27-05-2025
Best Home Equity Loan Lenders for 2025
A home equity loan lets homeowners borrow a lump sum against their property's value to pay for things like home improvements, debt consolidation or other large expenses.
Unlike home equity lines of credit (HELOCs), home equity loans typically have fixed interest rates. That means your monthly payment will be the same over the term of your loan.
Before committing to a home equity loan, create a repayment plan. When you take out a home equity loan or HELOC, your home serves as collateral, which means if you're unable to repay the debt, you risk losing your house.
Home equity loans are available from a variety of lenders, including banks, credit unions and home equity loan companies. Just like when you took out your mortgage, it's important to compare loan offers from at least two or three different lenders before making a decision. Experts agree that comparison shopping is one of the best ways to get a lower interest rate.
I spoke with experts and researched dozens of different lenders to create CNET's list of the best home equity loan lenders.
Best home equity loan lenders for 2025
Lender APR Loan amount Loan terms Max LTV ratio U.S. Bank From 7.65% Not specified Up to 30 years Not specified TD Bank 7.99% (0.25% autopay discount included) From $10,000 5 to 30 years Not specified Connexus Credit Union From 7.31% From $5,000 5 to 15 years 90% KeyBank From 9.59% (0.25% autopay discount included) From $25,000 1 to 30 years 80% for standard home equity loans, 90% for high-value home equity loans Spring EQ Fill out application for personalized rates Up to $500,000 Not specified 90% Third Federal Savings & Loan From 6.99% $10,000 to $200,000 Up to 30 years 80% Frost Bank From 7.32% (0.25% autopay discount included) $2,000 to $500,000 15 to 20 years 90% Regions Bank From 6.75% to 14.125% $10,000 to $250,000 7, 10, 15, 20 or 30 years 89% Discover From 7% for first liens; From 8.55% for second liens $35,000 to $500,000 10, 15, 20 or 30 years 90% BMO Harris From 8.97% (0.5% autopay discount not included) From $25,000 5 to 20 years Not specified
Note: The above APRs are current as of May 6, 2025. Your APR will depend on factors such as your credit score, income, loan term and whether you enroll in autopay or other lender-specific requirements.
U.S. Bank Good for nationwide availability
APR: From 7.65%
U.S. Bank offers both home equity loans and HELOCs in 47 states (not including Texas, South Carolina and Delaware). You can borrow as little as $15,000 or up to $750,000 ($1 million for properties in California) depending on the available equity in your home. The bank offers a range of payback terms up to 30 years. We like U.S. Bank because of its extensive nationwide availability, many customer support options and price transparency — meaning you can get a personalized rate quote and fee information by filling out some basic information, no credit check required.
Read CNET's review of U.S. Bank.
TD Bank Good price transparency
APR: From 7.99% (0.25% TD checking account discount included)
TD Bank offers home equity loans and HELOCs in 15 states. Loan amounts for home equity loans start at $10,000. TD Bank offers payback terms ranging from five to 30 years. Although its nationwide availability is limited, TD Bank ranks high for its price transparency and wide variety of product offerings, including interest-only and rate-lock options on its HELOCs. The bank's good online user experience, price transparency and customer service options stand out to us.
Read CNET's review of TD Bank.
Connexus Credit Union Flexible credit union eligibility
APR: From 7.31%
Connexus Credit Union offers home equity loans and HELOCs in 46 states (excluding Alaska, Hawaii, Maryland and Texas). Loan amounts range from $5,000 to $200,000. Because Connexus is a credit union, its products and services are only available to its members. You can see the full membership eligibility requirements here. Connexus offers expansive nationwide availability and a few different product options, part of the reason this lender ranked highly for us. Its straightforward application process and relatively easy membership requirements is another bonus.
Read CNET's review of Connexus Credit Union.
KeyBank Good option for wide range of product offerings
APR: From 9.59% (0.25% client discount included)
KeyBank offers home equity loans to customers in 15 states and HELOCs to customers in 44 states. Aside from a standard HELOC, KeyBank also offers interest-only and rate-lock options. KeyBank's extensive product offerings stand out to us. The lender's streamlined application process for existing users is also useful. Both existing and new users will appreciate the online user experience and availability of customer service options from KeyBank.
Read CNET's review of KeyBank.
Spring EQ Good online application experience
APR: N/A (Personalized rates available after preapproval)
Spring EQ serves customers in 38 states, offering home equity loans and HELOCs with amounts ranging from $5,000 to $500,000. You can borrow up to 90% of your home's value, but you must have a minimum credit score of 640 and a debt-to-income, or DTI, ratio of 50% or less. It doesn't display rates online, but we rank Spring EQ highly because you don't need to undergo a hard credit check to see personalized rates. You can get prequalified for a loan with only basic information.
