Best Home Equity Loans in 2024

The smart way to unlock home equity stored in your home

Choose one of the lenders below to access low rates, flexible qualifications, and award-winning customer service on your next loan. Lock in the best home equity loan rates today.
Today's 30yr refinance rate: 6.95% APR 0.32% 30 day change 0.21% 90 day change
Today's 15yr refinance rate: 6.47% APR 0.19% 30 day change 0.12% 90 day change
Today's 30yr refinance rate: 6.95% APR 0.32% 30 day change 0.21% 90 day change
Today's 15yr refinance rate: 6.47% APR 0.19% 30 day change 0.12% 90 day change

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Loan Type
Credit Score
Loan Amount
Valid as of March 29, 2024
trustpilot-star
9.4
Trustpilot Score
Based on 16692 User Reviews
10
Brand Reputation
Based on web trends
1
9.7
Our score
trustpilot-star
9.4
Trustpilot Score
Based on 16692 User Reviews
10
Brand Reputation
Based on web trends
  • Find a simple mortgage that works for you
  • Get a cash-out refi on your mortgage
  • Get real-time rate updates
  • Home Loan Experts available 24/7
  • Speedy app for customer service

Find a simple mortgage that works for you

(888)-980-5271
16,692
Reviews
VIEW RATES
16,692
Reviews
RocketMortgage.com (888)-980-5271
trustpilot-star
8.8
Trustpilot Score
Based on 11931 User Reviews
9.8
Brand Reputation
Based on web trends
2
9.3
Our score
trustpilot-star
8.8
Trustpilot Score
Based on 11931 User Reviews
9.8
Brand Reputation
Based on web trends
  • Home equity loans & refinance – cash out
  • Low rates: quick quote & approval
  • Rate lock protection, lock now before rates go up
  • Over $100 billion funded. 21 years in business

Home equity loans & refinance – cash out

(877)-406-0385
11,931
Reviews
VIEW RATES
11,931
Reviews
AmeriSave.com (877)-406-0385
trustpilot-star
8.6
Trustpilot Score
Based on 13529 User Reviews
10
Brand Reputation
Based on web trends
3
9.3
Our score
trustpilot-star
8.6
Trustpilot Score
Based on 13529 User Reviews
10
Brand Reputation
Based on web trends
  • Wide network of home equity lenders
  • Rate shop conveniently for great savings
  • Cash-out refi available
  • Free credit monitoring
  • Network of 300+ competing lenders

Wide network of home equity lenders

13,529
Reviews
VIEW RATES
13,529
Reviews
LendingTree.com
trustpilot-star
9.4
Trustpilot Score
Based on 715 User Reviews
9.4
Brand Reputation
Based on web trends
4
9.4
Our score
trustpilot-star
9.4
Trustpilot Score
Based on 715 User Reviews
9.4
Brand Reputation
Based on web trends
  • No monthly payments and no interest charges, ever.
  • $30,000 - $500,000 in equity available
  • Borrow with low FICO score & no income
  • 10-year term to sell or settle agreement

No monthly payments and no interest charges, ever.

715
Reviews
VIEW RATES
715
Reviews
Unlock.com
trustpilot-star
8.6
Trustpilot Score
Based on 388 User Reviews
9.8
Brand Reputation
Based on web trends
5
9.2
Our score
trustpilot-star
8.6
Trustpilot Score
Based on 388 User Reviews
9.8
Brand Reputation
Based on web trends
  • Provides a personalized cash-out refinance rate in only 5 minutes
  • Competitive cash-out rates, fast service
  • Get pre-approved in as few as 24 hours
  • 100% online application available

