8 Best Home Equity Loans of May 2025

* Sample rates and APRs are subject to change. All information provided here is accurate as of April 30, 2025.

One of the biggest perks of owning a home is the equity it allows you to build. When you sell, that equity translates to profits. But you can borrow from that equity while still living in the home, too — using it to pay for home repairs, unexpected medical bills, or even to consolidate higher-interest debts, like credit cards.

Home equity loans and HELOCs (home equity lines of credit) are two tools you can use to turn your equity into cash. According to our research, these are the best home equity lenders currently on the market.

What to know about home equity loans

• Home equity loans turn your home equity into a lump sum of cash you can use however you’d like.
• There are also HELOCs, which work more like credit cards, allowing you to turn your home equity into a credit line you can withdraw from as needed.
• You can get home equity loans and HELOCs from big-name banks, online lenders, credit unions, financial technology companies, and online banks.
• Qualifying standards, loan amounts, property requirements, and other details are not standardized and vary by financial institution.

How we chose our top picks

Our editors and writers reviewed over 60 home equity products and lenders to ensure our list is as comprehensive as possible. We used publicly available data and interviews with lender representatives to confirm data accuracy. We then used factors such as interest rates, term options, maximum loan amounts, credit score requirements, and loan-to-value thresholds to score each lender on a one-to-five scale. What you see below are the top companies that emerged.

Read our full methodology to learn more.

Our Top Picks for Best Home Equity Lenders

• PNC Bank: Best Overall
• Figure: Best HELOC
• Discover: Best Home Equity Loan
• Connexus Credit Union: Best No-Appraisal Option
• Navy Federal: Best for Military Borrowers
• M&T Bank: Best for Low Rates
• Rate: Best for Investors
• Fifth Third: Best Flexible Rate Lock

Why we chose it: PNC Bank came out on top with a whopping 4.85 out of 5 score, making it the best-rated home equity product out of all 60+ we analyzed. The bank offers large loan amounts, low credit score requirements (the lowest we found), and a variety of rate and term options from which you can choose. Its introductory 0.25% interest rate is unbeatable, too.

Why we chose it: Figure, an online financial technology company, has our top HELOC. The line of credit comes with a low fixed interest rate and four term options, ranging from five to 30 years. Its credit score minimum is relatively low at 640, and you typically won’t need an in-person appraisal (the lender usually utilizes Automated Valuation Models, or AVMs, instead). And the best part? Many borrowers get their cash within just five days.

Why we chose it: If you’re eyeing a home equity loan, consider Discover. The lender offers loans up to $300,000 — with a maximum 90% LTV and four term options — in all states but Maryland and Iowa. Rates start at just 7.85% (as of April 30, and borrowers typically won’t need an in-person appraisal, which reduces the cost of borrowing. You won't pay any closing costs or application or origination fees, either.

Why we chose it: Connexus Credit Union is the place to look if you’re hoping to avoid the hassle and headache of an appraisal. You can get both home equity loans and HELOCs from the lender, and its low credit score minimum, 90% LTV max, and lengthy 15-year draw period on HELOCs are notable, too. You can even borrow against your second home if you have one — something not all home equity lenders allow.

Why we chose it: Navy Federal’s home equity loans have quite a few standout features that borrowers might find valuable. For those wanting extended access to cash, its HELOC is a good option, offering a lengthy 20-year draw period — longer than any other product we analyzed. If you’re hoping to tap a good amount of equity, you can look to its home equity loan instead, which allows up to a 100% LTV with no closing costs.

Why we chose it: M&T Bank’s intro 5.99% intro rate can save you significantly on interest in the first six months of your loan — especially when considering how high the lender’s loan amounts go (up to $1 million). Borrowers also get three fixed-rate lock options over the course of their loan and can choose interest-only payments during the draw period. One more notable detail: There are no application fees, closing costs, or annual fees.

