Best home equity loans of November 2023

Best home equity loan lenders of November 2023

Jess Ullrich

BLUEPRINT

Updated 3:20 p.m. UTC Nov. 6, 2023

A home equity loan can be a great option for consolidating debt, renovating your house or covering another major cost. As its name suggests, a home equity loan lets you borrow from your home’s equity—the value of your property minus your existing mortgage balance. Typically, a home equity loan is a cheaper and faster funding option than a cash-out refinance.

We’ve ranked multiple lenders using several factors—ease of application process, potential fees and available discounts, accepted combined loan-to-value (CLTV) ratios, competitive interest rates, transparent borrowing requirements and accessible customer service.

Best home equity loan lenders

Old National Bank
: Best overall
TD Bank
: Best for variety of loan terms
Fifth Third Bank
: Best for no closing costs
BMO Harris
: Best for rate discount
Connexus Credit Union
: Best for fair credit
Flagstar
: Best for large loans
Navy Federal Credit Union
: Best for high borrowing limits
Compare the best home equity loan lenders
Methodology
Frequently asked questions (FAQs)

Blueprint Rating

What you should know

Old National Bank has more than 250 locations in the Midwestern U.S. and offers several personal banking products, including deposit accounts, credit cards and loans. Its home equity loans are worth considering if you’re looking for a quick loan closing.

Certain lenders take 60 days or more to close new home equity loans, meaning borrowers may wait on loan funds for months. Old National Bank indicates that it can close loans in less than 30 days, making it a convenient option if you need funds quickly.

Pros and cons

Pros

Fast closings available.
Can apply in person or online.
Accessible customer service.

Cons

Credit score requirements not disclosed.
Branches only available in seven states.

More details

Interest rates: Below the national average.
Discounts and perks: Does not disclose.
Minimum credit score: Does not disclose.
Max CLTV ratio accepted: 89%.
Closing times: Under 30 days.

Blueprint Rating

What you should know

TD Bank is an established lender providing banking services to nearly 20 million customers in North America. Its home equity loans offer competitive rates, flexible terms and a transparent lending process. All of these features combined make TD Bank our best overall pick for borrowers seeking a home equity loan.

In particular, this lender’s transparency makes it stand out from competitors. While some lenders offer limited details about the lending process, TD Bank isn’t one of them. It provides a wealth of information to help potential borrowers understand its products, timeframes, rates and terms. Borrowers who choose this lender can feel confident they’re making an informed decision.

Pros and cons

Pros

Repayment terms of 5 to 30 years.
Online and in-person customer service available.
Relatively low fixed rates.
Autopay discount available.

Cons

Closing time is longer than some competitors.
Lower CLTV ratio than some competitors.

More details

Interest rates: Below than the national average.
Discounts and perks: Fixed interest rate and a 0.25% rate discount for autopay.
Minimum credit score: 660.
Max CLTV ratio accepted: 89.99%.
Closing times: 30 to 45 days.

Blueprint Rating

What you should know

Fifth Third Bank has over 1,100 banking locations in 11 U.S. states. Fifth Third offers several banking and lending products, including home equity loans with competitive rates and other perks.

While other lenders on our list advertise low closing costs, Fifth Third doesn’t charge any closing costs for its home equity loans.

Pros and cons

Pros

No closing costs.
Fairly low minimum credit score requirement.
Starting APR is lower than what some competitors offer.
Option to apply online or in person.

Cons

Only offers home equity loans in 11 states.
Website doesn’t disclose much information about its home equity loan.

More details

Interest rates: Below the national average.
Discounts and perks: A rate discount of 0.25% when you use an eligible Fifth Third account for autopay.
Min. credit score requirements: 660.
Max CLTV ratio accepted: 89%.
Closing times: 30 to 45 days.

Blueprint Rating

What you should know

BMO Harris provides banking services to over 12 million customers in North America. It offers a wide selection of banking products, including checking and savings accounts, CDs, credit cards and loans.

BMO Harris’s home equity loans come with flexible terms of 5, 10, 15 or 20 years. Borrowers can benefit from a significant autopay discount of 0.50% when they use a BMO checking account to repay their loan.

Pros and cons

Pros

Can apply in person or online.
Generous autopay discount (0.50%) available.
Can borrow up to 89% of your home’s equity.
Loan terms of 5 to 20 years are available.

Cons

Only offers online rate quotes for certain states.
High minimum credit score requirement.

More details

Interest rates: Below the national average.
Discounts and perks: A rate discount of 0.50% when you use a BMO checking account for autopay.
Minimum credit score: 700.
Max CLTV ratio accepted: 89%.
Closing times: 30 to 45 days.

Blueprint Rating

What you need to know

Connexus Credit Union provides banking products and services to members in 50 states, offering several loan products, including home equity loans. Its credit score requirements are less strict than some competitors.

Connexus’s minimum credit score requirement is just 640. Borrowers concerned their fair credit could be a barrier to loan approval may want to put Connexus on their shortlist.

Pros and cons

Pros

Fair-credit borrowers could qualify.
Can borrow up to 90% of home equity.
Quick closings available.

