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.
Best home equity loan lenders
These lenders are leaders in offering fixed-rate home equity loans backed by your home.
- Expert in lending to military borrowers, with a wide choice of mortgage services
- Operates in every U.S. state
- Fixed-rate home equity loans let members borrow as much as 100% of the property’s value
- Navy Federal mortgage review
- One of few non-bank lenders offering home equity loans
- HELOCs are not available from Loan Depot
- Plenty of opportunity to meet in person, with 180 affiliated loan stores nationwide
- LoanDepot mortgage review
Best mortgage lenders for home equity lines of credit
These lenders specialize in offering adjustable-rate HELOCs that you can draw from over time using your home as collateral.
- Offers both HELOCs and fixed-rate home equity loans
- Is an FHA lender
- Caters to first-time home buyers
- Flagstar Bank review
- Available in all 50 states
- Customers can link their HELOC to checking or savings accounts
- Customers can make HELOC withdrawals from Citi ATMs
- CitiMortgage review
Best mortgage lenders for cash-out refinancing
- Quicken’s Rocket Mortgage is the largest online mortgage lender in the U.S.
- Completely automated application process imports income and employment information, credit score, property details and other data
- Home equity loans and HELOCs are not among Rocket’s options
- Rocket Mortgage review
- Offers a range of refinancing loans, including fixed, adjustable, jumbo, FHA and VA
- Prequalify for your cash-out refi by phone, by going online or by visiting a branch
- Borrowers can choose a cash-out refinance through either a fixed-rate mortgage or an adjustable-rate mortgage
- Bank of America review
Best home equity mortgage lenders: summary
- Navy Federal: Best home equity loan lenders
- Loan Depot: Best home equity loan lenders
- Flagstar Bank: Best mortgage lenders for home equity lines of credit
- CitiMortgage: Best mortgage lenders for home equity lines of credit
- Rocket Mortgage: Best mortgage lenders for cash-out refinancing
- Bank of America: Best mortgage lenders for cash-out refinancing
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