One of the benefits of home ownership is building equity. Your home equity is how much your property is worth compared with how much you owe on any mortgage for it. Your home's equity can be a valuable asset that you could borrow against with a home equity loan.
Home equity loans can cover large expenses such as home repairs, home improvements and college tuition, or help you purchase a second home or consolidate high-interest debt. In those scenarios, a home equity loan may be a good solution, but there are also risks involved. Before you take out a home equity loan, understand how they work, what they cost, how to get one and how to find the best lender for your needs.
U.S. News evaluated leading home equity lenders based on product availability, customer satisfaction ratings and loan terms. As each consumer's needs are unique, U.S. News recommends top home equity lenders to meet different needs, such as lenders that could be a good choice for consumers with fair credit, or offer top-notch customer service.
Top Lenders
Bank of America: Best Lender for HELOC With No Annual Fee
Chase: Best Lender for Adjustable-Rate Mortgages
Discover: Best Lender With Zero Cash Due At Closing
Flagstar: Best Lender for Loans Up to $3 Million
Guild: Best Lender for Online Mortgages
loanDepot: Best Lender for a Lifetime Guarantee With Waived Lender Fees On Any Future Finances
NBKC Bank: Best Lender for $5,000 Close On Time Guarantee
Spring EQ: Best Lender for Financing Up to 100% of Your Home's Appraised Value
Triumph Bank: Best Lender for Online Rate Quotes and Application
If you’d like to find out more about each one of these lenders (mortgage types offered, minimu credit score, maximum DTI, satisfaction rating, maximum combined loan to value ratio, etcetera) go here: https://loans.usnews.com/home-equity-lenders
PHOTO CREDIT/SOURCE: aarp.org, BARTHOLOMEW COOKE/TRUNK ARCHIVE