is closed within 24–36 months.
- Minimum draw requirements: You may be required to use a certain portion of the line immediately.
- Rate increases: Introductory rates may increase significantly after a few months.
How to Qualify for the Best HELOC Offers
Lenders offering high-limit, zero-cost HELOCs typically expect:
- Excellent credit scores (usually 720+)
- Stable income and low debt-to-income ratio
- Substantial home equity (often 80% loan-to-value or better)
Internal Resources You Might Find Helpful
- Home Equity Loan vs HELOC: What’s Right for You?
- What Credit Score Do You Need for a HELOC?
- How to Use a HELOC for Debt Consolidation
Ready to Tap Into Your Equity?
Compare the best HELOC lenders tailored to your financial situation. Get matched with top HELOC offers now.
FAQ: Best HELOCs with Zero Closing Costs
What counts as “zero closing costs”?
Lenders typically waive fees such as application, origination, appraisal, and title charges. However, you may still pay recording fees or early closure penalties.
Do I need to keep the HELOC open for a certain period?
Yes, most lenders require you to keep the HELOC open for 2–3 years to avoid paying back waived fees.
Can I lock in a fixed rate on a HELOC?
Yes, some lenders allow you to convert part of your HELOC to a fixed-rate loan, which can help during rising rate environments.
Don’t Miss Out on Zero Cost HELOC Offers
Whether you’re remodeling, investing, or managing debt, getting a large HELOC with no upfront fees is a strategic move. Start comparing your best-fit lenders today.
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Final Thoughts
Getting a HELOC above $250,000 without closing costs can save you thousands—especially when paired with a low interest rate and borrower-friendly terms. Carefully compare offers, look for early closure conditions, and make sure the lender’s benefits align with your financial goals.
Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
