Best Home Equity Lenders of January 2026
Last updated on July 22, 2025
Written by
Lead Writer & Content StrategistEdited by
Head of Content, Home LoansFact Checked
Fact Checked
Written by
Lead Writer & Content StrategistEdited by
Head of Content, Home LoansFact Checked
Fact Checked
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
If the value of your home is higher than what you owe on it, you have equity. There are two ways to turn your equity into spendable cash: sell the home, or borrow against your equity in the form of a loan.
There are three main loan options for borrowing from your home’s equity:
Home equity loans
Home equity lines of credit (HELOCs)
Cash-out refinances
The right product for you depends on your needs.
👉 Know how much you need to borrow and prefer the stability of a fixed interest rate? A home equity loan may be your best option.
👉 Completing a series of projects and need to borrow flexibly when you need cash? A HELOC could be the answer.
👉 Want to refinance your mortgage and take out equity at the same time? Choose among NerdWallet’s top cash-out refinance lenders.
Why trust NerdWallet
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.
Why trust NerdWallet
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.
Best Home Equity Lenders of January 2026
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Lender | NerdWallet Rating | Min. credit score | National / regional | Learn more |
|---|---|---|---|---|
620 | National | |||
680 | National | |||
Undisclosed | National | |||
680 | National | |||
575 | National |
Rocket Mortgage, LLC: Best for cash-out refinances
Min. credit score
620
National / regional
National
- Why we like itRocket Mortgage is the Goliath of home loans in the U.S. It's the largest mortgage lender by volume, and keeps expanding its reach. Cash-out refinancing rates are competitve, but fees may be on the higher side.Pros
- Major cash-out refinance lender, by loan volume.
- Offers low cash-out refinancing rates compared with other lenders.
- Borrowers can apply via mobile app.
ConsRead full review- Average cash-out refinancing fees are on the high side.
- No HELOCs.
- No physical branches.
PNC Bank: Best for HELOCs
Max LTV
85%
Min. credit score
680
National / regional
National
- Why we like itPNC, a large HELOC lender, offers an intro rate below prime for the first six months, a wide range of repayment terms and no initial draw requirements. However, there is an annual fee of $50.Pros
- Sample HELOC rates are posted online.
- Introductory rate is below the prime rate.
- A rate discount is available to some borrowers.
ConsRead full review- Charges an annual fee.
- Slower average time to close than many lenders surveyed by NerdWallet.
Navy Federal: Best for home equity loans
- Why we like itNavy Federal’s home equity loans feature flexible terms and high borrowing limits, but you'll need a military connection to join the credit union.Pros
- Flexible term options.
- Home equity loans are available for second homes.
- Easy access to customer support.
ConsRead full review- Appraisal required.
- Does not offer a 30-year term option.
- Slower average time to close than many lenders surveyed by NerdWallet.
Better: Best for home equity loans
Max LTV
90%
Min. credit score
680
National / regional
National
- Why we like itOnline lender Better’s home equity loans offer flexible terms and personalized rate tools, but application or support options are somewhat limited.Pros
- Offers a higher than typical borrowing limit.
- Flexible term options.
- Borrowers can personalize home equity loan rates online.
ConsRead full review- Home equity loans for second homes are not clearly available.
- Limited application and customer support options.
Truist: Best for HELOCs
Max LTV
89%
Min. credit score
575
National / regional
National
- Why we like itTruist, one of the largest HELOC lenders in the country, offers an interest rate below prime for the first nine months, and borrowers can get a rate discount. However, you won’t find customized rates online.Pros
- Generous introductory rate, below the prime rate.
- Offers a higher than typical borrowing limit.
- A rate discount is available to some borrowers.
ConsRead full review- Does not post sample HELOC rates online.
- Charges an annual fee.
- Slower average time to close than many lenders surveyed by NerdWallet.
U.S. Bank: Best for HELOCs
Max LTV
80%
Min. credit score
660
National / regional
National
- Why we like itU.S. Bank's HELOC has no origination fee and no initial draw requirement. However, the lender charges a $75 annual fee (waived for those with a U.S. Bank Platinum checking account).Pros
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
ConsRead full review- Charges an annual fee.
- Slower average time to close than many lenders surveyed by NerdWallet.
- Has a lower than typical borrowing limit.
