Best Home Equity Loan Lenders

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With home prices recently at all-time highs, more homeowners are considering accessing their home equity. Whether it's to finance home improvements, consolidate debt, pay for college or do something else, a home equity loan can be a good option for a relatively low-interest-rate loan. 

Before submitting your application, compare the best home equity loan lenders, understand the pros and cons of this type of loan and learn about alternative financing options.

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Compare our top 3 picks for home equity lenders


Choose what information you want to see across each brand. At least one option must be selected.

All information accurate as of time of publication.

More details about our top picks

The best home equity loan lenders give you the option to borrow an amount that puts your combined LTV ratio at 80% or more, work with borrowers with a variety of credit scores and have quick closing times, along with repayment terms of up to 30 years.

Our choice for low starting APR
Minimum credit score
Closing costs
2% - 5%
Repayment terms
360 months

LendingTree is a financial marketplace where borrowers can receive quotes from multiple lenders by submitting a single application. You can get quotes for home equity loans, mortgages, student loans and more. 

It's our choice for a low starting annual percentage rate (APR) because you can easily find the lender with the lowest rates. To get a personalized quote, simply complete a quick application on its website.

  • Receive multiple quotes from lenders through a single application
  • Easily compare quotes in one location
  • Transparent pricing with rates, fees and other details
  • Not an actual lender
  • Possible spam or too many calls after application

Borrowers like the ability to save time by filling out just one application in order to receive multiple offers. They are generally happy with the lenders they meet through the service. A reviewer from Little Rock, Arkansas, said: “I filled out a mortgage inquiry on LendingTree and received phone calls almost immediately from lenders about my inquiry. The process was easy and put me in contact with the right lender based on my information.”

However, many of the online complaints suggest that borrowers can quickly become overwhelmed by the number of calls and emails they receive. One reviewer from Youngstown, Ohio, complained that his phone "was hammered with calls in five minutes as soon as I hit submit."

Our choice for large loan amounts
Minimum credit score
Closing costs
2% - 5%
Repayment terms
360 months

Northpointe Bank is a full-service bank based in Michigan offering personal and business deposit accounts, as well as home loans and insurance products. It has loan officers throughout the country to meet borrower needs. It is our choice for large loan amounts because homeowners can get up to a 96% combined LTV between their mortgage and home equity loan (maximum loan amount is $3 million).

Starting APRs are competitive, and closing costs are generally between 2% and 5%. The time to close the loan is around 15 days, and loans are available in all 50 U.S. states.

To apply for a home equity loan, use its website to search for an advisor or submit details for pre-qualification.

  • LTV ratio of up to 96%
  • Rate discounts available
  • Repayment terms from five to 30 years
  • Higher credit score requirement
  • Rate and fee information not listed on website
  • Cannot complete an application online — can only submit basic loan request information

There are no reviews of Northpointe Bank from ConsumerAffairs readers.

Our choice for quick closing times

Rocket Mortgage

Minimum credit score
Closing costs
3% to 6%
Repayment terms
95 - 360 months

Rocket Mortgage is our choice for quick closing times on home equity loans, with the company stating that it takes approximately one week to close. The closing times on Rocket Mortgage loans are expedited through a streamlined online process in which necessary documents can be obtained directly from your bank and investment accounts. This feature saves time and frustration.

Closing costs range from 3% to 6%. The maximum LTV ratio is 80%, and the maximum loan amount is $2.5 million. There is also a $1,200 mortgage processing fee. Loans are available to borrowers in all 50 states.

Rocket Mortgage offers mortgages, personal loans, auto loans, financing for solar installations and more. Homeowners can apply for a home equity loan directly from its website.

  • Link your bank and investment accounts
  • Online to-do list keeps borrowers up to date on process
  • High maximum loan amount
  • Requires submitting an application and a soft credit pull to view rates
  • No branches for in-person services

ConsumerAffairs reviewers have mostly favorable opinions of Rocket Mortgage and its service. Customers compliment how easy and quick the loan process is. They also appreciate being able to upload documents and sync their accounts to handle all of the document requests. A ConsumerAffairs reviewer from Massachusetts said, "Rocket took care of me and made sure I was up to speed with everything."

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What is a home equity loan?

A home equity loan is a secondary mortgage product that taps into your home's equity. This product is ideal for homeowners whose home values have appreciated but who don't want to refinance their existing mortgage to pull cash out of their homes.

