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Top Home Equity Loan Companies
The best home equity loans let you take advantage of the equity you’ve accumulated in your homes without paying exorbitant interest rates and fees. While the process isn’t as taxing or stressful as applying for a first mortgage, the right home equity lender makes getting a loan much easier and less painful overall.
That said, there are so many home equity loan and home equity lines of credit (HELOC) lenders that it can be difficult to determine which one offers the best rates, terms, and the easiest application process. We’ll shed some light on the subject in this article and will help you get started down the right path.
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Trusted Company Reviews #1 Pick for 2025
- Home equity and HELOCs available
- Multiple financial products available beyond home equity
- Requires just 15% equity in your home
Why we love it 💖
Lendingtree stands on top of the competition by offering not only home equity loans and variations, but numerous other financial products through its marketplace platform as well.
Our Highest Rated Home Equity Loans Companies
- Personal loans, debt consolidation, and other financial tools available
- Lending marketplace
- Qualifying won't affect credit score
- Qualify with as little as 15% home equity
- Fixed-rate borrowing available
- Low borrowing minimums
- Maximum of 90 percent of home value for equity loans
- Loans must be at least $35,000, higher than many competing lenders
- Repayment terms of 10, 15, 20, or 30 years
- HELOCs (home equity line of credit) and cash-out refinancing are available
- A credit score of at least 680 and a debt-to-income of less than 43 percent required
- Phone or online applications are available
- No application fees
- Loans require a home appraisal as part of the application
- Online or in-app applications available
- Does not advertise mortgage rates online
- Offers home equity loans for investments or vacation homes
- Home equity loans can only reach 80 percent of a property’s value
- Minimum of $50,000 HELOC required
- No origination fees or prepayment penalties
- Borrowers can also include vacation homes and investment properties
- Payments available quickly after approval
- Better’s rates are often higher than the national average
- Entirely online applications available
What Is a Home Equity Loan?
When a person buys a home with a mortgage, the lender issues funds to cover the cost of the property. By making payments over time, the borrower gains equity in the property, which is the portion of the value beyond the remaining mortgage balance. Home equity loans let borrowers tap into that equity, providing cash for things like debt consolidation, home improvements, and other expenses. Loan amounts are generally offered based on the borrower’s creditworthiness and the home’s equity, of which most lenders only offer a percentage.
Home Equity Loan Vs HELOC
Many people use the terms home equity loan and home equity line of credit interchangeably, but they’re not the same. Home equity loans pay out a lump sum of money that requires the borrower to make monthly payments, just like a standard mortgage or car payment. The funds arrive once, and the borrower repays it based on the loan’s terms and conditions.
Home equity lines of credit, also known as HELOCs, also rely on the home’s value, but they function much more like a credit card. Borrowers are approved for a set amount and can withdraw funds until they reach the limit. The account only requires payment when there is an outstanding balance, and the borrower can repay and re-borrow funds multiple times over the draw period of the HELOC.
How to Get a Home Equity Loan
Like any other loan, applying for a home equity loan takes some planning and legwork to ensure a seamless experience. The first and most important consideration is your credit history and financial situation. It’s vital to ensure that you have no errors on your credit report and that you understand your debt and income. The application process is relatively simple, but it’s a good idea to shop around to find the best rates and terms for your situation. Finally, you should also consider other financial products that may fit your needs. Home equity loans come with minimum borrowing amounts and other restrictions that may make them less attractive to some people.
Calculating Your Home’s Equity
For a $500,000 home with a $200,000 remaining mortgage balance, the owner has $300,000 in equity. If the lender offers home equity loans up to 80 percent of the home’s value, or $400,000, the borrower could take a home equity loan of approximately $200,000. That’s the difference between their remaining mortgage balance and 80 percent of the home’s total value. Lenders have these policies to protect themselves against defaulting borrowers, as they want to ensure that they can get most of their money back if the borrower can’t repay the loan.
