6 Best Home Equity Lenders of 2020

Why we like it

Pros

• PenFed pays most closing costs.

• Available for owner and non-owner occupied homes.

• Borrowers can switch from a variable to fixed interest rate on all or some of the credit line.

Cons

• Has a $99 annual fee, but that fee may be waved in certain circumstances.

Why we like it

Pros

• Home equity loan amounts start at $1,000.

• HELOCs allow two fixed-rate lock options at one time.

• Maximum LTV is 84.9% but may be lower for borrowers in certain geographical areas.

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.

Why we like it

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.

Why we like it

Pros

• Offers a wide variety of loan options, including low-down-payment mortgages and jumbo mortgages.

• Provides customizable mortgage rates on its website.

• Offers low rates and fees compared with other lenders.

Cons

• Charges a mortgage application fee.

• Requires help from a mortgage loan officer to complete the loan application online.

Why we like it

Pros

• Offers conventional and government-backed refinance mortgages.

• Customized loan recommendations based on refinance goals.

• Offers document and asset retrieval capabilities.

Cons

• If you’re a “look me in the eye” type of customer, you’re out of luck.

• Getting a customized interest rate requires a credit check, which can lower your credit score by a few points.

Why we like it

Pros

• Offers refinance mortgages with fixed and adjustable rates.

• Allows borrowers to apply entirely online.

• May give existing customers a discount on mortgage lender origination fees.

Cons

• Does not offer renovation loans.