Home equity loan funds are disbursed in a lump sum. For the duration of the loan, you'll make monthly payments according to a predetermined repayment schedule. In most cases, a home equity loan has a fixed interest rate.

How does a home equity loan work?

Home equity loans, which are second mortgages, give homeowners access to their home equity, which is the difference between the home's value and the mortgage balance. For example, if your home is worth $300,000 and you owe $220,000, you have $80,000 of equity in your home.

Depending on the lender, you may be able to access some or all of your home equity with a home equity loan. Each lender has a maximum LTV ratio that defines how much a borrower may receive. If a lender has a 90% combined LTV cap, the combined balance of their primary mortgage and home equity loan cannot exceed 90% of the home's value. For a home worth $300,000, the combined maximum is $270,000.

A home equity loan and home equity line of credit (HELOC) both help a homeowner access home equity. However, they operate very differently. Here are some of the most common differences.
  • Lump sum versus line of credit: While a home equity loan provides a one-time lump sum of cash, a HELOC provides a defined credit limit. A homeowner can borrow and repay their HELOC numerous times throughout the draw period (typically five to 10 years).
  • Monthly payment amount: A home equity loan has a fixed payment amount that is a combination of principal and interest. HELOCs have interest-only payments during the draw period. Once the repayment period starts, you make principal and interest payments (often over 20 years).
  • Interest rate: Most home equity loans lock in a fixed interest rate. HELOCs usually have a variable interest rate that can go up or down over time. In both cases, the borrower's credit profile and chosen lender can affect the rate.
  • Interest charges: With a home equity loan, borrowers start accruing interest on the full balance immediately, whether they're using the money or not. With a HELOC, you only pay interest on the money you draw from your credit limit. If you have a zero balance, there are no interest charges.
  • Maximum LTV ratio: Some lenders have different maximum LTV ratios for home equity loans versus HELOCs. This difference could affect how much of your equity you can access.

Home equity loan requirements

To get approved for a home equity loan, you must meet certain requirements.

  • Credit score: Lenders may require that borrowers have a minimum credit score to qualify for a home equity loan.
  • Ability to repay: Lenders review income and debt obligations to determine if you can reasonably add the loan payment to your monthly expenses. The lower your debt-to-income (DTI) ratio is, the higher your chances of approval.
  • Combined LTV ratio: The combined balance of your primary mortgage and your home equity loan cannot exceed a certain percentage of your home's value. Most lenders allow a max combined LTV ratio of 80% to 90%.

Additionally, your lender may charge fees for your loan. Some lenders may waive these fees, so keep that in mind when you're comparing loan options. Some of the most common fees that lenders charge include the following:

  • Application fee
  • Origination fee
  • Credit report fee
  • Home appraisal fee
  • Document fee
  • Title search

Some lenders offer discounts on your interest rate if you set up automatic monthly payments. Additionally, lenders may offer relationship-based pricing to lower your interest rate or fees.

How to get a home equity loan

Compare the best home equity loan lenders to find loan options with the most attractive rates and terms. Once you've found your lender, apply for your loan in person, over the phone or online. Application details vary by lender, but in general, lenders request your personal information, property address and details, how much you want to borrow and your desired repayment term.

Next, the loan officer will request documentation to support your application. These documents may include your most recent paycheck stubs, tax returns, property tax bills, insurance policy, and (if applicable) homeowners association statements.

Depending on your home's value, your equity and the loan amount, the lender may require an appraisal, which is performed by an independent appraiser and determines your home's value based on its features and recent sales of comparable homes in your local area. Homeowners can get an early estimate of their home's value through websites or apps like Zillow and Redfin or by speaking with a local real estate agent.

Once the lender completes its underwriting process, it will make a decision on your application. If approved, you'll receive a lump-sum distribution to your bank account or in a cashier's check. You'll start receiving monthly statements with loan details, including your minimum monthly payment and due date.

Alternatives to home equity loans

While a home equity loan is a good choice for many homeowners, it isn't the best fit for everyone. If a homeowner wants to use their equity, they can also take out a HELOC, a cash-out refinance loan or a reverse mortgage (if they’re older). Plus, there are other options available that don’t use your home as collateral.