How to Choose the Best Home Equity Loan Lender
Ultimately, the best home equity lender is the one you feel the most comfortable working with. After that, choose the lender that offers the best rates and terms for your situation. If you feel comfortable with the terms of the loan and the lender, you have found the best one for your needs and situation. That said, some lenders offer discounts and other programs that could make them less expensive or better for a specific borrower.
| Company | Interest Rates | Loan Amount Range | Minimum Credit Score | Term Lengths |
| Lendingtree | 6.63%-35.99% | Up to $500,000 | 620 | 5 to 30 years |
| Upstart | 8.25% – 18.00%
(subject to change) |
26,000 to $250,000 | 600 | 3 year draw |
| Discover | 8.5% | $250,000 | 680 | Up to 30 years |
| Rocket | Not disclosed | Up to $500,000 | 680 | Up to 30 years |
| Better.com | 9%-15.55% | $50,000-$500,000 | 680 | 3-year draw, 20-year repayment |
Lendingtree
Best Overall
Trusted Company Reviews Rating Score for Lendingtree: 9.3
Review
Lendingtree has a convenient online-only application and can fund its loans is as little as five days. Customers can also borrow against second homes and investment properties, and HELOCs can be quite large, reaching $500,000 for top borrowers.
About
Lendingtree is an online financial product marketplace that began in 1996. As an online-only provider, customers can prequalify without affecting their credit score and receive some of the best loan and financial product offers available from over 500 partner lenders.
Features and Benefits
- Personal loans, debt consolidation, and other tools available
- Lending marketplace
- Qualifying won’t affect credit score
- Qualify with as little as 15% home equity
- Fixed-rate borrowing available
- The maximum combined loan-to-value ratio is 85%
Why We Chose
We chose Lendingtree primarily for its fast funding times and large available loan amounts. Few lenders are able to offer HELOCs of that size. Additionally, Lendingtree’s potentially low rates for well-qualified applicants are some of the lowest available. Because the platform offers such a large number of financial products, it’s hard to think of any borrowing options that aren’t available.
Lendingtree Home Equity Loan Pros and Cons
Pros
- Prequalification doesn’t affect your credit score
- Low borrowing minimum
- Wide range of rates and terms
- Other lending and services are also available
Cons
- Potentially high interest rates
- Some laons have origination fees
- Some lower consumer review scores
| Interest Rates | Loan Amount Range | Minimum Credit Score | Term Lengths |
| 6.63%-35.99% | Up to $500,000 | 620 | 5 to 30 years |
Discover Home Loans
Best for Low Fees
Trusted Company Reviews Rating Score for Discover Home Loans: 8.8
Review
Discover is usually associated with credit cards, but the company has a thriving home lending business. It offers strong interest rates that undercut many competitors, but it requires a relatively high credit score of 680 to qualify for a loan. That said, borrowers can access up to 90 percent of their home’s value with a Discover loan, making them more accessible for people who haven’t been paying on their mortgages for years.
About
Discover started offering home equity loans in 2013, but its history goes back to the mid-1980s when it launched its now well-known credit card program. Loan terms are available, ranging from 10 to 30 years, and borrowers can apply for loans of up to $300,000.
Discover Home Loans is known for its streamlined application process and low upfront fee structure. Applicants do not have to pay application fees or closing costs, and there are no appraisal requirements, making the process less stressful and costly to get started. Discover also offers competitive rates, which become even better for borrowers with strong credit histories.
Features and Benefits
- APR often below the national average
- 10- to 30-year terms available
- Minimum credit score of 680 required
- Discover does not offer home equity lines of credit
Why We Chose
We chose Discover as our best lender because of its affordability and accessibility for people not wanting to spend a ton on fees and charges upfront. The company’s 90-percent loan-to-value ratio makes it attractive for people who don’t have a ton of time in their homes, and the bank offers home equity loans in all states except Iowa and Maryland.
