Best of
Best HELOC Lenders of July 2019
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A HELOC lets you tap your home's equity. We've selected some of the best HELOC lenders to help you find the right one.
Our picks for
home equity lines of credit
At U.S. Bank
At U.S. Bank
National / Regional
National
Max LTV
90%
Pros
- Equity borrowing available from $15,000 to $750,000 (up to $1 million for properties in California), depending on credit history, property's equity and monthly debts.
- With a variable-rate HELOC up to three fixed-rate options can be locked.
- Originates loans in all 50 states with loan officers physically present in 28 states.
- Mortgage options include a "piggyback" or 80/10/10 loan.
- Alternative credit sources can be used In some cases.
- No closing costs with a cash-out refinance.
Cons
- Limited opportunities for face-to-face banking with offices in only 28 of 50 states.
- Average score in J.D. Power 2017 consumer satisfaction survey (US Bank has 3 stars out of 5).
- Online capabilities are currently limited.
National / Regional
National
Max LTV
90%
Pros
- A wide variety of home equity options, including an interest-only HELOC.
- A 5/5 HELOC allows you to lock in a low rate for five years.
- A PenFed home equity loan allows you to tap your home's value in a lump sum.
Cons
- Membership required, but it's easier to obtain these days than in years past.
- Online technology leaves a bit to be desired for tech-savvy borrowers.
- Branch offices are in limited locations, following a major military base footprint.
- Max LTV in Texas is 80%
National / Regional
National
Max LTV
70-80%
Pros
- Discounts may be available for Citibank customers or those who elect to pay closing costs.
- Lower introductory rates may be available.
- Multiple ways to access HELOC funds.
- No application or closing cost fees.
Cons
- Early closure fee if you close HELOC account within 36 months of opening it.
- Must be a premium account holder for best rates.
- HELOCs require an initial draw of at least $25,000
- Not available in Alaska.
at Chase
at Chase
National / Regional
National
Max LTV
80%
Pros
- Get a 0.25% rate discount for having Chase personal checking or 0.5% rate discount with a Premier Platinum checking account.
- Convert all or part of the credit line's outstanding balance into a fixed rate and term.
- Discount introductory interest rate when taking an initial draw of $30,000 or more.
Cons
- Carries $50 annual fee unless you have a Chase Premier, Premier Plus or Premier Platinum checking account.
- Has a $50 origination fee.
- HELOCs not available in Alaska, Hawaii or South Carolina.
National / Regional
National
Max LTV
90%
Pros
- Offers a wide variety of purchase and refinance mortgages, home equity loans and HELOCs.
- Online planning tool helps borrowers find affordable mortgage payment amounts.
- Home equity loan amounts start at $1,000.
- HELOCs allow two fixed-rate lock options at one time.
Cons
- Automatic deductions from a PNC account required to enjoy advertised rates on some equity products.
- Offers mortgage loans nationwide, but has branches for in-person service in only about two dozen states.
National / Regional
National
Max LTV
90% (HEL)
Pros
- Flexible payment options during HELOC draw period: interest-only or interest plus principal.
- No annual fee on HELOC.
- Choose a home equity loan term of 60 to 240 months.
Cons
- Borrower pays closing costs that range from $250 to $2,000.
- Branch locations in only four states.
National / Regional
National
Max LTV
89.9%
Pros
- Discount introductory interest rate for initial advances of $25,000 or more.
- Up to five loans of at least $5,000 each can be converted to a fixed-rate, fixed-term option.
- Multiple ways to access funds: checks, online, mobile or at a branch.
- Annual fee waived for Signature Advantage or Premier Banking clients.
Cons
- Borrower pays closing costs of $100 to $2,000 if account is closed within three years.
- $65 annual fee.
- No interest-only payment option during draw and repayment periods.
National / Regional
National
Max LTV
89%
Pros
- Multiple draw methods.
- Line amounts from $10,000 to $1,000,000.
- No prepayment penalty on home equity loans.
Cons
- Below average customer satisfaction, according to J.D. Power.
- Branch locations in only about half of U.S. states.
Our picks for
cash-out refinance
A cash-out refi can be a solid alternative to home equity lines of credit, and you’ll often find it offered with a lower, fixed interest rate. Below are two options for cash-out refinance lenders.
at Rocket Mortgage
at Rocket Mortgage
Min. Credit Score
620
National / Regional
National
Pros
- Offers conventional and government-backed refinance mortgages.
- Customized loan recommendations based on refinance goals.
- Automatically fills in your application with public information.
