7 Best Home Equity Loan Lenders of 2025
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A home equity loan is a second mortgage that lets you borrow from the value of your home (minus what you owe). NerdWallet’s picks for the best home equity loan products below can help you shop options that fit your needs.
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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Why trust NerdWallet
- 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.
7 Best Home Equity Loan Lenders of 2025
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Lender | NerdWallet Rating | Min. credit score | Max LTV | National / regional | Learn more |
|---|---|---|---|---|---|
680 | 90% | National | See Offers at Better | ||
680 | 90% | National | See Offers at Rate | ||
 CrossCountry Mortgage: NMLS#3029 LEARN MORE on NerdWallet | 640 | 90% | National | LEARN MORE on NerdWallet | |
 Discover Home Loans: NMLS#684042 LEARN MORE on NerdWallet | 680 | 90% | National | LEARN MORE on NerdWallet | |
 Navy Federal: NMLS#399807 LEARN MORE on NerdWallet | N/A | 100% | National | LEARN MORE on NerdWallet |
- Why we like itBetter home equity loans stand out for having high borrowing limits and a convenient digital application.Pros
- Maximum borrowing limit is higher than industry standard.
- Borrowers can apply online or via mobile app.
- Home equity loans are available for second homes.
ConsRead full review- Info about home equity loans is very limited on Better’s website.
- Why we like itRate home equity loans have higher borrowing limits than many competitors, but borrowers will have to contact the lender to get any information about the product.Pros
- Maximum borrowing limit is higher than industry standard.
- Home equity loans are available for second homes.
ConsRead full review- Borrowers must reach out for home equity loan rates.
- Home equity loan information is not available on the lender's site.
- Why we like itCrossCountry home equity loans have no appraisal or application fees, and a borrowing limit higher than the industry standard.Pros
- Maximum borrowing limit is higher than industry standard.
- No appraisal or application fees.
- Reported average closing timeline of 21 days is faster than many competitors.
ConsRead full review- Interest rates are not posted online.
- Why we like itFor homeowners looking to borrow at least $35,000, Discover home equity loans offer competitive rates and no closing costs.Pros
- Maximum borrowing limit is higher than industry standard.
- No closing costs or application fees.
- Repayment terms up to 30 years.
ConsRead full review- Minimum loan amount is $35,000.
- Why we like itNavy Federal Credit Union’s home equity loans allow service members and their families to borrow up to 100% of their equity.Pros
- 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.
ConsRead full review- 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.
- Why we like itPrimeLending home equity loans stand out for having no closing costs, as well as repayment term options ranging from 10 to 30 years.Pros
- No application fees or closing costs.
- Offers a wide range of repayment terms.
- Available for second homes.
ConsRead full review- Borrowers must reach out for interest rate quotes.
- Why we like itNetwork Capital home equity loans have one of the shortest closing times among surveyed lenders, along with no application fees or appraisal requirements.Pros
- No application fee or appraisal required.
- Reported average closing timeline of 20 days is faster than many competitors.
- Borrowers who apply via mobile app may get a faster response.
ConsRead full review- Home equity loan rates are not posted online.
How a home equity loan works
You build equity in your home in two ways: by making monthly mortgage payments and through market changes that increase your home’s value.
Once you’ve paid at least 15%-20% of your home’s value, you can borrow against that amount with a home equity loan. You’ll receive the money you borrow as a lump sum with a fixed interest rate.
Shopping around with at least three lenders can help get you the best rate. Your home equity loan rate is determined by financial qualifications, such as:
Debt-to-income ratio, or DTI. This is the percentage of your monthly income that is set aside for your other debts, like car payments and student loans. A DTI ratio no higher than 43% will help you qualify with most lenders.
Credit score. Most lenders on this list look for a minimum credit score of 680 or higher.
The amount you’re borrowing. Lenders’ lowest advertised rates usually assume that the loan is worth a minimum amount. For example, the lender might give the best rate offers to borrowers taking out at least 60% of their home equity.
MORE NERDY PERSPECTIVE 🤓
 | How can I get the best home equity loan rates? The best interest rates for home equity loans tend to go to borrowers with the highest credit scores and lowest amounts of debt. If you're planning to apply for a home equity loan, my best advice is to get your financial profile in shape first— you can save thousands in interest payments. - Taylor Getler, Lead Writer, Mortgages |
Alternatives to a home equity loan
Home equity loans aren’t your only option for accessing equity. HELOCs and cash-out refinances also allow you to turn some of your home equity into cash.
Remember: the loan is backed by your home, so it's safest to use the cash in a way that will improve your financial position. For example, your equity could pay for home renovations that add to the value of your home.
Here’s what to know when you're comparing home equity loans, HELOCs and cash-out refinances.
Is a line of credit that you borrow against as you need it. You don’t need to know exactly how much you’ll need beforehand, just an estimate.
Has an adjustable interest rate. This means that your interest rate will change over the life of the loan. Some lenders also offer a fixed-rate option.
Check out NerdWallet's best HELOC lenders.
Features of the loan | HELOC | Home equity loan |
|---|---|---|
Loan funding | You can draw funds as needed, up to a certain limit (typically a percentage of your equity). | You receive a lump sum at closing (typically a percentage of your equity). |
Terms | Begins with a draw period (typically 10 years) with interest-only minimum payments. This is followed by a repayment period (often up to 20 years) that requires you to pay back principal and interest. | Repayment periods are often up to 30 years. Minimum payments include both interest and principal. |
Rates | Variable, (though some lenders offer a fixed-rate option) | Fixed |
Borrowing limits | You can typically borrow between 80%-85% of the equity in your home. Some lenders allow for more. Use NerdWallet's HELOC calculator for personalized details. | You can typically borrow between 80%-85% of the equity in your home. Some lenders allow for more. Use NerdWallet’s home equity loan calculator for personalized details. |
Lenders |
Replaces your mortgage with a larger new loan.
You get the difference between the new higher loan amount and the amount owed as a cash payment.
Interest rates are generally higher than a standard refinance, but lower than home equity loans or HELOCs.
Check out NerdWallet's best lenders for a cash-out refinance.
Fact-checked as of June 2, 2025
Last updated on June 2, 2025
Frequently asked questions
Home equity loan rates vary from day to day and from one lender to another. To make sure you're getting a good home equity loan rate, compare offers from at least three lenders. It may seem simpler to get a home equity loan from your current mortgage lender, but that might not get you the best deal.
Home equity loan rates are influenced by a base rate called the prime rate. Lenders will add a margin to the prime rate based on your borrower qualifications. Your qualifications include your credit score, debts and income.
You'll need a credit score that is at least 680 to qualify for a home equity loan with most lenders on this list. A higher score will help you qualify with more lenders.
You may also need to have at least 20% home equity. This means the remaining balance on your original mortgage is no more than 80% of your home's current value.
Methodology
The star ratings on this page reflect each lender's performance in NerdWallet’s home equity loans category. For inclusion in this roundup, lenders must offer home equity loans and achieve a star rating of 4.5 or above in the home equity loan rubric from NerdWallet. We scored the category and chose lenders for this page using the following methodology:
NerdWallet reviewed more than 40 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.
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) range of repayment terms, (6) rate transparency, (7) digital application availability and (8) customer support options. 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.
NerdWallet's Best Home Equity Loan Lenders of 2025
- Better: Best for no closing costs
- Rate: Best for high borrowing limit
- CrossCountry Mortgage: Best for high borrowing limit
- Discover Home Loans: Best for high borrowing limit
- Navy Federal: Best for military borrowers
- PrimeLending: Best for no closing costs
- Network Capital: Best for fast closing