Cons

Connexus credit union membership is required.
Doesn’t offer home equity loans in Maryland, Texas, Hawaii, and Alaska.

More details

Interest rates: Below the national average.
Discounts and perks: Does not disclose.
Min. credit score requirements: 640.
Max CLTV ratio accepted: 90%.
Closing times: Under 30 days.

Blueprint Rating

What you should know

Flagstar is one of the biggest mortgage originators in the U.S. In addition to mortgages, it also offers an array of banking and lending products, including home equity loans.

Flagstar will lend up to $1 million to qualified borrowers. Those with high-value homes and significant equity may appreciate the option to tap into up to $1 million worth of home equity to renovate, consolidate debt or cover another large cost.

Pros and cons

Pros

Large loans available.
Autopay discount available.
Offers online and in-person service.

Cons

Starting APR is relatively high.
Doesn’t offer home equity loans in all states.

More details

Interest rates: Below the national average.
Discounts and perks: A rate discount of 0.25% when you use a Flagstar account for autopay.
Minimum credit score: 680.
Max CLTV ratio accepted: 89%.
Closing times: 30 to 45 days.

Blueprint Rating

What you should know

While you’ll need to be an active-duty service member, veteran, or qualifying spouse to become a member at Navy Federal Credit Union, this lender offers certain perks for borrowers. Those seeking a home equity loan can access flexible terms of 5, 10, 15 or 20 years.

Many lenders only let you borrow around 80-85% of your total equity, but you can borrow up to 100% of your total equity with Navy Federal if you qualify for membership.

Pros and cons

Pros

Maximum CLTV ratio is 100%.
Flexible terms offered.
Competitive interest rates.

Cons

Strict membership requirements.
Longer closing times.

More details

Interest rates: Below the national average.
Discounts and perks: Senior military members can access special offers through Navy Federal’s Senior Enlisted Reward Program, including a $250 loyalty card when they get a home equity loan. Membership referral bonuses are also available.
Minimum credit score: Does not disclose.
Max CLTV ratio accepted: 100%.
Closing times: Over 60 days.

Compare the best home equity loan lenders

	APR	Min. credit score	Max CLTV ratio	Closing time
Old National Bank	Below national average	Does not disclose	89%	Less than 30 days
TD Bank	Below national average	660	89.99%	30 to 45 days
Fifth Third Bank	Below national average	660	89%	30 to 45 days
BMO Harris	Below national average	700	89%	30 to 45 days
Connexus Credit Union	Below national average	640	90%	Less than 30 days
Flagstar	Below national average	680	89%	30 to 45 days
Navy Federal Credit Union	Below national average	Does not disclose	100%	Over 60 days

Methodology

Our expert writers and editors have reviewed and researched popular lenders to help you find the best home equity loan. Out of all the lenders considered, the 7 that made our list excelled in areas across the following categories (with weightings): loan cost (35%), eligibility and accessibility (35%), customer service (15%), and ease of application (10%).

Within each major category, we considered several characteristics, including minimum APR, maximum combined loan-to-value (CLTV) ratio and minimum credit score requirements. We also evaluated each provider’s customer support options, borrower perks and features that simplify the borrowing process—like time to close.

Why some lenders didn’t make the cut

Of all the home equity loan lenders that we reviewed, only a fraction made the cut. The lenders that didn’t have high enough scores to be included, received lower ratings mostly due to having a lack of transparency around eligibility details like minimum credit score, APR and more.

Home equity loan alternatives

A home equity line of credit (HELOC) could be a good alternative to a home equity loan, and a personal loan may also be a smart choice.

“One of the biggest drawbacks to a home equity loan is that it’s secured by your property,” says Leslie Tayne, Founder and Head Attorney at Tayne Law Group.

“That means if you face financial hardship and are suddenly unable to make your payments, your home could be at risk of foreclosure. Many personal loans, on the other hand, are unsecured, meaning no collateral is required to secure the loan. There are still pretty serious consequences if you miss payments, but you don’t have to worry about losing what’s probably your largest asset.”

Frequently asked questions (FAQs)

You’ll likely need good to excellent credit—a score of 670 or above—to qualify for a home equity loan. But certain lenders may have less stringent requirements than others, accepting credit scores as low as 620.

The timeframe for closing on your home equity loan can vary by lender. But generally, getting your loan may take two weeks to two months after applying.

You’ll likely need an appraisal to determine your home’s current value before you can get a home equity loan. These loans are secured by your house, meaning the bank will want to know your home’s market value before determining how much they’ll approve you for or if you can get a loan.

The total amount you can borrow will depend upon factors like the amount remaining on your mortgage, the current value of your home, the lender you work with, and more. But as a general rule, lenders may let you borrow up to 85% of your home’s value, minus your current mortgage balance.

Yes, it’s possible to borrow against your home’s equity without refinancing your mortgage. To do so, you could apply for a home equity loan, a lump-sum loan secured by your home. Or you could get a HELOC, which acts as a credit line you can draw from that’s secured by your home.