BEST OF
6 Best Home Equity Lenders of 2021
These mortgage lenders are among the standouts in 2021 for home equity loans, lines of credit and cash-out refinancing.
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.
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. 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 home equity loans, home equity lines of credit (HELOCs) and cash-out refinancing.
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.
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. 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 home equity loans, home equity lines of credit (HELOCs) and cash-out refinancing.
Summary of Best Home Equity Lenders of 2021
| Lender | NerdWallet Rating | National / Regional | Max LTV | Learn More |
|---|---|---|---|---|
Best for home equity loans | National | 90% | Read review | |
Best for home equity loans | National | 84.9% | Read review | |
Best for home equity lines of credit | National | 89% | Read review | |
Best for home equity lines of credit | National | N/A | Read review | |
Best for cash-out refinancing | National | N/A | at Rocket Mortgage by Quicken Loans | |
Best for cash-out refinancing | National | N/A | Read review |
National / Regional
National
Max LTV
90%
Pros
- Offers a broad selection of home loan products, including low-down-payment options for first-time home buyers and home buyers of limited means.
- Offers a lender credit, based on loan amount, for purchase mortgages.
- Offers relatively low mortgage rates in comparison to other lenders.
Cons
- Lender credit isn't available for refinance mortgages.
- Doesn't offer FHA loans.
National / Regional
National
Max LTV
84.9%
Pros
- Posts current mortgage rates on its website.
- Has an online application for mortgage preapproval and a digital tool to track application progress.
- Offers several affordable loan options including FHA, VA, USDA and the PNC Community Loan.
Cons
- Can't complete a full mortgage application online.
- Doesn't offer renovation mortgages.
- In-person service is not available in every state.
National / Regional
National
Max LTV
89%
Pros
- Offers a wide range of loan types and products, including FHA, VA and USDA.
- Has a full suite of online conveniences.
- Does well with rate transparency, and monthly payment estimates add mortgage insurance, when applicable.
Cons
- Home equity lending is geographically limited.
National / Regional
National
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.
at Rocket Mortgage by Quicken Loans
at Rocket Mortgage by Quicken Loans
Min. Credit Score
620
National / Regional
National
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.
Min. Credit Score
620
National / Regional
National
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.
Last updated on January 26, 2021
Methodology
NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Home Equity Lenders of 2021
- PenFed: Best for home equity loans
- PNC: Best for home equity loans
- Flagstar: Best for home equity lines of credit
- Citibank: Best for home equity lines of credit
- Rocket Mortgage by Quicken Loans: Best for cash-out refinancing
- Bank of America: Best for cash-out refinancing
