Best Home Equity Loans
Based on In-Depth Reviews

Screenshot usbank.com, October 2019

Best For Debt Consolidation

The average minimum home equity loan issued by most lenders is $35,000, which is somewhat high if you just want to consolidate $20,000 worth of personal debt. US Bank stands out by offering home equity loans that range from $15,000 to $750,000 (or up to $1 million if you’re in California). The company’s interest rates start at 4.89%, including a discount for enrolling in automatic payments, and terms up to 30 years.

US Bank doesn’t charge application fees and there are no closing costs or prepayment penalties if your debt-to-income ratio is 43% or higher, giving you the freedom to get out of debt faster. If your debt-to-income ratio is below 43%, you can remove the prepayment penalty by paying an origination fee of 1% of the loan amount.

Screenshot td.com, October 2019

Lowest Interest Rates

TD Bank has some of the lowest interest rates in the industry, with rates as low as 3.99% for a 10-year home equity loan and a 0.25% discount for TD Bank customers that enroll in autopay with their checking or savings account.

TD Bank offers loan amounts between $25,000 and $1.5 million (on selected properties) for both primary and secondary residences, as well as for investment properties, with terms between five and 30 years. Unlike other companies we reviewed, which charge an origination fee based on a percentage of the loan, TD Bank charges a $99 flat-origination fee on all loan amounts, regardless of the type of property you wish to use as collateral.

You can check out the average interest rate in your state by visiting the company’s website, where you will also be able to calculate the amount you’ll be allowed to borrow and estimate your monthly payments. TD Bank offers in-person, phone, and online applications, or you can schedule a call with a loan officer to clarify your doubts and get more information before applying.

Screenshot connexuscu.org, October 2019

Most Flexible

Connexus is a member-owned credit union, which allows it to be more flexible with its loan application requirements than other banking institutions. With Connexus, you can apply for a home equity loan for as little as $5,000, with a maximum amount of $200,000, and choose a fixed term of up to 20 years.

While most companies only allow you to borrow up to 80% of your combined loan-to-value ratio, Connexus gives you the option of borrowing up to 90% with low interest rates starting at 4.49% for a 5-year home equity loan. Each loan application is evaluated on a case-by-case basis, making it an ideal option for those who may not qualify for a home equity loan with a traditional lender or banking institution. On the downside, you must be a member of the credit union to qualify, so make sure to check out the membership eligibility requirements beforehand. Connexus services consumers nationwide and customer support is available via live chat, email, over the phone, or at the credit union’s physical branches.

Screenshot navyfederal.org, October 2019

Best if You’re in the Military

Navy Federal is a credit union that extends its services to members of the military, veterans, Department of Defense employees and their families, including spouses, siblings, parents, grandparents, children, grandchildren, and other members of their household. The credit union’s home equity loans feature terms between five and 20 years and interest rates starting at 4.99%.

Home equity loans can be made for up to $500,000, with a $10,000 minimum, and you can borrow up to 100% of your equity, which is much higher than the average 80% offered by most lenders. Navy Federal doesn’t charge origination or application fees and you may qualify for a 0.25% discount on your monthly payments if you sign up for autopay. Loyalty discounts are also available, where you can get a $250 card, just for closing your first home equity loan with the credit union. Navy Federal also offers personalized assistance from a loan officer, to ensure a positive borrowing experience from the start.

Screenshot lendingtree.com, October 2019

Best For Comparing Options

If you’re unsure of which lender to choose and wish to simplify your search, then you should check out LendingTree’s website. With LendingTree, you have to enter a few details, such as the type of property you wish to use as collateral, its address, estimated market value and mortgage balance, along with your approximate credit score range, contact information, desired loan amount and purpose, and, within minutes, you’ll be able to see and compare offers from different lenders you may qualify for.

LendingTree could also be a great option if you’re self-employed or have a less-than-stellar credit score, since it can help you find lenders that cater to your particular circumstances faster. The company’s website features information on the average costs of home equity loans and tips for a smoother borrowing experience. LendingTree doesn’t charge anything for its services and offers customer support via email and over the phone.