Best of
Best Home Equity Loan Lenders of 2019
NerdWalletApril 26, 2019
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If you're interested in a home equity loan, we'll help you choose the best home equity loan lender. Our top picks of 2019 have an efficient application process, explain loan options clearly and tailor their services to your needs.
Our picks for
home equity loans
At U.S. Bank
At U.S. Bank
National / Regional
National
Max LTV
90%
Ideal for borrowers who want low fees. No closing costs and annual fee is waived for HELOC borrowers with an eligible checking account
Pros
- Equity borrowing available from $15,000 to $750,000 (up to $1 million for properties in California), depending on credit history, property's equity and monthly debts.
- With a variable-rate HELOC up to three fixed-rate options can be locked.
- Originates loans in all 50 states with loan officers physically present in 28 states.
- Mortgage options include a "piggyback" or 80/10/10 loan.
- Alternative credit sources can be used In some cases.
- No closing costs with a cash-out refinance.
Cons
- Limited opportunities for face-to-face banking with offices in only 28 of 50 states.
- Average score in J.D. Power 2017 consumer satisfaction survey (US Bank has 3 stars out of 5).
- Online capabilities are currently limited.
National / Regional
National
Max LTV
90%
Ideal for customers seeking more than plain-vanilla services. PenFed offers a traditional home equity loan as well as interest-only HELOCs and lines with rate adjustments every five years.
Pros
- A wide variety of home equity options, including an interest-only HELOC.
- A 5/5 HELOC allows you to lock in a low rate for five years.
- A PenFed home equity loan allows you to tap your home's value in a lump sum.
Cons
- Membership required, but it's easier to obtain these days than in years past.
- Online technology leaves a bit to be desired for tech-savvy borrowers.
- Branch offices are in limited locations, following a major military base footprint.
- Max LTV in Texas is 80%
National / Regional
National
Max LTV
70-80%
Ideal for those who prefer an online experience. Rate discounts available if you sign up for Citibank Auto Deduct and link your HELOC to a premier Citi banking account.
Pros
- Discounts may be available for Citibank customers or those who elect to pay closing costs.
- Lower introductory rates may be available.
- Multiple ways to access HELOC funds.
- No application or closing cost fees.
Cons
- Early closure fee if you close HELOC account within 36 months of opening it.
- Must be a premium account holder for best rates.
- HELOCs require an initial draw of at least $25,000
- Not available in Alaska.
Navy Federal
4.5
NerdWallet ratingNational / Regional
National
Max LTV
100% (military)
Ideal for military families. Navy Federal offers multiple home equity loan and line of credit options and will pay “most closing costs” on new equity loan applications.
Pros
- Home equity loans available with 5, 10, 15 and 20-year terms.
- Rate discount for members who set up automatic payments.
- Borrow up to 100% of the property value for HELs.
- Borrow up to 95% of the property value for HELOCs.
- Closing cost credits available.
Cons
- Membership reserved for those in the armed forces, the Department of Defense, veterans and their families.
- Some home equity loan products not available in Texas.
National / Regional
Regional
Max LTV
80%
Ideal for borrowers who want flexibility. Offers two payment options and the ability to convert all or part of the HELOC balance into a fixed-rate option.
Pros
- Up to three loans of at least $5,000 each can be converted to a fixed-rate option.
- Discount introductory interest rate when taking an initial draw of $15,000 or more.
- Flexible payment options during draw period: interest only or 1.5% of outstanding balance.
Cons
- Discount introductory rate expires after one year.
- You may have to pay closing costs if you pay off the credit line within 36 months of origination.
at loanDepot
4.5
NerdWallet ratingat loanDepot
National / Regional
National
Max LTV
90%
Ideal for borrowers that want the convenience of an online experience. LoanDepot is one of the few non-bank lenders to offer a home equity product.
Pros
- Most of the process is handled by phone, but LoanDepot also has 180 affiliated retail locations nationwide.
- Well-rated for low customer complaint volume.
- Online portal allows application document management and e-signature.
Cons
- Technology has lagged but upgrades are underway.
- Does not offer home equity lines of credit.
National / Regional
National
Max LTV
89%
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.
National / Regional
National
Max LTV
90% (HEL)
Ideal for Connexus members who want the flexibility of a HELOC that lets them choose among two payment options. Connexus also has a complete line of home equity loan products.
Pros
- Flexible payment options during HELOC draw period: interest-only or interest plus principal.
- No annual fee on HELOC.
- Choose a home equity loan term of 60 to 240 months.
Cons
- Borrower pays closing costs that range from $250 to $2,000.
- Branch locations in only four states.
Our picks for
home equity line of credit
Home equity lines of credit, or HELOCs, offer the convenience of drawing on your home's equity only as you need it.
National / Regional
National
Max LTV
90%
Ideal for equity borrowers looking for flexibility on loan terms. PNC HELOCs have locked fixed-rate terms of 5 to 30 years.
Pros
- Offers a wide variety of purchase and refinance mortgages, home equity loans and HELOCs.
- Online planning tool helps borrowers find affordable mortgage payment amounts.
- Home equity loan amounts start at $1,000.
- HELOCs allow two fixed-rate lock options at one time.
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.
National / Regional
National
Max LTV
89.9%
Ideal for homeowners who want flexibility. SunTrust offers a variable-rate HELOC where borrowers can convert all or part of the HELOC balance into a fixed-rate option.
Pros
- Discount introductory interest rate for initial advances of $25,000 or more.
- Up to five loans of at least $5,000 each can be converted to a fixed-rate, fixed-term option.
- Multiple ways to access funds: checks, online, mobile or at a branch.
- Annual fee waived for Signature Advantage or Premier Banking clients.
Cons
- Borrower pays closing costs of $100 to $2,000 if account is closed within three years.
- $65 annual fee.
- No interest-only payment option during draw and repayment periods.
Our picks for
cash-out refinance lenders
A cash-out refi can be a solid alternative to home equity lines of credit, and you’ll often find it offered with a lower, fixed interest rate.
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at Reali Loans
at Reali Loans
Min. Credit Score
620
National / Regional
Regional
Ideal for refinance customers in the states it serves. Reali Loans doesn’t charge upfront origination or broker fees on refinance loans, which close in around 36 days.
Pros
- No upfront origination or broker fees.
- A shorter, more transparent refinance process.
- Online platform lets you track your refinance every step of the way.
Cons
- No FHA, VA or USDA refinance products.
- Account required to see personalized refinance rates.
Min. Credit Score
620
National / Regional
National
Ideal for homeowners who are looking to refinance into conventional, FHA or VA mortgages. Guaranteed Rate works with almost anyone with a good credit score and stable income.
Pros
- Apply and be approved for a refinance entirely online.
- Suggests refinance loan products based on your financial goals.
- No personal information required for customized refinance rate quotes.
Cons
- Charges some fees, such as a lender fee which includes an application fee.
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Last updated on April 26, 2019
Methodology
NerdWallet's selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. 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 2019
- US Bank: Best for home equity loans
- PenFed: Best for home equity loans
- Citibank Mortgage: Best for home equity loans
- : Best for home equity loans
- BB&T: Best for home equity loans
- : Best for home equity loans
- Flagstar: Best for home equity loans
- Connexus: Best for home equity loans
- PNC: Best for home equity line of credit
- SunTrust: Best for home equity line of credit
- Reali Loans: Best for cash-out refinance lenders
- Guaranteed Rate: Best for cash-out refinance lenders
