Best Home Equity Lenders of December 2024
These mortgage lenders are among the standouts in 2024 for home equity loans and lines of credit and cash-out refinancing.
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If you have equity in your home — its market value is higher than what you owe on your mortgage — you can tap it for home improvements or other financial needs. You build equity over time by paying down your home loan, and rising home prices can also make your house worth more. Typically, you’ll need to have at least 80% equity in your home to qualify for equity loan products such as home equity loans, home equity lines of credit (HELOCs) or a cash-out refinance. This means that your remaining mortgage balance must be equal to or less than 80% of the value of the home.
Home equity borrowing has an advantage: You get a lower interest rate than with a personal loan because your borrowing is backed by your home. However, you could also risk losing your home to foreclosure if you can’t make your payments. Use your home’s equity with care — many financial pros suggest using home equity only for things that increase your home’s value.
NerdWallet reviews and rates mortgage lenders to find the best for:
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Home Equity Lenders of December 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Max LTV ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
|---|---|---|---|---|
 Navy Federal: NMLS#399807 LEARN MORE on NerdWallet | 100% | N/A | LEARN MORE on NerdWallet | |
 Network Capital: NMLS#11712 LEARN MORE on NerdWallet | 85% | 660 | LEARN MORE on NerdWallet | |
 Pennymac: NMLS#35953 LEARN MORE on NerdWallet | 85% | 680 | LEARN MORE on NerdWallet | |
85% | 640 | Learn more at Rate | ||
 PNC: NMLS#446303 LEARN MORE on NerdWallet | 89.80% | 600 | LEARN MORE on NerdWallet |
- Borrowers can access up to 100% of equity, higher than most lenders.
- Flexible term options: 5, 10, 15 or 20 years.
- No application fee, closing costs or prepayment penalty.
- Minimum loan amount of $10,000.
- Can’t customize a rate estimate on the website.
- Credit union membership is limited to those with U.S. military connections.
- Borrowers can access up to 85% of home equity.
- Offers a variety of loan terms.
- No appraisal required.
- Sample rates for purchase mortgages, but not home equity loans, available online.
- Repayment terms range from 10 to 30 years.
- No penalty for early repayment.
- Borrowers must pay a $500 application fee and closing costs.
- Home equity loan rates are not posted online.
- Home equity loans aren’t available for second homes.
- CLTV borrowing limit over 80%.
- The initial balance and any additional draws have a fixed interest rate.
- Offers paths for rate discounts.
- No information about annual fees.
- Full amount (minus origination fee) must be drawn at closing.
PNC: NMLS#446303
National
89.80%
600
- Max borrowing limit is higher than average.
- Minimum credit score requirement is lower than most competitors.
- Repayment period up to 30 years.
- Among the largest HELOC lenders by origination volume.
- Annual fee of $50.
- Borrowers in California, North Carolina and New York will pay an origination fee.
Truist: NMLS#399803
660
89%
National
- Choice of 5, 10, 15, 20 or 30-year repayment terms for borrowers with fixed rates.
- No initial draw required.
- No origination fees or prepayment penalties.
- $50 annual fee.
- Rates are not posted online.
- Fixed-rate draws must be at least $5,000.
Alliant: NMLS#197185
N/A
National
- Sample interest rates and fees are available on the lender's website.
- Membership is contingent on belonging to a partner organization or living in an eligible Chicago-area community. Borrowers do not have to become members until closing.
San Diego County Credit Union: NMLS#580585
Regional
620
- Community-based credit union with local ties.
- Provides customized rate and fee quotes without requiring contact information.
- No FHA, VA or USDA mortgages.
- Loans are available only in California.
Andrews Federal Credit Union: NMLS#410421
N/A
National
- Offers a $1,500 closing cost credit for refinances.
- Provides extra support for military borrowers, including branches near bases in Germany, Belgium and the Netherlands.
- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
More from NerdWallet
What is equity in a home?