Provides a personalized cash-out refinance rate in only 5 minutes

(855)-450-1446
388
Reviews
VIEW RATES
388
Reviews
NewAmericanFunding.com (855)-450-1446
trustpilot-star
8.6
Trustpilot Score
Based on 2322 User Reviews
9.8
Brand Reputation
Based on web trends
6
9.2
Our score
trustpilot-star
8.6
Trustpilot Score
Based on 2322 User Reviews
9.8
Brand Reputation
Based on web trends
  • Largest non-bank HELOC lender in the US (Good/Excellent credit only)
  • Approval in 5 minutes. Funding in as few as 5 days
  • Flexible terms, redraw up to 100%, borrow $20K-$400K
  • Fastest way to turn home equity into cash

Largest non-bank HELOC lender in the US (Good/Excellent credit only)

2,322
Reviews
VIEW RATES
2,322
Reviews
www.figure.com
trustpilot-star
9.2
Trustpilot Score
Based on 19719 User Reviews
10
Brand Reputation
Based on web trends
7
9.6
Our score
trustpilot-star
9.2
Trustpilot Score
Based on 19719 User Reviews
10
Brand Reputation
Based on web trends
  • Unlock cash from within your home
  • Personalized recommendations
  • Powerful home equity solutions
  • Free loan calculators

Unlock cash from within your home

19,719
Reviews
GET STARTED
19,719
Reviews
QuickenLoans.com
trustpilot-star
7.8
Trustpilot Score
Based on 197 User Reviews
9.4
Brand Reputation
Based on web trends
8
8.6
Our score
trustpilot-star
7.8
Trustpilot Score
Based on 197 User Reviews
9.4
Brand Reputation
Based on web trends
  • Unlock home equity without debt, interest, or monthly payments
  • Access funds using a home equity agreement
  • Don't repay until you sell your home
  • Unlock $30,000-$500,000 in home equity

Unlock home equity without debt, interest, or monthly payments

197
Reviews
VIEW RATES
197
Reviews
Unison.com
9
  • Lender network with cash-out refinance loan options
  • Fixed-rate and adjustable rate mortgage options available
  • Great resource to learn about your loan options
  • 10, 15, and 30-year home equity loan terms

Lender network with cash-out refinance loan options

8.2
Brand Reputation
Based on web trends
10
8.2
Our score
8.2
Brand Reputation
Based on web trends
  • Lender network for borrowers looking to refinance
  • Fixed-rate and adjustable rate mortgage options available
  • Save time finding the right lender for you
  • Quick and easy online application

Lender network for borrowers looking to refinance

Need help tapping into your equity?
What are you using this loan for?
What are you using this loan for?
Based on your answers,
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1
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*This recommendation is based on our assessment; users are urged to consider individual factors before choosing a vendor.

Does a cash-out refinance better fit your needs?

Shop competitive cash-out refi rates from highly-recommended lenders
trustpilot-star
9.4
Trustpilot Score
Based on 16692 User Reviews
10
Brand Reputation
Based on web trends
1
9.7
Our score
trustpilot-star
9.4
Trustpilot Score
Based on 16692 User Reviews
10
Brand Reputation
Based on web trends
  • Find a simple mortgage that works for you
  • Get a cash-out refi on your mortgage
  • Variable-rate lines of credit
  • Speedy document and asset retrieval
  • Get real-time rate updates

Find a simple mortgage that works for you

(888)-980-5268
16,692
Reviews
VIEW RATES
16,692
Reviews
Visit Rocket Mortgage (888)-980-5268
trustpilot-star
8.6
Trustpilot Score
Based on 388 User Reviews
9.8
Brand Reputation
Based on web trends
2
9.2
Our score
trustpilot-star
8.6
Trustpilot Score
Based on 388 User Reviews
9.8
Brand Reputation
Based on web trends
  • Get a personalized cash-out refinance rate in minutes
  • A+ BBB rating with over 214,000 reviews
  • Lock in competitive rates, close quickly
  • 100% online application available
  • Over $115 billion in loans issued

Get a personalized cash-out refinance rate in minutes

(855)-450-1446
388
Reviews
VIEW RATES
388
Reviews
Visit New American Funding (855)-450-1446
trustpilot-star
9.2
Trustpilot Score
Based on 19719 User Reviews
10
Brand Reputation
Based on web trends
3
9.6
Our score
trustpilot-star
9.2
Trustpilot Score
Based on 19719 User Reviews
10
Brand Reputation
Based on web trends
  • Unlock cash from within your home
  • Personalized recommendations
  • Powerful home equity solutions
  • Free loan calculators
  • 100% online experience

Unlock cash from within your home

19,719
Reviews
GET STARTED
19,719
Reviews
Visit Quicken Loans

What Is a Home Equity Loan?