  • HELOC. A home equity line of credit is a line of credit that homeowners can use repeatedly. You'll receive a maximum credit limit based on your home's value, the maximum LTV ratio, your loan request and other factors. You can withdraw funds up to your credit limit and as you pay down the balance, you can make additional withdrawals — similar to using a credit card. Monthly payments for HELOCs are interest-only during the draw period, which is often five to 10 years.
  • Cash-out refinance. Instead of adding a second mortgage, many borrowers refinance their existing mortgage and pull cash out. While this increases the balance you owe on your primary mortgage, you may be able to lower your interest rate, saving you money in the long run. Depending on the loan amount and your income, you can also adjust the term of the loan to meet your needs.
  • Reverse mortgage. A reverse mortgage is a loan product for older homeowners who want to withdraw cash from their home but don't want a monthly payment. To qualify for a reverse mortgage, homeowners typically have to be at least 62 years old and have significant equity in their homes. While there are no monthly payments, interest continues to accrue, and the lender must be repaid once the homeowner moves out of the home or dies.
  • 0% APR credit card offers. For a smaller loan amount, a credit card with a 0% introductory APR may be a good choice. It is an unsecured line of credit, so your home is not at risk. And some of the best 0% APR credit cards offer no-interest financing for almost two years. However, if you do not pay off the balance before the introductory period expires, the unpaid balance reverts to the standard interest rate, which is typically much higher than a mortgage rate.


What is equity in a home?

The equity you have in your home is the difference between the home's value and the mortgage balance you owe.

How do you get a home equity loan?

Apply for a home equity loan through a bank, credit union or other mortgage lender. In most cases, you can apply online, over the phone or by walking into a branch.

What can I use a home equity loan for?

There are few limits on what you can use a home equity loan for. Many homeowners use home equity loans to make home repairs or improvements, consolidate high-interest debt, pay for college, buy a second home or invest in stocks or rental properties.

How does a home equity loan affect your credit score?

When you apply for a home equity loan, your credit score may be impacted in several ways. The credit inquiry and new account may lower your score temporarily, but your score may improve with on-time payments and your credit mix of accounts.

Is a home equity loan worth it?

A home equity loan can be a worthwhile choice if you have enough equity in your home and can afford to make your payments. Keep in mind that your home is at risk if you default on the loan.


To make our choices for the top home equity loan lenders, we collected 13 individual data points from 15 mortgage lenders, including over 8,000 customer reviews and overall ratings from ConsumerAffairs readers submitted between 2020 and 2022. We then used this data to examine the factors that have the most impact on borrowers.

  • Minimum credit score: We considered this for all lenders, but most required a 620 minimum score. However, there are several lenders that will work with borrowers who have less-than-stellar credit.
  • LTV ratio: We gave higher consideration to lenders that allow a higher LTV ratio (most common is 80%).
  • APR: We looked for lenders that have starting APRs below 10%. However, market conditions fluctuate rapidly, so we placed less emphasis on this factor when making our choices.
  • Repayment terms: We examined payment term ranges and noted which lenders offer longer repayment terms of 360 months.
  • Time to funding: We reviewed how quickly borrowers could receive their funds and gave greater consideration to lenders with funding times of less than 30 days.
  • Closing costs and other fees: We considered lenders that have closing costs ranging from 2% to 5%, available rate discounts and low origination fees.

All of our top picks offer comparable starting APRs, work with borrowers who have fair credit, allow an 80% LTV ratio and have funding times of less than eight weeks, along with long repayment terms. They also have other features, such as online applications, nationwide availability and high maximum loan amounts.

Because customer feedback is a critical indicator when evaluating companies, it was an important factor as we selected our top picks. However, for those companies on our list with no ratings from ConsumerAffairs reviewers, there were other variables that made them stand out as good options for home equity loans, and those factored into our decisions.

Not sure how to choose?

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    Compare Top Home Equity Loan Reviews

    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
    1. Federal Trade Commission, “Home Equity Loans and Home Equity Lines of Credit.” Accessed Aug. 31, 2022.
    2. Consumer Financial Protection Bureau, “What is a home equity loan?” Accessed Aug. 31, 2022.
    3. Consumer Financial Protection Bureau, “What is a second mortgage or junior lien?” Accessed Aug. 31, 2022.
    4. Consumer Financial Protection Bureau, “What is a piggyback second mortgage?” Accessed Aug. 31, 2022.

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