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Accurate as of:
June 15, 2024

Best Home Equity Lenders of 2023

We found 10 lenders that fit you the most

Accurate as of:

June 15, 2024

Best Home Equity Loans of 2023

Now is the best time to take cash out

Need cash for a large purchase? A home equity loan gets the funds you need. Pay for college, fix your roof; afford it with the best providers around.

Are you eligible for a better rate?

Credit Score
Loan Amount
Closing Soon?

39,385 users

picked a lender via MoneyExperts this week

Find a simple mortgage that works for you

9.3

4.6/5
TrustPilot Score
Base on
Users Reviews
3.5
Click Trend
Base on the past 7 days
5.0
Product and Features
Base on the past 7 days
Editorial Reviews
3.4

Learn how we score →

9.3

4.6/5

MoneyExperts score

Rocket Mortgage

Find a simple mortgage that works for you

Compare rates from a network of lenders

8.9

4.5/5
TrustPilot Score
Base on
Users Reviews
4.5
Click Trend
Base on the past 7 days
3.8
Product and Features
Base on the past 7 days
Editorial Reviews
4.2

Learn how we score →

8.9

4.5/5

MoneyExperts score

LendingTree

Compare rates from a network of lenders

America's largest online mortgage lender

9.5

4.7/5
TrustPilot Score
Base on
Users Reviews
4.6
Click Trend
Base on the past 7 days
4.0
Product and Features
Base on the past 7 days
Editorial Reviews
4.8

Learn how we score →

9.5

4.7/5

MoneyExperts score

Quicken Loans

America's largest online mortgage lender

Get a customized rate quote in 3 minutes

9.0

4.5/5
TrustPilot Score
Base on
Users Reviews
4.3
Click Trend
Base on the past 7 days
3.6
Product and Features
Base on the past 7 days
Editorial Reviews
4.8

Learn how we score →

9.0

4.5/5

MoneyExperts score

AmeriSave Mortgage

Get a customized rate quote in 3 minutes

View Refi Rate Guide Rates

NMLS #3175

Competitive rates from multiple lenders

7.5

3.8/5
TrustPilot Score
Base on
0
Users Reviews
Click Trend
Base on the past 7 days
2.9
Product and Features
Base on the past 7 days
Editorial Reviews
3.8

Learn how we score →

7.5

3.8/5

MoneyExperts score

Refi Rate Guide

Competitive rates from multiple lenders

Marketplace for top US mortgage lenders

6.8

3.4/5
TrustPilot Score
Base on
0
Users Reviews
Click Trend
Base on the past 7 days
2.7
Product and Features
Base on the past 7 days
Editorial Reviews
3.2

Learn how we score →

6.8

3.4/5

MoneyExperts score

AmeriValue

Marketplace for top US mortgage lenders

MoneyExperts Total Score

Our product scores consist of a combination of the following 3 components:

Trustpilot is a trusted third-party consumer review website open to anyone looking to share a business review. The MoneyExperts Total Score will consist of the brand’s score on TrustPilot. If a brand does not have a TrustPilot score, the MoneyExperts Total Score will be based solely on the Click Trend Score and Products & Services Score (read below).

MoneyExperts measures user engagement based on the number of clicks each listed brand received in the past 7 days. The number of clicks to each brand will be measured against other brands listed in the same query. Therefore, the higher the share of clicks a brand receives in any specific query, the higher the Click Trend Score. MoneyExperts accepts advertising compensation from companies, which impacts their (and/or their products’) position, and in some cases, may also affect their Click Trend Score.

MoneyExperts editorial team researches and reviews financial products based on factors such as: range of products and services offered, ease-of-use, online accessibility, customer service, special awards, and more. Each brand is then given a score based on the offerings in each parameter. The specific parameters which we use to evaluate the score of each product can be found on its review page, which is updated every 3 months. If the editorial team cannot locate information relevant to a brand’s Products & Services Score, it will not be included in its calculation.

Editorial Reviews

PNC Bank

Read Review

Must Reads

With a HELOC, you only pay interest on the cash you take out

Explore HELOC lenders

NMLS #3030

9.8

5/5

MoneyExperts score

Quicken Loans

Get a line of credit loan with America's #1 mortgage lender

View Lending Tree Rates

NMLS #1136

9.8

5/5

MoneyExperts score

LendingTree

Compare heloc interest rates from a network of lenders

NMLS #3030

8.2

4/5

MoneyExperts score

Rocket Mortgage

Find a simple mortgage that works for you

Is a cash-out refinance right for you?

Compare cash-out refi lenders:
 
View AmeriSave Rates

NMLS #1168

9.8

5/5

MoneyExperts score

AmeriSave Mortgage

Get a customized rate quote in 3 minutes

NMLS #3030

9.6

5/5

MoneyExperts score

Quicken Loans

America's largest online mortgage lender

NMLS #3030

8.2

4/5

MoneyExperts score

Rocket Mortgage

Find a simple mortgage that works for you

Best Ways to Tap Home Equity

June 15, 2024

This comparison table aims to highlight some main distinctions between 3 of the most popular ways to  into your home equity:

Feature
Home equity loan
HELOC
Cash-out refinance
Variable rate
Fixed rate
Lump sum?
Withdraw cash as needed
Replace mortgage
2nd Lien
Minimum is collateral*
610
680
620
House is collateral
Cash can be used for
Anything
Anything
Anything

*Minimum qualifying credit scores can vary between lenders. Other criteria that factor into home equity loan eligibility include, but are not limited to; LTV (loan-to-value) ratio, debt-to-income ratio, and the amount of equity that you have in your home. 

