LendingTree HELOC Review
As the country’s largest online loan marketplace, LendingTree is a one-stop shop for customers who wish to purchase a home equity line of credit (HELOC).
Best for Comparing Quotes from Multiple Home Equity Lenders
LendingTree is an excellent platform for comparing quotes from multiple lenders for borrowers seeking the best home equity loans. By utilizing LendingTree, borrowers can easily submit a single application and receive multiple quotes from various lenders within their network. The streamlined process saves time and effort as loan borrowers can compare interest rates, terms and fees all in one place, enabling them to make an informed decision.
Additionally, the website provides access to LendingTree reviews and ratings of the lenders in their network, further assisting borrowers in evaluating the reliability and reputation of potential lenders. Overall, LendingTree's platform simplifies the loan comparison process, empowering borrowers to find LendingTree home equity loans for their specific needs.
LendingTree HELOC Pros and Cons
- Compare multiple lenders at once
- Find HELOCs more easily
- Great online resources
- Spam calls
- Multiple hard credit pulls
Pros explained
Compare multiple lenders at once
LendingTree saves the borrower time by presenting a simplified process in which they only fill out one application but can receive offers from up to five different lenders. This can be particularly helpful for borrowers looking to tap into their home equity with a HELOC.
Find HELOCs more easily
Not every lender offers HELOCs. Many non-bank lenders don’t offer them because it makes little financial sense for them. HELOCs can’t be sold on a secondary market like other home loans, and HELOCs are also typically for lower amounts which means lenders don’t get much return on them. By using LendingTree, borrowers can skip the burdensome task of looking for lenders that offer HELOCs, and can even use the offers received to negotiate lower rates among the lenders.
Great online resources
LendingTree’s website is also loaded with comparative guides, FAQs, and calculators that help borrowers make informed decisions. If you have any doubts about which instrument is better for tapping into your home equity, perusing LendingTree’s guides can help you determine if you’re better off with a HELOC, home equity loan, or cash-out refinance.
Cons explained
Spam calls
One of the biggest complaints we’ve heard from LendingTree users is the potential for excessive and unwanted communication from lenders. The personal and financial information that borrowers provide LendingTree will be transmitted to at least five different lenders who will no doubt attempt to entice customers to choose their business over others. These unwanted and sometimes aggressive marketing strategies can be a turn-off, especially if one has already chosen another lender. (It should be noted that LendingTree itself does not participate in these tactics. In fact, the company offers an opt-out feature from its own communications.)
Multiple hard credit pulls
An additional concern for borrowers is the number of credit inquiries that might result from several lenders performing their own credit pulls. If done within the same 45-day period, credit agencies only consider it as one inquiry. However, lenders are not operating on the same schedule and might perform these inquiries at different times, potentially causing your credit score to tumble.
LendingTree home equity offerings
When you buy a home and start paying off the mortgage, you build up home equity, that is, the amount of the home you own. Second mortgages, such as home equity loans and HELOCs, allow you to access that equity to use for whatever you may need.
Home equity loans
A home equity loan allows homeowners to borrow against the equity in their current property. Equity is the difference between the current market value of your home and the outstanding balance on any existing mortgages or loans. Home equity loans are commonly used for home renovations, debt consolidation, education costs or other major expenses.
With a home equity loan, borrowers receive a lump sum of money from the lender, typically at a fixed interest rate and with predetermined repayment terms. The loan is secured by the borrower's home, meaning that if the borrower fails to make all home equity loan payments, the lender can potentially foreclose on the property. It is essentially a second mortgage.
Home equity lines of credit (HELOCs)
A LendingTree home equity line of credit (HELOC) is a revolving line of credit from which you can withdraw funds during designated draw periods and pay the amount back before specific dates. Usual reasons for withdrawing funds might be to cover emergency expenses, pay down higher-interest debt, purchase additional property or for home improvement projects. In fact, the interest on HELOCs could be tax-deductible for this last reason.
LendingTree does not list its partners, and the partners that are displayed ultimately depend on several factors including your location and the personal information you input. So unless an application is completed, we can’t say within any degree of certainty which rates you are going to be offered.
| LendingTree Process |
| The application process can start on the website or mobile application |
| By answering predetermined questions and providing personal information, LendingTree will determine the type of loan that best fits your needs. |
| LendingTree shares the information provided, such as phone number, address, social security number, and financials, with up to five companies. |
| These five lenders present their offers for you to compare. |
| You can then contact any of those lenders to continue with the application process. You can also use any of the offers as leverage to negotiate with other lenders to try and get a better deal. |
| At this point, LendingTree is no longer involved in any communications or agreements between the lender and the borrower. |
LendingTree HELOC Pricing
Since LendingTree does not service the HELOCs offered through its service, it does not impose any fees related to them. Additionally, LendingTree does not charge customers for the use of its platform. Any possible fees regarding the loan product you choose come directly from the lender. However, these fees are usually presented to the customer by the lender before any deal is agreed upon. It’s up to the customer to make sure they receive and understand the terms and conditions of the loan product they are purchasing.
After the customer provides the initial information and the lender’s offers are presented, LendingTree does not participate in the rest of the application process and does not determine rates, terms, or approval of the loan.
Check directly with your lender about your home equity loan rates, monthly payments, closing costs, appraisal fees and any loan origination fee.
LendingTree HELOC Financial Stability
Moody's, a reputable financial rating and research firm, recently lowered LendingTree's corporate family ratings score to Caa1, on a scale of Aaa to C, meaning the company is considered a high credit risk.
However, it is important to note that a LendingTree HELOC is not directly provided by the company, as it does not actually fund the loans it facilitates. Therefore, the Moody's rating assigned to LendingTree is significantly less crucial compared to the rating given to the lender you choose to establish a financial relationship with once your application is approved.
LendingTree HELOC Accessibility
LendingTree’s online rate quote application is available to U.S. borrowers in all 50 states.
Availability
LendingTree does not service the loan products it offers and, as such, provides no customer service for HELOCs. