Best Home Equity Loan Rates of June 2024

We chose these lenders based on interest rates, fees, loan terms and customer service. Keep reading for a breakdown of each choice’s pros, cons and standout offerings.

• Navy Federal: Best credit union loan
• Bethpage: Best HELOC conversion loan
• U.S. Bank: Best for large loans
• Rocket Mortgage: Best for customer satisfaction
• Spring EQ: Best for maximum equity
• Discover: Best for borrowers with little home equity
• TD Bank: Best for rate transparency
• Third Federal: Best for good credit
• Connexus: Best for good credit
• America First Credit Union: Best for maximum equity

Navy Federal Credit Union Home Equity Loan

Best Credit Union Loan

4.9

Max LTV 100% Minimum Credit Score 650 Average Closing Speed 45 to 55 Days

Why We Like It

Navy Federal Credit Union is one of the only lenders on our list that offers both home equity loans and home equity lines of credit – though not everyone can become a member and apply. Its loans have no closing costs and a high loan-to-value (LTV) ratio — you can borrow up to 100% of your home’s value for home equity loans and 95% for HELOCs. However, you do need to become a member to qualify – and membership is only open to military servicemembers and their families.

This makes Navy Federal is a good choice for military members and their families who are looking to use their home’s equity to finance expenses like home renovations or consolidate high-interest debt.

Pros & Cons

Pros Little to no fees Competitive interest rates, often below the national average Navy Federal services the loan for its full duration. Has some of the highest LTV ratios in the industry 24/7 support available Cons You or an immediate family member must be affiliated with the military to join. Longer closing time compared to online lenders Maximum loan limit is lower than most other lenders on this list.

Why Navy Federal Stands Out

The absence of application and origination fees saves borrowers a lot of money upfront if they choose Navy Federal. Plus, because it’s a credit union, Navy Federal emphasizes personal guidance throughout the loan application and closing process. This adds a level of convenience and support not always found with traditional mortgage lenders.

Bethpage Federal Credit Union

BEST HELOC CONVERSION LOAN

4.7

Max LTV 80% Minimum Credit Score Not Disclosed Average Closing Speed 34 Days

Why We Like It

Bethpage Federal Credit Union is a good home equity loan lender for fixed-rate options. As a member-owned credit union, it strives to provide better rates and lower fees than traditional banks. Its HELOCs have no closing costs or origination fees, and lines up to $500,000 come with fixed rates for the first 12 months.

To establish membership, you’ll need to open a Bethpage savings account with a minimum $5 deposit. Then, you can receive your loan funds.

Pros & Cons

Pros Competitive rates and flexible terms No appraisal fee, application fee or closing costs  Fixed-rate options available Cons Membership required to get a loan Longer closing time compared to online lenders Must repay the closing costs that Bethpage covers for you if you close your loan within 36 months of opening

Why Bethpage Stands Out

Bethpage Federal Credit Union stands out for its fixed-rate options for both home equity loans and HELOCs, which can provide borrowers with more certainty about their monthly payments.

Plus, Bethpage Federal Credit Union’s home equity loans have no closing costs, which can save borrowers money over the life of the loan.

U.S. Bank

BEST FOR LARGE LOANS

4.6

Max LTV 80% Minimum Credit Score 660 Average Closing Speed Not Disclosed

Why We Like It

U.S. Bank offers competitive home equity loan rates for current customers, making it a solid option if you’re willing to switch banks. It provides both home equity loans and HELOCs with terms that cater to various financial needs.

To get a good rate, you’ll need to maintain a credit score of 660 or higher and an LTV ratio of 80% or 85% or lower. U.S. Bank also offers an attractive 0.5% interest rate discount when you autopay your loan installments from a U.S. Bank checking or savings account.

Pros & Cons

Pros Competitive interest rates High maximum loan limits Can get a rate discount for autopay Can lock in variable HELOC rates up to three times No closing costs Cons Annual fee may apply after first year unless you’re a U.S. Bank Platinum Checking customer. Early closure fee of 1% of original line or $500 (whichever is less) applies if you pay off your loan within 30 months of opening. Longer closing time compared to online lenders

Why U.S. Bank Stands Out

U.S. Bank offers flexible loan amounts and customizable repayment terms. Not only do its loan amounts go up to $750,000 or more, but you can get a 0.5% interest rate discount for autopay if you have a U.S. Bank account. This makes it a good option if you’re willing to switch to or stay with U.S. Bank for your banking needs.