What is a home equity loan?

A home equity loan allows you to borrow money against the equity in your home. Home equity is the value of the home less the amount or any mortgage debt outstanding. With a home equity loan you receive a lump sum payment and then repay the loan over a set period of time at a fixed interest rate. A home equity loan is typically a loan for a fixed amount. These loans generally have a fixed rate of interest and are paid over a fixed term, just like your original mortgage. 

Home Equity Loan VS HELOC

A home equity loan differs from a home equity line of credit or HELOC. A HELOC is a line of credit against the equity in your home that you tap as needed. Repayment terms can vary and in some cases there can be a balloon payment due at the end of the loan term. The interest rate might also be variable.

The current tax rules based on the tax reform passed at the end of 2017 no longer allow the interest paid on home equity loans or HELOCs to be deducted for tax purposes unless the money is specifically used for home improvements or related items as specified by the IRS.

 

Top Home Equity FAQs


1. What is home equity, and why do people want to tap into it?

2. How can I tap into the home equity that I have?

3. Is home equity a retirement resource?

4. How do I choose the right home equity product and lender for me?

 

How to choose the best home equity lender

Finding the best lender for a home equity loan will depend upon your unique situation and needs. 

  • Do you have poor credit or blemishes on your financial record?
  • Certain lenders tend to be better for different loan purposes.
  • Are you looking for a home equity loan or a HELOC? Some lenders will tend to be better for one or the other. 
  • The amount you need to borrow will also be a factor as some lenders may be a better fit for larger amounts than others. 

Choosing the right lender for our situation will require some homework on your part to determine what loan features are important to you and what type of borrower you are.

Popular Reasons Homeowners Take Home Equity Loans in 2023

You might need a home equity loan to refinance a home improvement, to pay down other higher cost debt, to cover major unexpected medical bills, to pay the costs of college for your children or other major expenditures. 

A home equity loan may be a less expensive option than an unsecured personal loan. This is due to the added security having your home as collateral offers to lenders. The secured nature of the loan may offer an opportunity for borrowers with lower credit scores. 

On the other hand, it is important for borrowers to understand the fact that they are using the equity in their home as collateral for this loan. If they run into financial difficulties that prevent them from making the required payments they may be putting their home at risk. They should also look at the useful life of what they are using the money for versus the time horizon over which they will need to make payments on the home equity loan to fully evaluate the economics of using this type of loan.

Home equity loans after COVID-19

Just as with other types of mortgages, many lenders have tightened their lending requirements for borrowers looking for a home equity loan in light of the economic decline resulting from the COVID-19 pandemic. This may include requiring a higher credit score and perhaps a stronger financial situation than in past years. 

The  Consumer Financial Protection Bureau has recently waived some of the requirements when applying for mortgages, including home equity loans. One requirement that has been waived is the three day right to rescind the loan. This was designed to get money into the borrower’s hands more quickly during the COVID-19 situation. While this can be helpful, it’s important to be sure that you understand all loan terms and conditions before moving ahead. 

As far as HELOCs, there have been a number of lenders who have suspended activity with these lines or who have tightened their requirements in the wake of the financial fallout from the pandemic. 

Is now the right time to tap into my home equity?

Some factors that might be enticing to borrowers include low interest rates and perhaps the need to access emergency cash due to some sort of economic hardship. Whether or not now is the right time for a home equity loan will depend upon the individual circumstances of each borrower. 

Factors to consider include the stability of the borrower’s employment situation, likely trend of home values in their area and their need for the money. 

This site is a free online resource that strives to offer helpful content and comparison features to our visitors. We accept advertising compensation from companies that appear on the site, which impacts the location and order in which brands (and/or their products) are presented, and also impacts the score that is assigned to it. Company listings on this page DO NOT imply endorsement. We do not feature all providers on the market. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

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MoneyExperts Total Score

Our product scores consist of a combination of the following 3 components:

Trustpilot is a trusted third-party consumer review website open to anyone looking to share a business review. The MoneyExperts Total Score will consist of the brand’s score on TrustPilot. If a brand does not have a TrustPilot score, the MoneyExperts Total Score will be based solely on the Click Trend Score and Products & Services Score (read below).

MoneyExperts measures user engagement based on the number of clicks each listed brand received in the past 7 days. The number of clicks to each brand will be measured against other brands listed in the same query. Therefore, the higher the share of clicks a brand receives in any specific query, the higher the Click Trend Score. MoneyExperts accepts advertising compensation from companies, which impacts their (and/or their products’) position, and in some cases, may also affect their Click Trend Score.

MoneyExperts editorial team researches and reviews financial products based on factors such as: range of products and services offered, ease-of-use, online accessibility, customer service, special awards, and more. Each brand is then given a score based on the offerings in each parameter. The specific parameters which we use to evaluate the score of each product can be found on its review page, which is updated every 3 months. If the editorial team cannot locate information relevant to a brand’s Products & Services Score, it will not be included in its calculation.

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