6 Best Home Equity Loan Lenders of 2022 - NerdWallet Advertiser disclosure
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If you're interested in a home equity loan, we'll help you choose the best home equity loan lender. Taylor Getler Oct 3, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. NerdWallet has reviewed the leading home equity lenders in the nation and has found some standouts when it comes to the best home equity loans. Consider your home equity loan needs and then shop the lenders below — and if you want to consider other home equity products, read on for more about your options. NerdWallet has reviewed the leading home equity lenders in the nation and has found some standouts when it comes to the best home equity loans. Consider your home equity loan needs and then shop the lenders below — and if you want to consider other home equity products, read on for more about your options. Best Home Equity Loan Lenders
LenderNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.National / regionalMax LTVMin. credit score Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standardsLearn more Flagstar NMLS#417490Read review 5.0/5 Best for large loansNational89%680 HEL:680HELOC:680Read reviewNBKC NMLS#409631Read review 5.0/5 Best for Kansas City borrowersNational90%620 HEL:620HELOC:620Read reviewSan Diego County Credit Union NMLS#580585Read review 5.0/5 Best for California borrowersRegional N/A N/ARead review US Bank NMLS#402761Read review 4.5/5 Best for large loansNational80%620 HELOC:620HEL:620Read reviewNavy Federal NMLS#399807Read review 4.5/5 Best for variety of loan termsNational N/A N/ARead review Golden 1 Credit Union NMLS#669333Read review 4.5/5 Best for variety of loan termsRegional N/AN/A HEL:N/AHELOC:N/ARead reviewRead review Flagstar NMLS#417490
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Max LTV89% Min. credit score680 HEL:680HELOC:680 View details Read reviewView details Min. credit score 680 Why we like it Flagstar offers one of the highest loan limits among home equity loan lenders researched by NerdWallet. Pros Offers a wide range of loan types and products, including FHA, VA and USDA. Has a full suite of online conveniences. Offers customized online rate quotes with monthly payment estimates, including mortgage insurance, when applicable. Cons Home equity loans are geographically limited.Read Full ReviewRead review NBKC NMLS#409631
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Max LTV90% Min. credit score620 HEL:620HELOC:620 View details Read reviewView details Min. credit score 620 Why we like it NBKC can be a strong choice for borrowers in the Kansas City metro area. Pros Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots. Offers low rates and fees compared with other lenders, according to the latest Federal data. Displays customized rates, with fee estimates, without requiring contact information. Cons HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.Read Full ReviewRead review San Diego County Credit Union NMLS#580585
5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.Min. down payment5% SDCCU offers conventional loans for as little as 5% down. National / regionalRegional View details Read reviewView details Why we like it San Diego County Credit Union can be a strong choice for California borrowers. Pros Offers purchase, refinance and jumbo mortgages, plus loans for second homes and home equity products. Provides customized rate and fee quotes without requiring contact information. Cons SDCCU only serves the California marketRead Full ReviewRead review US Bank NMLS#402761
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Max LTV80% Min. credit score620 HELOC:620HEL:620 View details Read reviewView details Min. credit score 620 Why we like it US Bank offers convenient online banking for borrowers. Pros Offers a full line of conventional and government loan products. Provides home equity loans and lines of credit. Allows borrowers to apply and track their loan's progress online. Cons No personalized mortgage rates available online. Published mortgage rates assume an above-average credit score.Read Full ReviewRead review Navy Federal NMLS#399807
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalNational Min. down payment0% Navy Federal Credit Union offers down payments as low as 0% on loans for military families. View details Read reviewView details Why we like it Navy Federal offers flexibility to borrowers with a wide range of loan terms. Pros Offers a wide range of affordable mortgage products, including 0% down payment loans, designed for military members. Offers HELOCs and home equity loans. Offers low rates compared with most lenders, according to the latest federal data. Cons Website does not provide customized mortgage rates based on credit score or other factors before you apply. Credit union membership is limited to veterans and current military members, their families, and certain federal employees, retirees and contractors.Read Full ReviewRead review Golden 1 Credit Union NMLS#669333