Rocket Mortgage

BEST FOR CUSTOMER SATISFACTION

3.8

Max LTV 90% Minimum Credit Score 680 Average Closing Speed Not disclosed

Why We Like It

We love Rocket Mortgage’s solid reputation and quality customer service. In fact, J.D. Power’s 2023 U.S. Mortgage Origination Satisfaction Study put Rocket Mortgage in second place among its 30 ranked lenders. This study measured overall customer satisfaction using various factors, one of which was being “easy to do business with.”

Rocket Mortgage ranked behind only Fairway Mortgage, which does not offer home equity loans.

Pros & Cons

Pros High LTV: You may qualify to borrow up to 90% of your home’s equity with a 740 credit score. Vacation homes eligible: You can take out a home equity loan on a secondary residence. Solid customer experience: Rated No. 2 in a J.D. Powers Survey that measured customer satisfaction. Cons Limited terms: Only two repayment terms are available – 10 years or 20 years. High minimum loan amount: The minimum amount you can borrow is $45,000, a higher amount than many other lenders on our list. Closing costs: While some lenders waive closing costs, Rocket charges between 2% and 6% of the loan amount.

Why Rocket Mortgage Stands Out

Besides its customer service, Rocket Mortgage also stands out because it allows borrowers with higher credit scores to borrow more of their home’s equity than most other lenders – up to 90%. This isn’t quite as high as Spring EQ, but is still above average.

We also like that you can get a home equity loan on a vacation home or secondary residence, which isn’t always the case with other lenders.

Spring EQ

BEST FOR MAXIMUM EQUITY

4.0

Max LTV 95% Minimum Credit Score 640 Average Closing Speed 21 days

Why We Like It

We like Spring EQ’s high maximum LTV offering, which allows you to borrow up to 95% of your home equity as long as you have a 700 or higher FICO score. The industry average is around 80%, meaning that you may qualify with a much larger loan with Spring EQ than almost anywhere else on this list. We also like that you can get access to your funds in about 21 days with Spring EQ, and sometimes as soon as 14 days, while the industry standard is closer to 55 days.

Pros & Cons

Pros High LTV: Borrow up to 95% of your home’s equity (with a 700 credit score). Quick funding: Receive your funds in about 21 days, which is much faster than most of its competitors. High maximum amount: Borrow up to $500,000, if you meet credit requirements. Cons Limited availability: Not available in Alaska, Hawaii, Idaho, Massachusetts, Missouri, Nevada, New York, North Dakota, South Dakota, West Virginia, Wyoming or Utah. Fees: Spring EQ charges more fees than we’ve seen with most other lenders on this list. Most notable is the $799 administration fee, along with several others, including credit report, appraisal, recording, notary and disbursement fees.

Why Spring EQ Stands Out

Spring EQ stands out for its high LTV allowance and fast funding. Many of its competitors state that it can take up to 55 days to fund a home equity loan, while Spring EQ averages about 21 days.

Discover

BEST FOR MAXIMUM EQUITY

4.0

Max LTV 90% Minimum Credit Score 620 Average Closing Speed 55 days

Why We Like It

We like that Discover doesn’t charge upfront fees for its home equity loans. It also allows you to borrow up to a 90% LTV, higher than the industry standard. This means that you can borrow up to 90% of your home’s equity without worrying about added fees. We also like that some borrowers can qualify with credit scores as low as 620, which is below the industry average.

Pros & Cons

Pros No upfront fees: No application fees, origination fees or closing costs. Competitive LTV: Access up to 90% of your home’s value – many other lenders cap it at 80%. Minimal eligibility requirements: Caters to borrowers with credit scores as low as 620. Cons Prepayment penalty: You may have to reimburse Discover for some of the closing costs if you repay the loan within three years of closing. Lengthy process: The application and approval process can take several weeks. Not BBB accredited: While Discover Home Equity Loans receives an A+ rating from the BBB, it’s not accredited.

Why Discover Stands Out

Discover stands out for lack of fees. You won’t pay origination fees, closing costs or any of the other upfront fees often associated with a home equity loan. It also offers loans to some borrowers with credit scores as low as 620, while the industry average is about 680.

TD Bank

BEST FOR RATE TRANSPARENCY

4.3

Max LTV 89.90% Minimum Credit Score 660 Average Closing Speed Not disclosed

Why We Like It

We like TD Bank’s rate table, which allows you to check the exact rates available for specific products without needing to hand over any of your personal information. This is ideal for rate shoppers, who want to quickly find lenders with solid rates. We also like TD Bank’s flexible terms of 5, 10, 15, 20 or 30 years.

