Best Home Equity Loan Lenders – A home equity loan, also called a second mortgage, allows homeowners to borrow money using their home equity as collateral.
People often use these loans for purposes like home improvements, repairs, and consolidating debt. Home equity loans usually offer a cost-effective option with lower interest rates compared to personal loans, credit cards, or borrowing from retirement funds.
However, it’s important to remember that your home is used as collateral, so making complete and on-time payments is essential.
So, what are the best home equity loan lenders in 2024? Read through to discover them.
Best Home Equity Lenders Of 2024
The best home equity loan lenders offer a lot of advantages, including easy application processes, low fees, high maximum loan amounts, and quick funding times.
Although you may not be eligible for a loan with all of these lenders, you can use this list as a reference to compare offers and options. They include:
TD Bank
TD Bank operates in 15 states on the Washington, D.C., and East Coasts. This bank is notable for its comprehensive rate table, which shows the actual cost of interest for specific products.
However, because of its limited locations and the requirement for in-person closing, it may not be the best for those in states without physical branches.
With TD Bank, you can use investment property as collateral and get loans on secondary residences.
PNC Bank
PNC Bank operates in more than 50 states and offers a broad range of mortgage products, including specialized loans for borrowers with low to moderate income.
They provide an innovative online experience called Home Insight, which serves as a guide to the home-buying process.
Customers can make use of this tool to determine the mortgage payment they can afford and start searching for homes with loan products and real-time quotes.
Home Insight also permits clients who have applied for a loan to complete the approval process and upload any mandatory documents.
In addition, customers can invite real estate agents to track the progress of their applications. Home Insight features a house listing search function, a home affordability analysis, and a monthly payment estimator that factors in insurance and taxes.
Navy Federal Credit Union
Navy Federal offers some of the best membership benefits, including rate discounts and fee-free lending. Borrowers can take advantage of low fixed interest rates and borrow up to 100% of their home’s equity.
However, as a credit union, Navy Federal requires membership to apply, and eligibility is limited to those with ties to the armed forces.
With this credit union, you can borrow up to 100% equity with no closing costs, no application fees, no origination fees, and a large loan amount.
LoanDepot
LoanDepot is a prominent non-bank mortgage lender in the United States of America, with more than 150 branches across the country and a strong online presence.
They provide various loan products, including conventional mortgages, government-backed loans, and refinances.
Borrowers who make use of the lender’s Mello Smartloan technology can reduce their closing time by 17 days by digitally connecting and confirming their income, assets, and debt, which minimizes paperwork.
Bank Of America
Bank of America is a large bank lender that offers mortgage and refinance loan products as well as full banking services.
With more than 5,000 branch locations in the United States of America, they provide customers with electronic signatures for documents, online applications, and online rate locks. Borrowers can also connect with a lending specialist online.
Spring EQ
Spring EQ is a lender that specializes in home equity loan products and permits you to borrow up to about 95% of the value of your home.
This is more than what most lenders tolerate. Homeowners can convert their equity to cash just in two weeks, with an average processing time of 21 days.
With Spring EQ, you will enjoy large loan amounts, more flexible DTI ratio requirements, and fast funding.
U.S. Bank
U.S. Bank provides home equity loans up to about $750,000 to $1 million for California properties. However, this loan is not available on most of the East Coast, and borrowers from states without branches are not qualified.
With U.S. Bank, you will get to enjoy a long payment period, a large maximum loan amount, and a higher autopay discount.
Third Federal
Third Federal is a bank that is renowned for its “Lowest Rate Guarantee.” It has the potential to beat the lowest home equity loan rate you find or pay you $1,000.
Third Federal also provides flexible options when it comes to home equity loans, like the choice between fixed and adjustable rates.
However, this particular product is available in just eight states, which is fairly limited. With Third Federal, you will get to enjoy the lowest rate guarantee program, make use of a second home as collateral, and have the option of a fixed or adjustable rate.
Discover
Discover’s home equity loans are available for first and second liens. They have fixed interest rates, and you can borrow from the range of $35,000 to $300,000.
Discover’s loan does not charge any origination, application, or appraisal fees. You also do not need to make an upfront cash payment at closing or pay mortgage taxes. You can select a repayment term between 10 and 30 years.
Regions Bank
Regions Bank covers full closing costs for credit lines of up to about $250,000 or even less. If your line of credit exceeds $250,000, Regions Bank will donate up to $500.
However, if a line of credit is finished within the first 24 months of the opening date, the bank will allocate these costs to the borrower. Closing costs range from $150 to $2,000.
In conclusion, home equity loans can be really helpful for maximizing the value of your home. They can help pay for big things like home improvements or education.
But note that if you don’t pay, you could lose your home. Before getting one, make sure to check and compare different lenders.