4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account loan types and loan products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available HMDA data.National / regionalRegional Max LTVN/A Min. credit scoreN/A HEL:N/AHELOC:N/A View details Read reviewView details Min. credit score N/A Why we like it Golden 1 Credit Union offers flexibility to borrowers with a wide range of loan terms. Pros Offers a variety of purchase and refinance loans, including jumbo mortgages. Has a preferred real estate agent program that can save a borrower money on closing costs. Offers some flexibility on guidelines for loan qualification. Cons Does not offer VA or USDA loans. Products available only to California residents.Read Full Review Which is right for you A home equity loan a home equity line of credit or a cash-out refinance
Home equity loans, HELOCs and cash-out refinances all allow you to turn some of your home equity into cash, to use as you see fit. Your home is the collateral for all three of these loan types, so it's considered safest to use the cash in a way that will improve your financial position. That's one reason these are often used for value-adding home renovations. Here are some of the key things to know when you're comparing home equity loans, HELOCs and cash-out refinances. Home equity loan
Provides you with a one-time payment that you pay back over time at a fixed rate. You'll pay off this loan in addition to your mortgage, since a home equity loan is technically a second mortgage. Can have a shorter loan term, depending on how much you borrow and how quickly you want to repay the loan. Home equity line of credit or HELOC
Gives you a line of credit that you borrow against as you need it, rather than requiring you to figure out an exact sum beforehand (though it's still good to have an idea of the approximate total). Has an adjustable interest rate, which means that your interest rate will change over the life of the loan. Some lenders also offer a fixed-rate option. Check out NerdWallet's best HELOC lenders. Cash-out refinance
Replaces your mortgage with a new home loan that's greater than the amount already owed on your existing mortgage. You get the difference between the higher loan amount and the amount owed as a cash payment. Generally has a higher interest rate than a rate-and-term refinance, but a lower rate than home equity loans or HELOCs. Check out NerdWallet's best lenders for a cash-out refinance. » MORE: Full comparison of home equity loans, HELOCs and cash-out refinances More from NerdWallet Home equity loan calculator See average home equity loan rates Check your home's value Last updated on October 3, 2022 Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings. The lenders on this page are chosen using this methodology: NerdWallet reviewed nearly 60 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (lenders had to have 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 offer home equity loans and achieve at least an overall 4.5-star rating from NerdWallet. NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2020 HMDA data for origination volume, origination fee, rate spread and share-of-product data. To recap our selections... NerdWallet' s Best Home Equity Loan Lenders of 2022
Flagstar: Best for large loansNBKC: Best for Kansas City borrowersSan Diego County Credit Union: Best for California borrowersUS Bank: Best for large loansNavy Federal: Best for variety of loan termsGolden 1 Credit Union: Best for variety of loan terms Frequently asked questions
What is a good rate for a home equity loan? Home equity loan rates vary from day to day and from one lender to another. To make sure you're getting a good home equity loan rate, compare offers from at least three lenders. It may seem simpler to get a home equity loan from your current mortgage lender, but that might not get you the best deal.Is it worth getting a home equity loan? If you need a large amount of cash, a home equity loan will likely get you a lower interest rate than a comparable personal loan. But if you need to borrow $10,000 or less, a personal loan, or even a credit card, could do the job — and you won't be using your home as collateral.What credit score do you need to get a home equity loan? To qualify for a home equity loan, you'll need a credit score that is at least 620, though many lenders will look for a higher minimum score. You also need to have at least 20% home equity, meaning you have paid off an amount of your original mortgage that's equal to 20% or more of your home's current value. About the author
Taylor Getler
Taylor Getler is a home and mortgages writer for NerdWallet. She previously covered design trends for Branding Times, and has been quoted in such outlets as Adweek. Taylor is enthusiastic about financial literacy and helping consumers feel empowered to make smart, informed choices with their money. Email: [email protected] Read moreEmail