Pros & Cons

Pros Rate discount: You can save 0.25% points on your interest rate by setting up autopay with a TD Bank checking or savings account. Low minimum loan: TD allows you to borrow as little as $10,000 – much less than most of its competitors. Can borrow against investment property: Unlike most lenders, TD Bank lets you take out a home equity loan against a secondary home – as long as you borrow at least $25,000. Cons Limited information: TD Bank is transparent with its rates, but not about any other aspects of its home equity loans. Not much more information is available online. Closing costs: TD’s home equity loans comes with a $99 origination fee and other possible fees. Limited availability: Physical branches are only present in 15 states and Washington D.C.

Why TD Bank Stands Out

TD Bank stands out primarily for its low minimum borrowing amount. You can borrow as little as $10,000, which is less than many competitors that start at $25,000. It also offers a rate discount for existing customers, meaning TD Bank is definitely worth a look for a home equity loan if you already have a bank account there.

Third Federal Savings & Loan

BEST FOR GOOD CREDIT

4.2

Max LTV 80% Minimum Credit Score 660 Average Closing Speed Not Disclosed

Why We Like It

We like Third Federal for its “Lowest Rate Guarantee” which promises to beat the lowest rate you can find for a comparable product or pay you $1,000. This means that if you have good credit, you’re likely to get a lower home equity loan rate here than anywhere else.

Why Third Federal Stands Out

Third Federal stands out the most for its rate beat guarantee that promises to beat any rate you find or pay you $1,000. It also stands out for giving its borrowers the opportunity to switch between fixed and adjustable rates.

Connexus

BEST FOR GOOD CREDIT

4.0

Max LTV 90% Minimum Credit Score Not disclosed Average Closing Speed Not disclosed

Why We Like It

Connexus allows you to take out as little as $5,000 – by far the lowest home equity loan amount on our list. This makes Connexus a good choice for borrowers needing a smaller amount of cash than the typical $25,000 minimum at other banks.

Pros & Cons

Pros Small minimum loan amount: Borrow as little as $5,000. Online application: Apply entirely online or by phone. High LTV: Borrow up to 90% of your home’s equity. Cons Payment processing fees: Connexus charges a $9 fee for phone payments and a $4.75 fee for online debit card payments. Must join: You’ll have to become a member to apply. High closing costs: Closing costs can range from $175 - $2,000.

Why Connexus Stands Out

This credit union stands out for offering the lowest loan amounts among the banks we researched, starting as low as $5,000.

America First Credit Union

BEST FOR MAXIMUM EQUITY

4.0

Max LTV 100% Minimum Credit Score Not disclosed Average Closing Speed Not disclosed

Why We Like It

We like that this credit union allows you to borrow up to 100% of your home’s equity, the highest out of any lender on our list. We also like that you’ll get reimbursed up to $250 if your loan is paid back within two years. It’s a prepayment incentive, rather than a prepayment penalty that you’ll find with some other lenders.

It’s a fantastic loan all-around, but there is a catch: You have to live in Utah, Idaho, Arizona or Nevada to take advantage of it.

Pros & Cons

Pros Small minimum loan amount: Borrow as little as $5,000. Prepayment reimbursement: $250 fee reimbursement if you pay the loan off within two years. High LTV: Borrow up to 100% of your home’s equity. Cons Must join: You’ll have to become a member to apply. Limited availability: Home must be located in Utah, Idaho, Arizona or Nevada.

Why America First Stands Out

America First Credit Union is the only institution on our list to allow borrowers to take out up to 100% of their home’s equity. It also offers a wide variety of home equity products that come with zero closing costs.

Understanding Home Equity Loan Rates

A home equity loan rate is the interest rate a lender charges when you borrow money using the equity in your home as collateral. 

Your rate impacts the overall cost of borrowing because it determines how much interest you'll have to pay on top of the amount you borrow. A lower rate means you'll pay less overall interest, while a higher rate means you'll pay more. 

Lenders determine what rate you qualify for based on factors like your credit score, income and the amount of equity you have in your home. The better your credit score and financial situation, the more likely you are to qualify for a lower rate. Market conditions — like the Federal Reserve's interest rate — can also impact home equity loan rates.

>> Related: Learn more about how home equity loan rates work

Home equity loans and HELOCs both give you access to the equity in your home, but they work differently.

A home equity loan is a lump sum loan you repay over a fixed term, usually with a fixed interest rate. It’s also known as a second mortgage. 

A home equity loan can be ideal if you need a large amount of money upfront for a specific expense, like paying off high-interest debt, getting a new roof, buying a boat or covering a surgery bill. 

