Best Home Equity Lenders of January 2025
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If the value of your home is higher than what you owe on it, you have equity. There are two ways to turn your equity into spendable cash: sell the home, or borrow against your equity in the form of a loan.
There are three main loan options for borrowing from your home’s equity:
Home equity loans
Home equity lines of credit (HELOCs)
Cash-out refinances
The right product for you depends on your needs.
👉 Know how much you need to borrow and prefer the stability of a fixed interest rate? A home equity loan may be your best option.
👉 Completing a series of projects and need to borrow flexibly when you need cash? A HELOC could be the answer.
👉 Want to refinance your mortgage and take out equity at the same time? Choose among NerdWallet’s top cash-out refinance lenders.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
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- Governed by NerdWallet's strict guidelines for editorial integrity.
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Home Equity Lenders of January 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | National / regional ▾ ▾ | Learn more |
|---|---|---|---|---|
580 | National | Learn more at Rocket Mortgage, LLC | ||
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 600 | National | Compare More Lenders on NerdWallet | |
 Navy Federal: NMLS#399807 Compare More Lenders on NerdWallet | N/A | National | Compare More Lenders on NerdWallet | |
 Discover Home Loans: NMLS#684042 Compare More Lenders on NerdWallet | 680 | National | Compare More Lenders on NerdWallet | |
 Better: NMLS#330511 Compare More Lenders on NerdWallet | 680 | National | Compare More Lenders on NerdWallet |
Rocket Mortgage, LLC: NMLS#3030
580
National
- Reported average time to close is 15 days faster than industry average.
- High volume of FHA and VA loans.
- Borrowers can apply via mobile app.
- Average origination fees are on the higher end, according to the latest federal data.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
PNC Bank: NMLS#446303
National
89.80%
600
- Max borrowing limit is higher than average.
- Minimum credit score requirement is lower than most competitors.
- Repayment period up to 30 years.
- Among the largest HELOC lenders by origination volume.
- Annual fee of $50.
- Borrowers in California, North Carolina and New York will pay an origination fee.
- Borrowers can access up to 100% of equity, higher than most lenders.
- Flexible term options: 5, 10, 15 or 20 years.
- No application fee, closing costs or prepayment penalty.
- Minimum loan amount of $10,000.
- Can’t customize a rate estimate on the website.
- Credit union membership is limited to those with U.S. military connections.
Discover Home Loans: NMLS#684042
680
90%
National
- Maximum borrowing limit is higher than industry standard.
- No closing costs or application fees.
- Repayment terms up to 30 years.
- Minimum loan amount is $35,000.
Better: NMLS#330511
680
90%
National
- Maximum borrowing limit is higher than industry standard.
- No closing costs or application fees.
- Home equity loans are available for second homes.
- Info about home equity loans is very limited on Better’s website.
Truist: NMLS#399803
660
89%
National
- Choice of 5, 10, 15, 20 or 30-year repayment terms for borrowers with fixed rates.
- No initial draw required.
- No origination fees or prepayment penalties.
- $50 annual fee.
- Rates are not posted online.
- Fixed-rate draws must be at least $5,000.
U.S. Bank: NMLS#402761
National
90%
660
- Online tool lets you customize sample rate by location.
- Offers a fixed-rate payment option.
- High maximum loan amount compared with other lenders.
- Charges a fee for early repayment.
- Annual fee up to $75 (waived for certain banking customers).
Pennymac: NMLS#35953
620
National
- Easy to personalize a quote and apply online.
- Average interest rates are on the low side.
- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
loanDepot: NMLS#174457
520
National
- Offers a variety of repayment terms for fixed-rate loans.
- Does a substantial amount of business in FHA lending.
- Interest rates are not available on the website.
- Origination fees are on the higher end, according to the latest federal data.
More from NerdWallet
What is home equity?
Your equity is the value of your home, minus what you owe. For example, if your house is worth $300,000 and you owe $100,000 on your mortgage, you have $200,000 in equity. This can be true even if you haven’t paid $200,000 into the home — say, if you’ve made valuable improvements or if property values have increased in your area.
If you’re planning a big home improvement project (or need to access a large amount of cash for another reason), you can pull some of this equity out in the form of a home equity loan, a home equity line of credit or a cash-out refinance. The amount you could be eligible to borrow depends on multiple factors, including how much equity you have, your credit score and your debt-to-income ratio.
» MORE: Home equity loan calculator
How to get equity out of your home without refinancing
If you don’t want to refinance your primary mortgage, you have two options for accessing equity: a home equity loan or a HELOC. Whichever you choose, if you use the money for home improvements, some of the interest you pay may be tax deductible.
A home equity loan delivers your financing as one single payment. You’ll pay it back at a fixed rate. A home equity loan may be a good fit if:
You already have an idea of how much cash you need.
You want the predictability of a fixed interest rate.
» MORE: See our picks for best home equity loan lenders.
A HELOC allows you to take out equity as you need the cash. Each withdrawal from a HELOC may have a different rate based on market conditions. A HELOC may be a good fit if:
You don’t know exactly how much cash you’ll need.
You’re doing a series of home improvement projects that will require multiple draws.
You’re able to pay a higher interest rate for future draws.
» MORE: See our picks for best HELOC lenders.
Refinancing and extracting equity at the same time
You can also tap your equity through a cash-out refinance. Rather than getting a second mortgage, a cash-out refinance replaces your current mortgage with another for more than you owe on your home, allowing you to pocket the difference. A cash-out refinance may be a good fit if:
Rates have fallen since you bought your home.
It has a lower interest rate than a HELOC or a home equity loan.
You want to make only one monthly payment.
While you’ll have to pay closing costs to take out any of these options, the closing costs for a cash-out refinance are typically higher than those for a HELOC. And as with HELOCs and home equity loans, the money you receive from a cash-out refinance isn’t taxable. The interest is only deductible if you use it for home improvements.
» MORE: See our picks for best lenders for a cash-out refinance.
Last updated on January 2, 2025
Methodology
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with 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 score among the top lenders for home equity loans, HELOCs or cash-out refinances.
All reviewed mortgage lenders that offer home equity loans were evaluated based on (1) maximum CLTV, (2) application fees, (3) closing costs, (4) whether or not an appraisal is required, (5) range of repayment terms, (6) rate transparency, (7) digital application availability and (8) customer support options. The highest scoring lenders appear on this page.
All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) HELOC loan volume, (2) maximum CLTV, (3) whether they offer a fixed-rate option, (4) annual fees, (5) origination fees, (6) transaction fees, (7) initial draw requirements, (8) length of draw and repayment terms, (9) application availability online or via mobile app, (10) range of customer support options, (11) average closing time transparency (12) interest rate transparency and (13) transparency regarding how to access funds. A recent regulatory action against a lender may affect its HELOC star rating.
All reviewed mortgage lenders that offer cash-out refinancing were evaluated based on (1) the percentage of originations dedicated to cash-out refinancing, (2) cash-out refinancing loan volume, (3) cash-out refinance interest rates, (4) cash-out refinance origination fees, (5) interest rate transparency and (6) customer experience. The highest scoring lenders appear on this page. A recent regulatory action against a lender may affect its cash-out refinance star rating.
NerdWallet's Best Home Equity Lenders of January 2025
- Rocket Mortgage, LLC: Best for cash-out refinances
- PNC Bank: Best for HELOCs
- Navy Federal: Best for home equity loans
- Discover Home Loans: Best for home equity loans
- Better: Best for home equity loans
- Truist: Best for HELOCs
- U.S. Bank: Best for HELOCs
- Pennymac: Best for cash-out refinances
- loanDepot: Best for cash-out refinances