Why we chose it: For those looking to cash in on an investment property or rental home, look to Rate. The online lender, formerly Guaranteed Rate, allows you to borrow against primary residences, second homes, investment properties, single-family rentals, and more, and interest rates are fixed, giving you consistency for the entire five, 10, 15 or 30-year term you chose. Most loans require no in-person appraisal.

Why we chose it: Fifth Third's flexible rate lock option allows you to secure a fixed interest rate on the lender's Equity Flexline HELOC, giving you the option of locking in favorable rate on part or all the available line of credit. You choose how long you want to lock the rate for and how much you want to pay, which can help lower your monthly costs if you need some wiggle room. The 5.99% introductory rate, available for the first six months after taking out the line of credit, is pretty hard to beat, too.

Other companies we considered

TD Bank

TD Bank was a top choice for best overall home equity lender, boasting both a HELOC and home equity loan that were highly rated under our scoring system. The lender offers a variety of term and rate options, and its loan amounts go up to $6 million.

Why we didn't choose it: The only thing holding it back was its limited geographic footprint, which prohibits many borrowers from reaping these benefits.

Achieve

Achieve is a popular online lender we also considered. Its fixed-rate HELOC is notable, offered in 10, 15, 20 and 30-year terms. The lender also has one of the lowest credit score requirements — 600 — of the companies we considered, making it a good choice for borrowers who have less than perfect credit.

Why we didn't choose it: Its short, five-year draw period could be an issue for some borrowers and its maximum loan amounts are on the lower end, too, especially if you aim to use the cash for debt consolidation — those are limited to $150,000.

Rocket Mortgage

Rocket Mortgage is often ranked as a top mortgage lender thanks to its easy online application process, multiple loan options and high customer satisfaction ratings. They provide loans in all states and can be good choice for someone looking for an online lender.

Why we didn't chose it:, Rocket's home equity products have high credit score requirements (you need a 740 to qualify for a 90% LTV) compared to other lenders we considered, and the company offers no advertised rates with which to gauge your costs. In-person appraisals are also required, which add to the cost of tapping into your equity.

SoFi

We also considered online bank SoFi for our list. The lender’s home equity loan comes in several term options and offers loans of up to $350,000 for home improvements or debt consolidation.

Why we didn't choose it: The minimum credit score of 680 is a little higher than some other options we considered and its interest rates are a bit higher than others we analyzed, putting it slightly behind other home equity loans on this list.

What you need to know about home equity loans

If you’ve never tapped your home equity before, it can be a confusing process. Here’s how these loans work and how you can borrow from your equity successfully.

What is a home equity loan?

A home equity loan is a type of second mortgage — meaning it’s a loan you take out in addition to your main mortgage. It has its own terms, interest rate, and monthly payments. And, like your first mortgage, it uses your home as collateral, so if you fail to make payments, the lender can foreclose on your home.

HELOCs are a type of second mortgage, too. The main difference lies in how you get your money. With a home equity loan, it’s a lump sum paid after closing. With a HELOC, you have a credit line you can withdraw from for an extended period of time.

How does a home equity loan work?

Home equity loans let you borrow from your home equity — or the portion of your home that you actually own. Typically, lenders will let you borrow up to 80 to 90% of your home’s value, minus the balance on your existing mortgage loan.

So, if your home is worth $300,000 and you have a mortgage balance of $150,000, you can expect to be able to tap between $90,000 and $120,000, depending on your lender’s limits.

Once you get your cash, home equity loans work just like your main mortgage. You’ll pay it off with set payments every month across a long period of time, usually between five and 30 years.

HELOCs have a slightly different repayment strategy. With these, you’ll usually make interest-only payments for the first few years of the loan, then full principal-and-interest payments once your credit line’s draw period ends.

How to choose a home equity lender

Choosing the right home equity lender is critical to achieving your goals. Not only do qualifying requirements vary by lender, but so do loan amounts, product types, and more.

When choosing where to get your home equity loan, make sure to consider the following:

• Eligibility requirements, including credit score minimums and appraisal requirements.
• Property types allowed, especially if you’re considering borrowing against a second home, vacation property, or investment home (these are harder to find lenders for).
• Loan amounts and loan-to-value ratios, as these determine how much you’ll be able to borrow.
• Fees, rates, and repayment term options available, since these factors will determine the overall cost of borrowing and the total interest you'll pay.