A home equity line of credit (HELOC) is a revolving line of credit you draw upon as needed, up to a certain limit. It works much like a credit card. You only pay interest on the amount you borrow rather than the entire line amount for which you’re approved. 

HELOCs can be a good option if you need ongoing access to money, like when you’re renovating a home in stages or are covering other expenses where you’re not sure exactly how much you’ll need.

So, how do you choose the best home equity loan rate? It boils down to a few key steps. First, decide whether a fixed or variable rate is right for you. Fixed rates are most common with home equity loans. They offer predictable monthly payments that help make it easier to budget. 

Some home equity loan lenders may offer variable rates that change over time. Variable rates are typical with HELOCs. If you choose a variable-rate loan, make sure you can afford any potential interest rate increases. 

Next, you'll want to understand APR, or annual percentage rate, which includes both the interest rate and any fees associated with the loan. Comparing APRs — rather than just interest rates — can give you a more accurate picture of the overall cost of borrowing. 

Comparing rates from multiple lenders is crucial, so don’t rush the process. Taking the time to find the best home equity loan rate can lead to substantial savings.

Eric Croak, CFP

President at Croak Capital

“There's an advantage to getting a home equity product from your primary mortgage lender. Many lenders provide loyalty incentives to existing clients looking for a home equity loan or other types of loans. These benefits could include a lower interest rate, reduced or waived fees, or a mix of both. Also, be sure to ask about the possibility of waiving or reducing charges like appraisal, application, or document fees.”

Say you're looking to borrow $50,000 for a home renovation project. Lender A offers a fixed rate of 6.5% APR, while Lender B offers a fixed rate of 5.5% APR. Over a 10-year repayment period, Lender A's loan would cost you $68,129 in total, while Lender B's loan would cost you $65,116. By choosing the lower rate from Lender B, you'd save over $3,000 in interest charges.

Getting favorable home equity loan rates requires some research and preparation — but the savings make it well worth it. First, review your credit reports to ensure they’re accurate and up to date. You can request a free credit report from each of the credit bureaus: Equifax, Experian and TransUnion. 

Next, research lenders and compare rates from at least three companies. Don’t be afraid to negotiate. Let lenders know you’re shopping around, and ask if they can beat any rates, fees or terms you’ve already been given. Getting prequalified with multiple lenders can give you a better idea of what rates and terms you may be eligible for. 

Lastly, improving your credit score can help you access better rates. You can boost your score using these tips: 

• Make your loan and credit card payments on time and in full each month; set up automatic payments so you don’t forget.
• Keep your credit utilization ratio low by not using too much of your credit limit.
• Don’t open too many new credit accounts at once.
• Monitor your credit reports every month, and dispute any errors.

Meet with a nonprofit credit counselor to develop a plan to improve your credit.

Jake Skelhorn, CFP

Partner and Wealth Advisor, Spark Wealth Advisors, LLC

“Depending on the situation, you may be able to negotiate your HELOC rates. As the real estate market has cooled in most areas, lenders may be more eager to do business and will negotiate rates and fees with you to earn your business. With interest rates being as high as they are, there’s more wiggle room for deals to be made”

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

Methodology: Our System for Ranking the Best Home Equity Loans

Our team analyzed the most popular home equity loan companies on the market and put together a comprehensive 100-point scoring system using factors that are most important to you, the consumer. 

We then scored several data points, analyzing each home equity loan company’s disclosures, licensing, marketing, sample loan agreements and websites to understand their offerings and terms. 

Here is a broad breakdown of the factors we used:

Affordability (35%)

A key factor in whether a personal loan is a good deal or not is how easy it is to pay back. This will include variables such as interest rate, fees and terms.

Loan Features (35%)

Equally important for most home equity loan borrowers are the terms and conditions each lender offers. We look at a wide range of data points in this category, including minimum and maximum loan amounts, maximum loan-to-value ratio and closing time.

Customer Experience (20%)

How easy a company is to work with is also a key consideration for home equity loan borrowers. We look at a wide range of data points in this category that include customer support options, application processes and how widely available these products are.

Company Reputation (10%)

A lender’s reputation is another key factor for personal loan borrowers. We review each company’s Better Business Bureau (BBB) profile along with regulatory actions and investigations that might involve these companies.

Our rating system is designed to help you make the best and most informed decision possible when shopping for a home equity loan. However, the highest-rated lenders on our list may not make the most sense for you. To learn more, you can read our full home equity loan methodology.