Discover Home Equity Loan Pros and Cons
Pros
- No application or origination fees
- Up to 90 percent loan to value
- Lower interest rates than competitors in many cases
Cons
- Larger loan amounts require higher credit scores
- No HELOC option
- $35,000 minimum loan is larger than many borrowers need
| Interest Rates | Loan Amount Range | Minimum Credit Score | Term Lengths |
| 8.5% | $250,000 | 680 | Up to 30 years |
Rocket Mortgage
Best for: Online Borrowers
Trusted Company Reviews Rating Score for Rocket Mortgage: 8.5
Review
Rocket Mortgage is one of the more flexible home equity loan providers, and it’s certainly one of the most well-known. It offers up to 90 percent of a home’s equity, and the company earns top marks for its extensive and refined app and website.
About
Rocket Mortgage evolved out of Quicken Loans a few years ago, and has become one of the most prominent lenders in the space. It was an early player in online mortgages, which shows today in its broad online presence and technology.
Features and Benefits
- Rocket Mortgage does not give rate estimates online
- Customers can use the website, app, or phone representatives for service
- The company requires a minimum 680 credit score for home equity loans
- The borrower’s credit score plays into the loan-to-value or equity ratio
Why We Chose
We chose Rocket Mortgage because it’s easily the most technologically advanced home equity lender on this list. It also offers equity loans on second properties, such as vacation homes and rentals, and borrowers do not have to pay an application fee to get started.
Rocket Home Equity Loan Pros and Cons
Pros
- Robust online services, including loan applications
- No application fees
- Rocket Mortgage offers equity loans on second properties
Cons
- Borrowers must get a home appraisal
- Rocket Mortgage does not post rate estimates online
| Interest Rates | Loan Amount Range | Minimum Credit Score | Term Lengths |
| Not disclosed | Up to $500,000 | 680 | Up to 30 years |
Better.com
Best for: Straightforward HELOCs
Trusted Company Reviews Rating Score for Better.com: 8.1
Review
Better won points for its fast application process, which takes place entirely online. Additionally, borrowers can access up to 90 percent of their equity, and there are no origination fees or prepayment penalties. That said, the company’s rates are up to one percent higher than the national average, which can make them notably more expensive for some borrowers.
About
Better has been around since 2017 and operates as a digital lender entirely online. In addition to HELOCs, the company offers mortgages and home equity loans.
Features and Benefits
- HELOCs between $50,000 and $500,000
- Borrowers can access up to 90 percent of their equity
- Loans approved in as little as 24 hours
- Funds can be withdrawn for up to three years
Why We Chose
We chose Better for its rapid application process and quick turnaround on approvals and funding. The company does not have prepayment penalties and does not charge origination fees, though its higher rates and other costs do cut into its affordability.
Better.com Pros and Cons
Pros
- No origination fees or prepayment penalties
- Super-fast online application
- Up to 90 percent of the home’s equity available
Cons
- Better’s rates are often higher than most competitors
- Short three-year HELOC draw period
| Interest Rates | Loan Amount Range | Minimum Credit Score | Term Lengths |
| 9%-15.55% | $50,000-$500,000 | 680 | 3-year draw, 20-year repayment |
Frequently Asked Questions
These are some of the most common questions surrounding the best home equity loans.
Many borrowers take on more debt than they need to, which can lead to higher interest rates and overspending on the things the lump sum is used for, such as home renovations. It’s also easy to blow through large sums of money, but the bigger issue here is that home equity loan lenders calculate loan amounts based on the home’s value, and taking unnecessary loans against that equity could lead to the loss of the property if the monthly payments aren’t made.
There are so many lenders that offer home equity loans that it’s relatively easy to shop around and find the best home equity loan rates. While it’s never possible to accurately predict the future, interest rates are lower now than they were a short time ago, so it could be a good opportunity to apply for a loan if you’re in need.
HELOC amounts are typically lower than home equity loans, and the revolving nature of the debt makes them better for smaller expenses. While they can be used for home improvements and other large projects, HELOCs do not pay out in a lump sum like home equity loans, which can complicate or slow the project.
Since home equity loans are tied to your house and can cause major headaches if they’re not paid on time, it’s best to avoid spending the funds on frivolous expenses like vacations, shopping sprees, or vehicle purchases. Home equity loans are best used on projects or for purposes that improve the home and increase its value.
Logo image sources: lendingtree.com – upstartmortgage.com – discover.com – rocketmortgage.com – better.com