BEST OF

Best Home Equity Loan Lenders of 2021

If you're interested in a home equity loan, we'll help you choose the best home equity loan lender. Our top picks also include options for home equity lines of credit and cash-out refinances.

NerdWalletJun 23, 2021
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NerdWallet has reviewed the leading home equity lenders in the nation and has found some standouts when it comes to the best home equity loans. We have also shared some of our top picks for home equity lines of credit and cash-out refinances, which are two other ways to tap your home equity. Consider your home equity loan needs and then shop the lenders below, confident that they're among the best.

Due to the coronavirus pandemic, getting a mortgage may be a bit of a challenge. Lenders are dealing with high loan demand and staffing issues that may slow down the process. Also, some lenders have increased their fees, adjusted their minimum required credit scores or temporarily suspended certain loan products. If you can’t pay your current home loan, refer to our mortgage assistance resource. For the latest information on how to cope with financial stress during this pandemic, see NerdWallet’s financial guide to COVID-19.

Summary of Best Home Equity Loan Lenders of 2021

Our picks for

cash-out refinance

Guaranteed Rate
Learn more

at Guaranteed Rate

Guaranteed Rate: NMLS#2611

5.0

NerdWallet rating 
Guaranteed Rate

Min. Credit Score

620

National / Regional

National
Learn more

at Guaranteed Rate

Why we like it

Good for: homeowners who are looking to refinance conventional, FHA or VA mortgages.

Pros

  • Offers the ability to securely upload and digitally sign loan documents.

  • Displays detailed sample rates for many of its refinance loan products.

Cons

  • May charge an application fee.

Read Full Review
Reali Loans
Learn more

at Reali Loans

Reali Loans: NMLS#991397

4.0

NerdWallet rating 
Reali Loans

Min. Credit Score

620

National / Regional

Regional
Learn more

at Reali Loans

Why we like it

Good for: borrowers looking for an online mortgage application experience.

Pros

  • Offers a completely online application process.

  • Posts current interest rates for purchase and refinancing.

  • Provides customized rate quotes online.

Cons

  • No FHA, VA or USDA refinance products.

  • Available only in a dozen states.

Read Full Review

Our picks for

home equity loans

US Bank
Read review

US Bank: NMLS#402761

5.0

NerdWallet rating 
US Bank

National / Regional

National

Max LTV

80%
Read review

Why we like it

U.S. Bank gets high marks for its loan offerings and online customer conveniences — and has competitive fees and mortgage rates.

Pros

  • Offers a full line of conventional and government loan products.

  • Provides home equity loans and lines of credit.

  • Allows borrowers to apply and track their loan's progress online.

Cons

  • No personalized mortgage rates available online.

  • Published mortgage rates assume an above-average credit score.

Read Full Review
BB&T (Truist)
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BB&T (Truist): NMLS#399803

4.5

NerdWallet rating 
BB&T (Truist)

National / Regional

Regional

Max LTV

80%
Read review

Why we like it

BB&T excels in online convenience and offers a good variety of loan types, but has a limited physical presence outside the Southeast.

Pros

  • Offers a variety of low-down-payment mortgages as well as construction mortgages.

  • Website lets users estimate rates online by loan and property type, amount and location.

  • Has an online mortgage application.

Cons

  • Branches limited to mostly the Southeast region.

  • Does not offer FHA loans.

Read Full Review
Flagstar
Read review

Flagstar: NMLS#417490

5.0

NerdWallet rating 
Flagstar

National / Regional

National

Max LTV

89%
Read review

Why we like it

Good for: borrowers who want a wide range of choices — not only among mortgage products, but also in the channel they prefer, whether a branch, online or on the phone.

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.

Read Full Review
Connexus
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Connexus: NMLS#649316

4.0

NerdWallet rating 
Connexus

National / Regional

National

Max LTV

N/A
Read review

Why we like it

Connexus boasts low-down-payment conventional loans and makes mortgage rate information readily accessible online, but doesn't offer government-backed mortgages.

Pros

  • Offers a range of fixed-rate and adjustable-rate mortgages in most states.

  • Displays sample rates for its entire array of loan products, and you don't need to provide personal information to get a custom rate quote.

Cons

  • Doesn't offer FHA, VA or USDA loans.

  • Lacks document upload and online loan tracking capabilities.

Read Full Review

Our pick for

home equity loans and lines of credit

Home equity lines of credit, or HELOCs, offer the convenience of drawing on your home's equity only as you need it.

PNC
Read review

PNC: NMLS#446303

4.5

NerdWallet rating 
PNC

National / Regional

National

Max LTV

84.9%
Read review

Why we like it

Good for: borrowers with low-to-moderate incomes or limited down payments. PNC offers several low-down-payment loans, including one with no mortgage insurance.

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.

Read Full Review

Our picks for

home equity line of credit

SunTrust (Truist)
Read review

SunTrust (Truist): NMLS#2915

5.0

NerdWallet rating 
SunTrust (Truist)

National / Regional

National

Max LTV

89.9%
Read review

Why we like it

Good for: first-time home buyers, doctors and other borrowers interested in low-down-payment mortgage options.

Pros

  • Offers a wide variety of loan options, including special programs for doctors, entrepreneurs and other professionals.

  • Offers a complete suite of online mortgage application tools and loan tracking.

  • Sample rates and fees are easy to find on the website.

Cons

  • Customized rates aren't available online without starting an application.

  • Branches are limited mostly to the Southeast.

Read Full Review
PenFed
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PenFed: NMLS#401822

4.5

NerdWallet rating 
PenFed

National / Regional

National

Max LTV

90%
Read review

Why we like it

PenFed Credit Union has a digital mortgage application and offers a wide selection of mortgages, including low-down-payment home loans. But it doesn't offer FHA mortgages.

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.

Read Full Review

Which is right for you: A home equity loan, a home equity line of credit or a cash-out refinance?

Home equity loans, HELOCs and cash-out refinances all allow you to turn some of your home equity into cash, to use as you see fit.

For any of the three, your home is the collateral — and inability to make payments could lead to foreclosure — so it's considered safest to use the cash in a way that will improve your financial position. That's one reason these are often used for value-adding home renovations.

Here are some of the key things to know when you're comparing home equity loans, HELOCs and cash-out refinances.

Home equity loan

  • Provides you with a one-time payment that you pay back over time at a fixed rate. You'll pay off this loan in addition to your mortgage, since a home equity loan is technically a second mortgage.

  • Can have a shorter loan term, depending on how much you borrow and how quickly you want to repay the loan.

Home equity line of credit, or heloc

  • Gives you a line of credit that you borrow against as you need it, rather than requiring you to figure out an exact sum beforehand (though it's still good to have an idea of the approximate total).

  • Has an adjustable interest rate, which means that your interest rate will change over the life of the loan.

Cash-out refinance

  • Replaces your mortgage with a new home loan that's greater than the amount already owed on your existing mortgage. You get the difference between the higher loan amount and the amount owed as a cash payment.

  • Generally has a higher interest rate than a rate-and-term refinance, but a lower rate than home equity loans or HELOCs.

» MORE: Full comparison of home equity loans, HELOCs and cash-out refinances

More from NerdWallet

Last updated on June 23, 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 Loan Lenders of 2021

Frequently asked questions