A home equity loan allows you to borrow against your home equity, which is the portion of your home that you own. These loans are sometimes called second mortgages, equity loans, or home equity installment loans. They provide you with a lump sum of money that you can spend however you want. In return, you’ll make monthly payments, typically with fixed interest rates, though some lenders may offer variable interest rates.

Your home serves as collateral to secure a home equity loan. Most lenders allow you to borrow up to 85% of your home’s value, depending on your remaining mortgage balance, home value, income, and credit.

See Home Equity Loan Options on Rocket Mortgage

How Do Home Equity Loans Work?

Applying for a home equity loan is similar to applying for a mortgage. Whether you apply online or in person, you should be prepared with the following information and documentation:

  • Your Social Security number
  • Employment history and employer information
  • Proof of income, such as tax returns
  • Most recent pay stub
  • W-2 statements from the last two years
  • Amount you pay in alimony or child support, if any
  • Current mortgage statement
  • Home appraisal information
  • Proof of homeownership
  • Home insurance declarations
  • Documentation of existing liens on your home, if any

Your combined loan to value ratio (CLTV), credit score, payment history, and income determine how much you can borrow and your available interest rate. Home equity loans typically have a set repayment term and fixed interest rate for the life of the loan, although you may occasionally find a home equity loan with a variable interest rate.

You can expect to pay origination fees and closing costs as with a mortgage. You may also be subject to late fees for delayed monthly payments or prepayment penalties if you pay off the loan before the term is over. Reviewing the loan offer carefully and asking questions can help you plan for the necessary fees.

The entire process can take about two to six weeks from the time that you apply to when you receive funds. You can usually expect online lenders to be faster than traditional banks and credit unions.

The underwriting process takes up the majority of this time as an underwriter compares your borrowing history, creditworthiness, and financial documentation to the requirements of your loan. When underwriting is complete, you’ll close the loan by meeting with your lender to sign paperwork and arrange for funds disbursement. Closing can take about a week.

See Home Equity Loan Options on AmeriSave

How to Evaluate Your Home’s Equity

You can figure out your home’s equity by subtracting the amount you owe on your mortgage from your home’s appraised value. That formula looks like this:

Current home appraisal value – mortgage balance = home equity

For example, let’s say you want to get a $50,000 home equity loan and the current market value of your home is $300,000. You have a 30-year mortgage with a remaining balance of $180,000. $300,000 minus $180,000 equals $120,000. You currently have $120,000 in home equity, 40% of your home’s total appraised value.

Lenders also review your loan-to-value (LTV) ratio and CLTV ratio. When you already have an existing mortgage, your LTV compares your mortgage balance to the appraised home value. In our example, your LTV ratio would be 60%. That equation looks like this:

(Mortgage balance / current home appraisal value) x 100 = LTV ratio percentage

Determining your CLTV ratio can help you see if you meet the 85% maximum required by most lenders. To determine CLTV, add the desired loan amount to your current mortgage balance, then divide that number by the current appraised value. Finally, multiply by 100 to turn that number into a percentage:

(Home equity loan + mortgage balance) / home appraisal value x 100= CLTV ratio

In our example, you would add $50,000 to $180,000, then divide that number by $300,000. Multiply by 100 to get a 77% CLTV ratio, which most lenders would approve.

Compare Home Equity Loans on LendingTree

When Should You Get a Home Equity Loan?

