Navy Federal Credit Union Home Equity Loan Review 2024

Good for: Military-affiliated borrowers who want to access a lot of their equity and take advantage of a wide range of repayment options.
Taylor Getler
Last updated on March 15, 2024
Edited by
✅ Fact checked and reviewed
Johanna Arnone
Edited by
✅ Fact checked and reviewed

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Our Take


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Homeowners looking to access a lot of their equity may be drawn to Navy Federal Credit Union, which allows customers to convert up to 100% of their home equity into cash. Borrowers also have a choice of 5-, 10-, 15- or 20-year repayment terms, and they are not required to pay closing costs. However, there is a minimum loan amount of $10,000, and credit union membership is limited to veterans and members of the armed forces, as well as their families and some civilian employees of the Department of Defense.

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Navy Federal
Navy Federal: NMLS#399807

Min. credit score
Loan types and products
Purchase, Refinance, Jumbo, Fixed, Adjustable, VA, Home Equity


  • Borrowers can access up to 100% of their equity, which is more than most lenders allow.
  • Flexible repayment terms: 5, 10, 15 or 20 years.
  • No closing costs or prepayment penalties.


  • Minimum loan amount of $10,000.
  • No option for calculating a customized rate before applying.
  • Credit union membership is limited to veterans and current military members, their families, and certain federal employees, retirees and contractors.
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Full Review

Navy Federal home equity loan rates and discounts

Most home equity loan interest rates are indexed to a base rate called the prime rate. Your offered rate will include a margin the lender has added to the prime rate. Offered margins depend largely on factors like your credit score, your existing debt, your income and the amount you wish to borrow. They will vary by lender.

Current prime rate

Prime rate last week

Prime rate in the past year — low

Prime rate in the past year — high





While Navy Federal does not post margins or customizable rate options on its site, the lender does break down the lowest possible APRs based on the borrower’s chosen repayment term. On the day we checked, these rates were:

  • 7.34% for a 5-year home equity loan.

  • 7.65% for a 10-year home equity loan.

  • 7.95% for a 15-year home equity loan.

  • 8.35% for a 20-year home equity loan.

The lender’s website does not list any discount options.

Applying for a Navy Federal home equity loan

Borrowers will need to join the credit union and create an account before accessing an online application.

Phone support is available 24/7, and borrowers can also use Navy Federal’s online portal to make an appointment at a branch location. Borrowers can block out one hour of time for mortgage service assistance.

Navy Federal’s site also has a live chat feature, which is available Monday through Friday from 9 a.m. to 6 p.m. ET. When we tried it out, we were connected with a home equity specialist who was able to answer all of our questions in under five minutes.

What you should know about Navy Federal home equity loans

Navy Federal’s home equity loan stands out for its high borrowing limit, as customers can access up to 100% of their home equity (many lenders cap out at 85%). The maximum loan amount is $500,000. Unlike some competitors, Navy Federal does not charge closing costs or prepayment penalties.

According to a representative we spoke to, borrowers may wait 45 to 55 days after applying for a home equity loan before funds are available. Among lenders surveyed by NerdWallet, the average time to close on a home equity loan ranged from five to 55 days.

Borrowers (with the exception of homeowners in Texas) are also able to get a home equity loan on a second home.

Alternatives to a Navy Federal home equity loan

Borrowers who are attracted to Navy Federal’s high borrowing limit and range of repayment terms may also consider a home equity loan from Network Capital or Discover Home Loans, both of which have a maximum loan-to-value ratio of 90% and repayment options ranging from 10 to 30 years.

Home equity loans let homeowners access a lump sum by converting equity into debt. You’ll repay the loan at a fixed interest rate over an agreed period of time. Alternatives to a home equity loan include a home equity line of credit (HELOC) or a cash-out refinance. HELOCs offer greater flexibility to withdraw funds, up to the credit limit, as needed, but often have adjustable interest rates. A cash-out refinance replaces your existing mortgage with a larger loan. It will be most appealing if mortgage rates are lower than your current rate, and closing costs will apply.

Navy Federal offers both a HELOC and a cash-out refinance option.

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NerdWallet’s home equity loan star ratings are awarded by the editorial team based on the following evaluated factors: available terms, maximum combined loan-to-value ratio, closing costs and other fees, whether a prepayment penalty applies, ease of rate shopping and ease of application.

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