Your equity is the value of your home, minus what you owe. For example, if your house is worth $300,000 and you owe $100,000 on your mortgage, you have $200,000 in equity. This can be true even if you haven’t paid $200,000 into the home — say, if you’ve made valuable improvements or if property values have increased in your area.
If you’re planning a big home improvement project (or need to access a large amount of cash for another reason), you can pull some of this equity out in the form of a home equity loan, a home equity line of credit or a cash-out refinance. The amount you could be eligible to borrow depends on multiple factors, including how much equity you have, your credit score and your debt-to-income ratio.
» MORE: Home equity loan calculator
How to get equity out of your home without refinancing
If you don’t want to refinance your primary mortgage, you have two options for accessing equity: a home equity loan or a HELOC. Whichever you choose, if you use the money for home improvements, some of the interest you pay may be tax deductible.
A home equity loan delivers your financing as one single payment. You’ll pay it back at a fixed rate. A home equity loan may be a good fit if:
You already have an idea of how much cash you need.
You want the predictability of a fixed interest rate.
» MORE: See our picks for best home equity loan lenders.
A HELOC allows you to take out equity as you need the cash. Each withdrawal from a HELOC may have a different rate based on market conditions. A HELOC may be a good fit if:
You don’t know exactly how much cash you’ll need.
You’re doing a series of home improvement projects that will require multiple draws.
You’re able to pay a higher interest rate for future draws.
» MORE: See our picks for best HELOC lenders.
Refinancing and extracting equity at the same time
You can also tap your equity through a cash-out refinance. Rather than getting a second mortgage, a cash-out refinance replaces your current mortgage with another for more than you owe on your home, allowing you to pocket the difference. A cash-out refinance may be a good fit if:
Rates have fallen since you bought your home.
It has a lower interest rate than a HELOC or a home equity loan.
You want to make only one monthly payment.
While you’ll have to pay closing costs to take out any of these options, the closing costs for a cash-out refinance are typically higher than those for a HELOC. And as with HELOCs and home equity loans, the money you receive from a cash-out refinance isn’t taxable. The interest is only deductible if you use it for home improvements.
» MORE: See our picks for best lenders for a cash-out refinance.
Last updated on November 4, 2024
Methodology
The star ratings on this page reflect each lender's HELOC, home equity loan or cash-out refinance star rating.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must score among the top lenders for HELOCs, home equity loans or cash-out refinances.
All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) maximum CLTV, (2) whether they offer a fixed-rate option, (3) annual fees, (4) origination fees, (5) transaction fees, (6) termination fees, (7) inactivity fees (8) initial draw requirements, (9) prepayment penalties, (10) rate discounts, (11) ease of application, (12) interest rate transparency, (13) fee transparency, (14) maximum CLTV transparency, (15) maximum APR transparency, (16) draw and repayment period transparency and (17) transparency on how borrowers access their funds. The highest scoring lenders appear on this page.
All reviewed mortgage lenders that offer home equity loans were evaluated based on (1) maximum CLTV, (2) application fees, (3) closing costs, (4) whether or not an appraisal is required, (5) ease of application, (6) prepayment penalties, (7) repayment term options and (8) rate transparency. The highest scoring lenders appear on this page.
All reviewed mortgage lenders that offer cash-out refinancing were evaluated based on (1) cash-out refinance loan volume, (2) cash-out refinance average interest rates, (3) cash-out refinance origination fees, (4) their rate transparency and (5) the ease of their online application. The highest scoring lenders appear on this page.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Home Equity Lenders of December 2024
- Navy Federal: Best for home equity loans
- Network Capital: Best for home equity loans
- Pennymac: Best for home equity loans
- Rate: Best for HELOCs
- PNC: Best for HELOCs
- Truist: Best for HELOCs
- Alliant: Best for cash-out refinances
- San Diego County Credit Union: Best for cash-out refinances
- Andrews Federal Credit Union: Best for cash-out refinances