Although it’s technically possible to get a home equity loan when you first purchase a home, timing might not be ideal. Most lenders require that you have at least 20% equity in your home before approving you for a home equity loan. The more equity you own and the less you owe on your initial mortgage, the better rates and terms you can get. If you have less equity in your home but need funds now, you will likely pay a higher interest rate for a loan.

Your debt-to-income (DTI) ratio also factors into when you might choose to get a home equity loan. Most lenders require a DTI ratio of no more than 43%. You can determine your DTI ratio by dividing your total monthly debts (mortgage, auto loans, student loans, etc.) by your monthly gross income. You may need to pay off other debts or increase your income before applying for a home equity loan.

You might consider a home equity loan if you need cash but have a low credit score. Since home equity loans are secured, they usually have looser approval requirements than for personal loans and other unsecured loans. You could get a credit card in this situation, but if you plan on carrying a balance, home equity loans have lower interest rates.

Although home equity loans can be spent on anything, some investments are riskier than others. For example, using a home equity loan to purchase an extravagant car might not be worth it, since your home acts as collateral for the loan. Likewise, starting a new business with the funds presents a higher risk, so be sure to weigh the pros and cons.

Access Your Home Equity with Rocket Mortgage

Home Equity Loan vs. Home Equity Line of Credit

Home equity loans and home equity lines of credit (HELOCs) are similar, but have a few key differences. Both loans use home equity as collateral for the loan. However, home equity loans provide you with a lump sum of cash, repaid over a set term with a set interest rate. You repay the money over the lifetime of the loan. Terms generally range from 5 to 15 years.

With HELOCs, you get access to a revolving line of credit with a variable interest rate, though some lenders do offer fixed-rate options. Like a credit card, you can take what you need up to your credit limit, pay it back, and borrow more. HELOCs have a draw period, which typically lasts 5 to 10 years. The draw period is followed by a repayment period of about 10 to 20 years, during which you must repay your balance and can no longer draw money.

How to Choose the Best Home Equity Lender for You

When getting any type of loan, it’s important to compare different options. Marketplaces like LendingTree make it easy to compare multiple lenders in one place, without having to apply on multiple sites.

You should compare the interest rate, APR, and terms of each lender. Some lenders may offer prequalification offers, waived fees, or other discounts that should be considered as you deliberate.

You should also consider customer service and user interface. You don’t want to be stuck in a long-term loan with a lender that has poor customer service, so read reviews or test out their customer service yourself to ensure you’re in good hands.

A good lender will also have an easy-to-navigate user interface, like a customer dashboard or mobile app that allows you to pay your bills and track your mortgage. This will ensure a hassle-free experience throughout the lifetime of your loan.

Better Mortgage Disclaimer
¹One Day HELOC offers customers who provide required financial documentation within 4 hours of rate lock the opportunity to receive an underwriting determination (additional requirements may apply) within 24 hours of rate lock. Initial approval does not guarantee final underwriting approval. See One Day HELOC Terms and Conditions.

Assumes borrowers are eligible for the Automated Valuation Model (AVM) to calculate their home value, their loan amount is less than $400,000, all required documents are uploaded to their Better Mortgage online account within 24 hours of application, closing is scheduled for the earliest available date and time, and a notary is readily available. Funding timelines may vary and may be longer if an appraisal is required to calculate a borrower’s home value.

FAQ

Why should I get a home equity loan?

A home equity loan can provide access to a large amount of cash with a potentially low interest rate. You can use the funds for any purpose from education to home improvements to travel.

How hard is it to get a home equity loan?

To get a home equity loan, you’ll need a minimum credit score of 620 for most lenders and at least 20% in home equity. The higher your credit score and equity, the easier it is to get a home equity loan with good rates and terms.

Can I get a home equity loan with poor credit?

Yes. While most home equity loans require a credit score of at least 620, some lenders, like Hometap, accept credit scores as low as 500.

What is a good rate for a home equity loan?

A good rate can fall anywhere between 3% to 5%, and poor credit may result in less desirable rates of 9% to 10%.