10 Best Home Equity Loan Lenders of January 2023

Homeowners can use home equity loans to borrow money against the value of their properties. Equity is the gap between the worth of your house and the amount of your mortgage debt. Home renovation projects, consolidating high-interest debt, or using the money for other purposes are all common uses for home equity loans.

We’ll assist you in selecting the best home equity loan lenders if you’re interested in obtaining a home equity loan. Regarding the best home equity loan lenders, we’ve evaluated the best lenders in the country and identified a few standouts. Consider your needs for a home equity loan before comparing the lenders listed below.

 

The Best Home Equity Loan Lenders

1: Discover- Best for Low Fees

APR: 7.49%-13.99% APR

Loan Amount: $35,000 to $300,000

Approval Time: 1–2 weeks

Why we chose it: Discover differs from most banks in that there are no application, origination, or appraisal fees, which is why we chose it. Additionally, there is no requirement for a closing cash advance.

Pros

•  Any origination, application, appraisal fees, or mortgage taxes are due at closing.
•  C.T., MN, NC, NY, OK, and TX residents are free from early payment penalties.
• Complete the application procedure online.

Cons

• Up to $500 in prepayment penalties are imposed for 36 months following closing,
• Discounts are not disclosed.

2: Connexus Credit Union – Best Introductory Rates

APR: Starting at 7.96% APR

Loan Amount: Starting at $5,000

Approval Time: Not disclosed.

Why we chose it: Connexus provides services to 50 states through a co-op shared branch network of more than 5,000 sites nationwide, unlike some banks and credit unions concentrated on a single state or region.

Pros

• There is no annual fee.
• 15-year draw duration available.
• HELOC promotional rates begin at 4.50% for six months.

Cons

• Closing charges might range from $175 to $2,000.
• Membership in a credit union is necessary.
• Home equity loans not available in M.D., TX, HI and AK

 

3: Flagstar – Best for Large HELOCs

APR: Starting at 7.79% APR

Loan Amount: $10,000 to $500,000

Approval Time: Not disclosed.

Why we chose it: For loans between $10,000 and $500,000, terms range from 10 to 20 years.

Pros

• Line amounts of up to $1 million
• 0.50% rate discount with AutoPay
• Eligibility for properties with one to four units and modular dwellings

Cons

• There is a $75 annual cost after the first year.
• Not available in Texas.

 4: Regions Bank – Best Flexible Repayment Terms

APR: From 6.375% with AutoPay or 6.625% -14.625% 

Loan Amount: $10,000 to $250,000

Approval Time: Not disclosed.

Why we chose it: Regions Bank is of the best home equity loan lenders that offer customers who enrol for autopay. Regions Bank provides fixed-rate home equity loans with no closing charges and an APR of 6.625% or 6.375%. Loan amounts range from $10,000 to $250,000. Repayment durations are 7, 10, 15, or 20 years.

Pros

• Rates start at 6.375% APR with auto-pay
• There is a rate discount of 0.25% to 50% when you sign up for auto-pay
• No closing charges.

 Cons

• The loan’s collateral must be in a state with a Regions retail branch
• Branches only in A.L., GA, AK, FL, IL, K.Y., IN, IA, LA, MS, MO, NC, SC, TN, and TX

.

5: Truist – Best Fixed-Rate HELOC

APR: 8.95%–18.00%

Loan Amount: From $5,000

Approval Time: One business day

Why we chose it: Home equity lines of credit from Truist are available with three different repayment options: interest-only, fixed-rate repayments, and variable-rate repayments with no closing-cost alternatives.

Pros

There may be several fixed-rate repayment choices available.

• The appraisal charge is covered.
• There are flexible payback alternatives.

Cons

• Prepayment penalty for terminating a line of credit within 36 months
• $15 service fee
• $50 annual fee for residents in A.L., IN, FL, GA, NJ, KY. and OH

Read ALSO: 7 Best Banks for Land Loans in 2023

6: Figure – Best for Quick Approvals

APR: 6.10% – 14.74% (with AutoPay discount)

Loan Amount: $15,000 – $400,000

Approval Time: Approval in 5 minutes

Why we chose it: Figure is a financial technology company headquartered in New York and San Francisco, California. Through a relationship with Homebridge, it provides refinancing, home loans and home equity lines of credit.

Pros

• 5-minute approval time for 100% online applications.
• 0.25 percent rate reduction with AutoPay.
• No prepayment fees.

Cons

• Depending on the state, an origination cost of up to 4.99% of your original draw
•  A $15,000 minimum loan amount, higher than some competitors.

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7: Bank of America: Best for Borrowers with Good Credit

APR: Not disclosed

Loan Amount: $15,000–$750,000

Approval Time: Not disclosed.

Why we chose it: Bank of America provides mortgage rates that are below average and ease of applying in person or online. With a 3% down payment and no private mortgage insurance required for their Affordable Loan Solution mortgage, borrowers on a tight budget may save hundreds of dollars a month.

Pros

• Converting a variable-rate loan to a fixed-rate loan is free.
• Up to 1.50% rate discount for initial withdrawals (0.10% for every $10,000).
• 0.25% rate discount for enrolling in AutoPay using a BofA bank or savings account

Cons

• No more than three fixed-rate loans may be opened at the same time
• Maximum APR is not disclosed:

8: PNC: Best for small-amount loan

APR: Not disclosed

Loan Amount: $10,000-$1 million

Approval Time: 20 to 30 minutes

Why we chose it: PNC offers an innovative online service called Home Insight that delves deeply into home buying. It lets users calculate their monthly mortgage payments and begin house hunting with real-time rate quotes and loan products.

Pros

• A low minimum credit score is required.
• Pre-approval time is fast.
• Online and in-person services are provided.
• Many discount programs are available.
• Ample digital support for existing customers

Cons

• USDA loans are not available

9: Loan Depot: Best for Customer Experience

APR: 4.684% – 18%

Loan Amount: $35,000 -$250,00

 Approval Time: 15 minutes

Why we chose it: Loan Depot is one of the best Home Equity Loan Lenders in the U.S., with fast approval time, more than 150 branches nationwide, and a robust online presence.

Pros

• The pre-approval process for loans can take as little as 15 minutes.
• The credit standards are reasonable.
• There is no refinancing cost for existing clients of LoanDepot.

Cons

• The origination fee is high.
• Loan closings can take more than 30 days.

 

10: Third Federal Savings Loans: Best for fixed-rate or variable-rate with a long repayment period

APR: Starting at 6.49%-6.99% APR.

Loan Amount: $10,000 to $200,000.

Approval Time: Not disclosed.

Why we chose it: Third Federal Savings Loan is one of the best home equity loan lenders known for providing its customers with helpful tools, like a mobile app and home equity calculators.

Pros

• Low fees.
• Low minimum draw requirement.
• $1,000 lowest-rate guarantee.

Cons

• Limited availability.
• No interest-only payments.
• Undisclosed credit score requirements.