Best Home Equity Loan Rates of May 2024

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.

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 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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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

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.

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.