Pennymac: Best for cash-out refinances
Min. credit score
N/A
National / regional
National
- Why we like itPennymac, known for government loans, also does big business in cash-out refi. Best for borrowers looking for low rates and an efficient digital experience, though fees may be on the high side.Pros
- Offers low cash-out refinancing rates compared with other lenders.
- Major cash-out refinance lender, by loan volume.
- Rates are easy to browse online.
ConsRead full review- Average cash-out refinancing fees are on the high side.
- Home equity loans, but no HELOCs.
loanDepot: Best for cash-out refinances
Min. credit score
520
National / regional
National
- Why we like itLoanDepot, one of the country’s largest mortgage lenders, has faced negative headlines recently. Average cash-out refinancing rates are low, but fees may be on the high side. LoanDepot doesn’t post rates on its website.Pros
- Offers low cash-out refinancing rates compared with other lenders.
- Major cash-out refinance lender, by loan volume.
- Multiple options to fund home renovations, including construction loans and equity products.
ConsRead full review- Average cash-out refinancing fees are on the high side.
- No mortgage rates posted online.
- Recent headlines have damaged consumer trust.
More from NerdWallet
What is home equity?
Your equity is the value of your home, minus what you owe. For example, if your house is worth $300,000 and you owe $100,000 on your mortgage, you have $200,000 in equity. This can be true even if you haven’t paid $200,000 into the home — say, if you’ve made valuable improvements or if property values have increased in your area.
If you’re planning a big home improvement project (or need to access a large amount of cash for another reason), you can pull some of this equity out in the form of a home equity loan, a home equity line of credit or a cash-out refinance. The amount you could be eligible to borrow depends on multiple factors, including how much equity you have, your credit score and your debt-to-income ratio.
» MORE: Home equity loan calculator
How to get equity out of your home without refinancing
If you don’t want to refinance your primary mortgage, you have two options for accessing equity: a home equity loan or a HELOC. Whichever you choose, if you use the money for home improvements, some of the interest you pay may be tax deductible.
A home equity loan delivers your financing as one single payment. You’ll pay it back at a fixed rate. A home equity loan may be a good fit if:
- You already have an idea of how much cash you need.
- You want the predictability of a fixed interest rate.
» MORE: See our picks for best home equity loan lenders.
A HELOC allows you to take out equity as you need the cash. Each withdrawal from a HELOC may have a different rate based on market conditions. A HELOC may be a good fit if:
- You don’t know exactly how much cash you’ll need.
- You’re doing a series of home improvement projects that will require multiple draws.
- You’re able to pay a higher interest rate for future draws.
» MORE: See our picks for best HELOC lenders.
Refinancing and extracting equity at the same time
You can also tap your equity through a cash-out refinance. Rather than getting a second mortgage, a cash-out refinance replaces your current mortgage with another for more than you owe on your home, allowing you to pocket the difference. A cash-out refinance may be a good fit if:
- Rates have fallen since you bought your home.
- It has a lower interest rate than a HELOC or a home equity loan.
- You want to make only one monthly payment.
While you’ll have to pay closing costs to take out any of these options, the closing costs for a cash-out refinance are typically higher than those for a HELOC. And as with HELOCs and home equity loans, the money you receive from a cash-out refinance isn’t taxable. The interest is only deductible if you use it for home improvements.
» MORE: See our picks for best lenders for a cash-out refinance.
Last updated on July 22, 2025
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.
For inclusion in this roundup, lenders must score among the top lenders for home equity loans, HELOCs or cash-out refinances.
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.
All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) HELOC loan volume, (2) maximum CLTV, (3) whether they offer a fixed-rate option, (4) annual fees, (5) origination fees, (6) transaction fees, (7) initial draw requirements, (8) length of draw and repayment terms, (9) application availability online or via mobile app, (10) range of customer support options, (11) average closing time transparency (12) interest rate transparency and (13) transparency regarding how to access funds. A recent regulatory action against a lender may affect its HELOC star rating.
All reviewed mortgage lenders that offer cash-out refinancing were evaluated based on (1) the percentage of originations dedicated to cash-out refinancing, (2) cash-out refinancing loan volume, (3) cash-out refinance interest rates, (4) cash-out refinance origination fees, (5) interest rate transparency and (6) customer experience. The highest scoring lenders appear on this page. A recent regulatory action against a lender may affect its cash-out refinance star rating.