Read CNET's review of Spring EQ.
Third Federal Good for long repayment period
APR: From 6.99%
Third Federal Savings & Loan first opened in 1938. Today, the bank offers home equity loans in eight states and HELOCs in 26 states. Third Federal also offers a unique product not commonly found among other lenders: a 5/1 adjustable-rate home equity loan. Despite its limited nationwide availability for home equity loans, we like Third Federal for its rate match guarantee and its unique product offerings.
Read CNET's review of Third Federal.
Frost Bank Good option for Texas borrowers
APR: From 7.32% (0.25% autopay discount included)
Frost Bank, headquartered in San Antonio, Texas, offers products only to Texas residents. It offers home equity loans, HELOCs and interest-only HELOCs. Home equity loans are available with loan amounts of $2,000 and up, while HELOCs are available with line amounts of $8,000 and up. Although Frost Bank's nationwide availability is very limited, the bank has a helpful product selection tool, easy application process and good price transparency, making it a strong option for Texas borrowers.
Read CNET's review of Frost Bank.
Regions Bank Good for autopay discounts
APR: From 6.75% (Regions client discount included)
Regions Bank serves people across the South, Midwest and Texas, offering home equity loans and HELOCs in 15 states. Home equity loans have amounts of $10,000 to $250,000 and repayment periods of either seven, 10, 15 or 20 years. For home equity loans with Regions, there are no closing costs. Regions ranks highly because of its low fees, variety of application options and wide range of customer service options. However, Regions' nationwide availability is fairly limited.
Read CNET's review of Regions Bank.
Discover Good for no fees or closing costs
APR: From 7% first liens, from 8% second liens
Discover is known primarily for its credit cards, but it also offers home equity loans — available in 48 states. The lender doesn't offer HELOCs at all. For Discover home equity loans, amounts range from $35,000 to $300,000. We like that Discover has no fees or closing costs attached to its home equity loans. Discover's nationwide availability for its home equity loans and good price transparency also stood out to us.
Read CNET's review of Discover.
BMO Harris Good introductory APR
APR: From 8.97% (0.5% autopay discount not included)
BMO Harris products and services are available in 48 states (all but New York and Texas). BMO Harris offers home equity loans and three variations of a HELOC. Loan amounts for home equity loans start at $5,000 and repayment periods range from five to 20 years. You can borrow up to 89.99% of your home with most BMO Harris home equity loans. A 100% maximum CLTV — the ratio of all secured loans on a home to the value of home — option is available for low-to-moderate income borrowers or Low to Moderate Income Census Tract customers who need to make home improvements. We like that BMO Harris offers both home equity loans and three types of HELOCs almost nationwide. We found its online application less straightforward than its competitors.
Read CNET's review of BMO Harris.
How to find the best home equity loan lenders
You don't need to get your home equity loan from the same mortgage lender you already have, although it may make sense to do so. Shopping for a different lender and comparing offers might help you secure a lower interest rate. Be sure to ask questions upfront to understand what rates and fees are associated with your home equity loan.
Remember, the rate a lender advertises isn't always the rate you qualify for. Your exact interest rate will depend on multiple factors, including your DTI ratio, LTV ratio and loan amount. The lowest rates are generally reserved for borrowers with a good credit score and clean credit history.
Also, make sure to look at the lender's APR, not just the interest rate. The APR includes fees, so it will be a more accurate figure of what you'll pay.
A good lender will make you feel comfortable with the borrowing process and make sure you understand what upfront or ongoing fees apply to the loan.
When comparing lenders, also consider how convenient the application process is, if there are any local branches available to you, the lender's customer support options and any available rate discounts.
What is a home equity loan?
A home equity loan offers you a one-time cash installment, which you'll pay back over a set period. A home equity loan is similar to taking out a personal loan, except this loan is secured by the value of your home ( specifically, the difference between what your home is worth and what you owe on your mortgage). If you default on payments for any reason, the lender could take your home as payment.
The amount you can borrow with a home equity loan is determined by the amount of equity you have. Most lenders cap the amount you borrow to more than 85% of your home's equity, but that number will vary from lender to lender.
Money from a home equity loan can be used for anything, ranging from home renovation projects to consolidating variable-rate debt. A home equity loan is best for borrowers with fixed costs and a defined goal for your money.
Unlike a HELOC, a home equity loan typically has a fixed interest rate, so your monthly payment will be the same over the term of your loan.