You should consider customer reviews and ratings, too, as well as any regulatory actions or lawsuits against the company. You can find these by searching for the lender in the Nationwide Mortgage Licensing System (NMLS) database.

Pros and cons of home equity loans

Alternatives to home equity loans

Home equity loans and HELOCs aren’t the only way for homeowners to borrow cash.

If you’re looking for other options, you can also explore:

• A cash-out refinance: This loan replaces your current mortgage with a new one — only with a larger balance. You then get the difference between the two balances back as a lump sum payment at closing. Fair warning, though: Cash-out refinancing replaces every aspect of your existing loan — including its rate and payment. This might be an ill-advised move if rates have increased since you took out your previous loan.
• A personal loan or credit card: If you want to avoid using your home equity altogether, a personal loan or credit card could be an option. Just note that these typically come with much higher rates than home equity products (and mortgages in general), so they might not be smart if you need a large amount or can’t pay off the balance quickly.
• A reverse mortgage: If you’re a senior citizen, a reverse mortgage can offer a handy way to tap your home equity. With these, the lender pays you out of your equity, either monthly, via lump sum, or as a credit line. You’ll make no monthly payments and will only repay the balance when you permanently move out, sell the house, or pass away. The government-backed version of these is only available to homeowners 62 and up, though some lenders offer proprietary options for homeowners aged 55 or more.

If you’re not sure of the best way to get the cash you need, talk to a mortgage professional or financial advisor. They’ll help you consider all your options.

Latest home equity news

Homeownership has long been regarded as one of the best ways to build long-term wealth. Home values typically increase by an average of 4% per year, leading to higher levels of home equity the longer the home is owned. With the significant jump in home values seen during the pandemic, that appreciation rate was amplified. As a result, homeowners now have a median net worth of $400,000, nearly ten times higher than a typical renter.

That increased net worth also means that homeowners are sitting on near-record amounts of home equity. The recent economic upheaval caused by the implementation of reciprocal tariffs wiped out more than $6 trillion in value, sparking concerns about a recession. As a result, more homeowners are looking toward their increased equity as a source of funding to cover expenses they might otherwise have covered through the sale of stocks.

According to a report from Home Equity Lending News, the volume of homeowners taking out home equity lines of credit in February, the most recent month for which data is available, increased by 11% year-over-year. Home equity loans are also gaining popularity, as are home equity sharing agreements, a relatively new financial tool that enables homeowners to tap into their increased wealth.

Methodology

We evaluated dozens of banks, credit unions and online home equity lenders nationwide. We gathered data on product terms, qualifying requirements, interest rates, availability, and other perks to zero in on the best ones. We scored lenders on a one-to-five scale based on five categories: interest rates (30%), loan terms (20%), credit score minimums (20%), loan-to-value ratio (15%) and maximum loan amounts (15%).

We considered companies that offered competitive interest rates since they are one of the primary factors influencing the cost of financing a home purchase,

• Companies that provided longer payback and, in the case of HELOCs, draw periods were given a higher score.
• We prioritized companies with lower credit score requirements because they make the products available to a broader group of borrowers.
• Higher scores were given to companies with higher loan-to-value ratios, which helps increase the pool of borrowers able to take advantage of the products offered.
• We gave companies that offered higher loan amounts better scores compared to their competitors.

Summary of our top picks for best home equity loans

• PNC Bank: Best Overall
• Figure: Best HELOC
• Discover: Best Home Equity Loan
• Connexus Credit Union: Best No-Appraisal Option
• Navy Federal: Best for Military Borrowers
• M&T Bank: Best for Low Rates
• Rate: Best for Investors
• Fifth Third: Best Flexible Rate Lock

More from Money

• Best No-appraisal Home Equity Loans of 2025
• Best Home Equity Sharing Companies of 2025
• How to Get a Home Equity Loan with Bad Credit