6 Best Home Equity Lenders of 2020

These mortgage lenders are among the standouts in 2020 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, home equity lines of credit (HELOCs) and cash-out refinancing.

Summary of Best Home Equity Lenders of 2020

Lender	NerdWallet Rating	National / Regional	Max LTV	Learn More
PenFed: NMLS#401822 Read review	4.5 /5 Best for home equity loans	National	90%	Read review
PNC: NMLS#446303 Read review	4.0 /5 Best for home equity loans	National	84.9%	Read review
Flagstar: NMLS#417490 Read review	4.5 /5 Best for home equity lines of credit	National	89%	Read review
Citibank: NMLS#412915 Read review	5.0 /5 Best for home equity lines of credit	National	N/A	Read review
Rocket Mortgage: NMLS#3030 Learn more at Rocket Mortgage	4.5 /5 Best for cash-out refinancing	National	N/A	Learn more at Rocket Mortgage
Bank of America: NMLS#399802 Read review	5.0 /5 Best for cash-out refinancing	National	N/A	Read review

Read review

PenFed: NMLS#401822

4.5

NerdWallet rating

National / Regional

National

Max LTV

90%

Read review

Why we like it

Good for borrowers looking for a HELOC with flexible features and the low rates of a member-owned credit union.

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.

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PNC: NMLS#446303

4.0

NerdWallet rating

National / Regional

National

Max LTV

84.9%

Read review

Why we like it

Ideal for equity borrowers looking for flexibility on loan terms. PNC HELOCs have locked fixed-rate terms of 5 to 30 years.

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.

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Flagstar: NMLS#417490

4.5

NerdWallet rating

National / Regional

National

Max LTV

89%

Read review

Why we like it

Ideal for current Flagstar customers. Flagstar offers rate discounts for existing customers with high credit scores who withdraw at least $25,000 at closing.

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.

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Citibank: NMLS#412915

5.0

NerdWallet rating

National / Regional

National

Min. Down Payment

Read review

Why we like it

Good for: Borrowers wanting to compare mortgage rates online for a variety of loan options.

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.

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Learn more

at Rocket Mortgage

Rocket Mortgage: NMLS#3030

4.5

NerdWallet rating

Min. Credit Score

620

National / Regional

National

Learn more

at Rocket Mortgage

Why we like it

Ideal for refi borrowers with little time. Rocket Mortgage brings smartphone app convenience to the refinance process. And online income and asset verification speeds the process.

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.

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Bank of America: NMLS#399802

5.0

NerdWallet rating

Min. Credit Score

620

National / Regional

National

Read review

Why we like it

Ideal for borrowers who like options. Bank of America offers multiple refinance loans, including FHA, VA and cash-out.

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.

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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 2020

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: Best for cash-out refinancing

Bank of America: Best for cash-out refinancing