How to get a home equity loan
Applying for a home equity loan is similar to applying for a mortgage. You'll first want to interview multiple lenders to determine which lender can offer the lowest rates and fees. The more companies you speak with, the better your chances of finding favorable terms.
You'll also need equity in your home. Almost all lenders require you to have at least 15% to 20% equity in your home before being considered for a home equity loan. Lenders will then take into account your credit score, income and current debt-to-income ratio to determine your interest rate.
Be prepared with financial documents, such as pay stubs, W-2s, proof of ownership and the appraised value of your home. Once you submit your application, the final step is closing on your loan.
Requirements for a home equity loan
Although it varies by lender, to qualify for a home equity loan you're typically required to meet the following criteria:
Have at least 15% to 20% equity in your home: To know your home equity, i.e., the amount of home you own, subtract what you owe on your mortgage and other loans from the current appraised value of your house.
Adequate, verifiable income and stable employment: Proof of income is a standard requirement to qualify for a home equity loan. Check your lender's website to see what forms and paperwork you need to submit.
A minimum credit score of 620: Lenders use your credit score to determine the likelihood that you'll repay the loan on time. Having a stronger credit score will help you qualify for a lower interest rate and more amenable loan terms.
A debt-to-income ratio of 43% or less: Divide your total monthly debts by your gross monthly income to get your DTI. Like your credit score, your DTI helps lenders determine your capacity to make consistent payments toward your loan. Some lenders prefer a DTI of 36% or less.
Alternatives to home equity loans
If a home equity loan isn't the right move for you, there are other financing options.
HELOC
A HELOC offers you a revolving line of credit against the equity you've built in your home. You can take out money as needed, up to your total line of credit, during your draw period (usually 10 years). Similar to a credit card, there's a limit on how much you can borrow at once. After your draw period ends, you'll enter your repayment period and make payments toward both the interest and principal (how much money you've borrowed) on your loan.
The interest rates for a HELOC are usually variable, so rates will generally rise and fall along the prime rate.
A HELOC is a good choice if you're unsure of how much money you need or if you want access to an ongoing source of cash over a period of months or years.
Personal loan
When you take out a personal loan, you receive a one-time cash infusion that you pay back over the life of the loan. Personal loans tend to have higher interest rates than home equity loans, but they're less risky because you don't put your home up as collateral.
Cash-out refinance
Unlike a home equity loan or HELOC, a cash-out refinance replaces your existing mortgage with a new home loan. Ideally, the new mortgage has a lower interest rate and more favorable terms. A cash-out refinance provides you with an upfront sum of cash that's then added back onto the balance of your new mortgage.
The bottom line
A home equity loan allows you to leverage your home's equity without disturbing your primary mortgage rate. Make sure to shop around and compare lenders to find the best rate and most amenable loan terms for your needs. In addition to interest rates, consider a lender's APR, rate discounts, application process and any costs or fees associated with the loan.
FAQs
Is it a good idea to borrow from your home's equity?
Borrowing from your home's equity, whether through a home equity loan, HELOC or cash-out refinance, can be a good way to access large amounts of cash at relatively low interest rates compared with credit cards and personal loans. It's not without risks. Because your house acts as collateral for the loan, you could lose your home if you fall behind on payments. That's why it's important to only borrow what you can afford to pay off. Avoid borrowing against the equity of your home for nonessential expenses such as a vacation, wedding or luxury purchase.
How much can you borrow with a home equity loan?
Exact requirements vary by lender, but most home equity loan lenders limit your loan-to-value ratio to 85% or under. This means that the total value of the home equity loan you're seeking, plus the outstanding loan balance on your primary mortgage, can't exceed 85% of your home's appraised value.
For example, if you have a house worth $300,000 and a $100,000 mortgage balance, the maximum amount you can borrow with a home equity loan would be $155,000 (assuming a maximum LTV of 85%).
How much can you borrow with a home equity loan?
When deciding whether to grant you a home equity loan, lenders look at multiple factors: your credit score and credit report, your debt-to-income ratio, your monthly income and how much equity you have in your home, among other things. Each lender also has its own unique underwriting requirements. In general, you'll want a credit score of at least 620 to have the best chance of getting a home equity loan. Keep in mind that your credit score can also affect the interest rate you get. The lowest advertised rates are usually reserved for borrowers with higher credit scores — usually 700 and above.
Methodology
We evaluated a range of lenders based on factors such as interest rates, APRs and fees, how long the draw and repayment periods are, and what types and variety of loans are offered. We also took into account factors that impact the user experience such as how easy it is to apply for a loan online and whether physical lender locations exist.
Learn more about our methodology here.