- Helpful mortgage bankers are just a click away.
Cons
- Doesn’t consider alternative-credit info for refinances.
- No in-person customer service available.
- Must create an account to see personalized refinance rates.
Min. Credit Score
620
National / Regional
National
Pros
- Apply and be approved for a refinance entirely online.
- Suggests refinance loan products based on your financial goals.
- No personal information required for customized refinance rate quotes.
Cons
- Charges some fees, such as a lender fee which includes an application fee.
Summary of Best HELOC Lenders of July 2019
| Lender | Best For | National/Regional | Max LTV | Learn More |
|---|---|---|---|---|
US Bank At U.S. Bank | home equity lines of credit | National | 90% | At U.S. Bank |
 PenFed | home equity lines of credit | National | 90% | Read review |
 Citibank Mortgage | home equity lines of credit | National | 70-80% | Read review |
Chase at Chase | home equity lines of credit | National | 80% | at Chase |
 PNC | home equity lines of credit | National | 90% | Read review |
 Connexus | home equity lines of credit | National | 90% (HEL) | Read review |
 SunTrust | home equity lines of credit | National | 89.9% | Read review |
 Flagstar | home equity lines of credit | National | 89% | Read review |
Rocket Mortgage at Rocket Mortgage | cash-out refinance | National | N/A | at Rocket Mortgage |
 Guaranteed Rate | cash-out refinance | National | N/A | Read review |
| Lender | Best For | National/Regional | Max LTV | Learn More |
|---|---|---|---|---|
US Bank At U.S. Bank | home equity lines of credit | National | 90% | At U.S. Bank |
PenFed | home equity lines of credit | National | 90% | Read review |
Citibank Mortgage | home equity lines of credit | National | 70-80% | Read review |
Chase at Chase | home equity lines of credit | National | 80% | at Chase |
PNC | home equity lines of credit | National | 90% | Read review |
Connexus | home equity lines of credit | National | 90% (HEL) | Read review |
SunTrust | home equity lines of credit | National | 89.9% | Read review |
Flagstar | home equity lines of credit | National | 89% | Read review |
Rocket Mortgage at Rocket Mortgage | cash-out refinance | National | N/A | at Rocket Mortgage |
Guaranteed Rate | cash-out refinance | National | N/A | Read review |
Is getting a HELOC a good idea?
Many homeowners get a HELOC to pay for home repairs and renovations. The interest on the HELOC may be tax-deductible if the money is used to buy, build or substantially improve the home, according to the IRS. But defaulting on a HELOC could put your home at risk of foreclosure, so think twice before using one to pay for vacations, vehicles or other expenditures that don't build wealth.
How does a HELOC affect your credit score?
Taking out a HELOC will probably reduce your credit score temporarily once it appears on your credit report. Some credit bureaus treat HELOCs as installment loans rather than revolving lines of credit, so maxing out a HELOC might not have the same negative effect on your credit score that borrowing up to the limit on a credit card would.
What credit score do you need for a HELOC?
Lender requirements vary, but typically you'll need a credit score of 620 or higher.
How does a HELOC work?
A HELOC works like a credit card: You’re able to borrow up to a certain limit, repay some or all of what you took out, then do it again as needed. The lender uses your home’s value to set the HELOC limit. You may borrow during a draw period that lasts for several years and pay only interest on the balance. After the draw period ends, you may no longer take money out, and you pay principal plus interest.
What are the disadvantages of a HELOC?
The main disadvantage of a HELOC is that your home could be subject to foreclosure if you don't repay the loan. Also, the interest rate on a HELOC is tied to the prime rate, meaning it can go up or down. When interest rates rise, your minimum monthly payments may go up, too.
Is it better to get a home equity loan or HELOC?
The answer depends on how you plan to use the money. A HELOC lets you borrow whatever amount you need, as you need it, and you only pay interest on the outstanding balance. A home equity loan provides a lump sum that you repay in installments.
More from NerdWallet
Last updated on July 1, 2019
Methodology
To recap our selections...
NerdWallet's Best HELOC Lenders of July 2019
- US Bank: Best for home equity lines of credit
- PenFed: Best for home equity lines of credit
- Citibank Mortgage: Best for home equity lines of credit
- Chase: Best for home equity lines of credit
- PNC: Best for home equity lines of credit
- Connexus: Best for home equity lines of credit
- SunTrust: Best for home equity lines of credit
- Flagstar: Best for home equity lines of credit
- Rocket Mortgage: Best for cash-out refinance
- Guaranteed Rate: Best for cash-out refinance
