Best of
These mortgage lenders are among the standouts in 2024 for home equity loans and lines of credit and cash-out refinancing.
By
Last updated on January 4, 2024
Edited by
✅ Fact checked and reviewed
Edited by
✅ Fact checked and reviewed
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
If you have equity in your home — its market value is higher than what you owe on your mortgage — you can tap it for home improvements or other financial needs. You build equity over time by paying down your home loan, and rising home prices can also make your house worth more. Typically, you’ll need to have at least 80% equity in your home to qualify for equity loan products such as home equity loans, home equity lines of credit (HELOCs) or a cash-out refinance. This means that your remaining mortgage balance must be equal to or less than 80% of the value of the home.
Home equity borrowing has an advantage: You get a lower interest rate than with a personal loan because your borrowing is backed by your home. However, you could also risk losing your home to foreclosure if you can’t make your payments. Use your home’s equity with care — many financial pros suggest using home equity only for things that increase your home’s value.
NerdWallet reviews and rates mortgage lenders to find the best for:
home equity loans
home equity lines of credit
and cash-out refinancing.
» MORE: Home equity loan, HELOC and cash-out refinancing compared
Why trust NerdWallet
- 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.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Why trust NerdWallet
- 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.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Best Home Equity Lenders
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Max LTV ▾ ▾ | Min. credit score ▾ ▾ | Learn more |
|---|---|---|---|---|
Navy Federal: NMLS#399807 LEARN MORE on NerdWallet | 5.0 /5 Home equity loans Best for home equity loans | 100% | N/A | LEARN MORE on NerdWallet |
Network Capital: NMLS#11712 LEARN MORE on NerdWallet | 5.0 /5 Home equity loans Best for home equity loans | 90% | 660 | LEARN MORE on NerdWallet |
Pennymac: NMLS#35953 LEARN MORE on NerdWallet | 4.5 /5 Home equity loans Best for home equity loans | 85% | 680 | LEARN MORE on NerdWallet |
Guaranteed Rate: NMLS#2611 LEARN MORE on NerdWallet | 5.0 /5 HELOCs Best for HELOCs | 85% | 620 | LEARN MORE on NerdWallet |
PNC: NMLS#446303 LEARN MORE on NerdWallet | 5.0 /5 HELOCs Best for HELOCs | 80% | 680 | LEARN MORE on NerdWallet |
LEARN MORE
on NerdWallet
Navy Federal: NMLS#399807
5.0
Home equity loans
NerdWallet rating
Max LTV
100%
Min. credit score
N/A
Why We Like It
Good for: Military-affiliated borrowers who want to access a lot of their equity and take advantage of a wide range of repayment options.
Pros
- Borrowers can access up to 100% of their equity, which is more than most lenders allow.
- Flexible repayment terms: 5, 10, 15 or 20 years.
- No closing costs or prepayment penalties.
Cons
- Minimum loan amount of $10,000.
- No option for calculating a customized rate before applying.
- Credit union membership is limited to veterans and current military members, their families, and certain federal employees, retirees and contractors.
Read Full Review
LEARN MORE
on NerdWallet
Network Capital: NMLS#11712
5.0
Home equity loans
NerdWallet rating
Min. credit score
660
Max LTV
90%
Why We Like ItGood for: homeowners who want a lump sum with a convenient process and relatively low closing costs.
Pros
- Borrowers can access up to 90% of home equity.
- Offers a variety of loan terms.
- No appraisal required.
Cons
- Sample rates for purchase mortgages, but not home equity loans, available online.
Read Full Review
LEARN MORE
on NerdWallet
Pennymac: NMLS#35953
4.5
Home equity loans
NerdWallet rating
Min. credit score
680
Max LTV
85%
Why We Like ItPennymac offers a wide range of repayment terms and does not penalize borrowers for early repayment.
Pros
- Terms of 10, 15, 20 and 30 years.
- Borrowers can apply for and track loans online.
- No fee for early repayment.
Cons
- Doesn’t publish home equity loan rates online.
- Not available for investment properties or second homes.
Read Full Review
LEARN MORE
on NerdWallet
Guaranteed Rate: NMLS#2611
5.0
HELOCs
NerdWallet rating
National / regional
National
Min. credit score
620
Max LTV
85%
Why We Like ItBorrowers who want to know exactly what their payments will be can benefit from Guaranteed Rate's fixed-rate option.
Pros
- CLTV borrowing limit over 80%.
- The initial balance and any additional draws have a fixed interest rate.
- Offers paths for rate discounts.
