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.
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.
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.
Summary of Best Home Equity Loan Lenders of 2021
| Lender | NerdWallet Rating | Minimum Credit Score | National / Regional | Learn More |
|---|---|---|---|---|
 Guaranteed Rate: NMLS#2611 at Guaranteed Rate | Best for cash-out refinance | 620 | National | at Guaranteed Rate |
.png) Reali Loans: NMLS#991397 at Reali Loans | Best for cash-out refinance | 620 | Regional | at Reali Loans |
 US Bank: NMLS#402761 | Best for home equity loans | 620 | National | Read review |
 Citibank: NMLS#412915 | Best for home equity loans | N/A | National | Read review |
 BB&T (Truist): NMLS#399803 | Best for home equity loans | 620 | Regional | Read review |
 Flagstar: NMLS#417490 | Best for home equity loans | 620 | National | Read review |
 Connexus: NMLS#649316 | Best for home equity loans | 640 | National | Read review |
 PNC: NMLS#446303 | Best for home equity loans and lines of credit | 620 | National | Read review |
 SunTrust (Truist): NMLS#2915 | Best for home equity line of credit | 620 | National | Read review |
 PenFed: NMLS#401822 | Best for home equity line of credit | N/A | National | Read review |
Our picks for
cash-out refinance
at Guaranteed Rate
Guaranteed Rate: NMLS#2611
Min. Credit Score
National / Regional
at Guaranteed Rate
at Reali Loans
Reali Loans: NMLS#991397
Min. Credit Score
National / Regional
at Reali Loans
Our picks for
home equity loans
US Bank: NMLS#402761
National / Regional
Max LTV
Citibank: NMLS#412915
National / Regional
Max LTV
BB&T (Truist): NMLS#399803
National / Regional
Max LTV
Flagstar: NMLS#417490
National / Regional
Max LTV
Connexus: NMLS#649316
National / Regional
Max LTV
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.
Our picks for
home equity line of credit
SunTrust (Truist): NMLS#2915
National / Regional
Max LTV
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.
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.
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.
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 from NerdWallet
Last updated on April 2, 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
- Guaranteed Rate: Best for cash-out refinance
- Reali Loans: Best for cash-out refinance
- US Bank: Best for home equity loans
- Citibank: Best for home equity loans
- BB&T (Truist): Best for home equity loans
- Flagstar: Best for home equity loans
- Connexus: Best for home equity loans
- PNC: Best for home equity loans and lines of credit
- SunTrust (Truist): Best for home equity line of credit
- PenFed: Best for home equity line of credit
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 it might not be giving you the best deal.
If you need a large amount of cash, a home equity loan will likely get you a lower interest rate than a comparable personal loan. But if you need to borrow $10,000 or less, a personal loan or even a credit card could do the job — and you won't be using your home as collateral.
To qualify for a home equity loan, you'll need a credit score that is at least 620, though many lenders will look for a higher minimum score. You also need to have at least 20% home equity, meaning you have paid off an amount of your original mortgage that's equal to 20% or more of your home's current value.
