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With interest rates at historic lows, it's a fantastic time to borrow money: to pay off credit card debt, invest in your child's education, make home improvements, or splurge on that big-ticket item you've always wanted.
There are two ways to take out a home equity loan: as a cash-out refinance of your current mortgage or as a standalone second loan. Depending on your circumstances - how much equity you have in your home, the terms of your current mortgage, credit score, and so on - you may find that one approach works better than the other.
Monday, January 25th
You're probably already familiar with Discover as a credit card company, but you might not know that they're an excellent choice for your home equity loan. If you want a lender with complete transparency, no fees, and a wide range of terms to choose from, look no further than Discover. They earn our highest recommendation.
US Bank gives you fantastic interest rates and transparent fees when looking for a home equity loan. Although you'll need to speak with a representative to get an offer tailored to your situation, you can rest assured that this is a reputable, reliable lender that can help you borrow the money you need.
SoFi is known as a lender for many types of loans, from personal to mortgages, but they pass along any customers looking for home equity loans to a partner company, Spring HQ. Spring HQ has a solid reputation, and their interest rates were lower than some of their rivals. However, funding your loan may take three weeks or more, and you'll have to speak with a representative to complete the application process.
LendingTree gives you the chance to see offers from multiple lenders, helping you get the best rate on your home equity loan. You'll have to give them enough personal information to verify your identity, and then you'll be matched with up to five companies in their network. People have complained that they got a lot of unsolicited emails, calls and texts after using LendingTree's referral service. Plus, you'll still have to take the extra step of choosing a lender and going through their application process.
Figure is one of the newer lenders in our review. Their application process is 100% online, and they promise approval within minutes and funding in as few as five days. However, their interest rates and fees were much higher than we expected, and their "F" rating from the Better Business Bureau was the clincher when giving this company our lowest ranking among providers of home equity loans.
Shopping around for the best rates on your home equity loan is a wise idea - don't just go to your current lender and assume they'll give you the lowest interest rate or best terms! It's worth your time to consider multiple lenders; even a difference of a few tenths of a percent can save you thousands of dollars in the long run, and some companies will reduce their fees or eliminate them completely just to earn your business.
Fortunately, the internet makes it effortless to compare your options with just a few clicks of the mouse. Many lenders provide their rates upfront, so you'll know if they're worth considering before you even begin an application; others may do a "soft pull" on your credit history, so that they can offer personalized rates based on your specific situation. Plus, some lending platforms give you the ability to compare offers from multiple banks with a single online form, saving you time while connecting you with the best rates on the market.
As you decide which provider to use for your home equity loan, there are several factors that can guide your choice:
TopConsumerReviews.com has reviewed and ranked the top options for home equity loans available today. We hope this information helps you get the money you need to pay down debt, start your home improvement project, or invest in a new business - the possibilities are limitless!
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