Cons
- No information about annual fees.
- Full amount (minus origination fee) must be drawn at closing.
Read Full Review
LEARN MORE
on NerdWallet
PNC: NMLS#446303
5.0
HELOCs
NerdWallet rating
National / regional
National
Max LTV
80%
Min. credit score
680
Why We Like ItGood for: PNC customers and those looking to take advantage of a fixed-rate option.
Pros
- Customizable sample rates available online.
- Available for second homes in most states.
- Offers a rate discount for autopay from a PNC checking account.
Cons
- Not available in all states.
- Charges an annual fee.
Read Full Review
LEARN MORE
on NerdWallet
Truist: NMLS#399803
5.0
HELOCs
NerdWallet rating
National / regional
National
Min. credit score
660
Max LTV
89%
Why We Like ItTruist's fixed-rate option can be attractive for borrowers who prioritize long-term planning.
Pros
- Offers a fixed-rate option.
- Highly transparent about APR ranges.
Cons
- Annual fee of $50.
- Limited info online about how borrowers can access their HELOC.
Read Full Review
LEARN MORE
on NerdWallet
Alliant: NMLS#197185
5.0
Cash-out refinancing
NerdWallet rating
Min. credit score
N/A
National / regional
National
Why We Like ItGood for: refinancers who want to work with a credit union and prefer a digital application process.
Pros
- Lower than average interest rates, according to the latest federal data.
- Sample interest rates and fees are readily available on the lender's website.
Cons
- Membership is contingent on belonging to or joining a partner organization, or living in an eligible Chicago-area community, though borrowers do not have to become members until closing.
Read Full Review
LEARN MORE
on NerdWallet
San Diego County Credit Union: NMLS#580585
5.0
Cash-out refinancing
NerdWallet rating
National / regional
Regional
Min. credit score
620
Why We Like ItGood for: Californian homeowners who want to shop refinance rates online.
Pros
- Interest rates are notably low, according to the latest federal data.
- Provides customized rate and fee quotes without requiring contact information.
Cons
- No FHA, VA or USDA mortgages.
- Loans are available only in California.
Read Full Review
LEARN MORE
on NerdWallet
Andrews Federal Credit Union: NMLS#410421
5.0
Cash-out refinancing
NerdWallet rating
Min. credit score
N/A
National / regional
National
Why We Like ItGood for: borrowers in the Mid-Atlantic looking for a lender with deep roots in their local communities.
Pros
- Offers a free float-down option for rate locks on conventional refinances.
- Provides extra support for military borrowers, including branches near bases in Germany, Belgium and the Netherlands.
Cons
- Physical branches in the U.S. are limited to Maryland, New Jersey, Virginia and Washington, D.C.
Read Full Review
More from NerdWallet
What is home equity?
Calculate your home’s value
Why you should learn your home’s value
What is equity in a home?
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.
Home equity loan
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.
HELOC
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
Cash-out refinance
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 4, 2024
Methodology
The star ratings on this page reflect each lender's HELOC, home equity loan or cash-out refinance star rating.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 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 HELOCs, home equity loans or cash-out refinances.
All reviewed mortgage lenders that offer HELOCs were evaluated based on (1) maximum CLTV, (2) whether they offer a fixed-rate option, (3) annual fees, (4) origination fees, (5) transaction fees, (6) termination fees, (7) inactivity fees (8) initial draw requirements, (9) prepayment penalties, (10) rate discounts, (11) ease of application, (12) interest rate transparency, (13) fee transparency, (14) maximum CLTV transparency, (15) maximum APR transparency, (16) draw and repayment period transparency and (17) transparency on how borrowers access their funds. The highest scoring lenders appear on this page.
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) ease of application, (6) prepayment penalties, (7) repayment term options and (8) rate transparency. The highest scoring lenders appear on this page.
All reviewed mortgage lenders that offer cash-out refinancing were evaluated based on (1) cash-out refinance loan volume, (2) cash-out refinance average interest rates, (3) cash-out refinance origination fees, (4) their rate transparency and (5) the ease of their online application. The highest scoring lenders appear on this page.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized 2022 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Home Equity Lenders of May 2024
- Navy Federal: Best for home equity loans
- Network Capital: Best for home equity loans
- Pennymac: Best for home equity loans
- Guaranteed Rate: Best for HELOCs
- PNC: Best for HELOCs
- Truist: Best for HELOCs
- Alliant: Best for cash-out refinances
- San Diego County Credit Union: Best for cash-out refinances
- Andrews Federal Credit Union: Best for cash-out refinances
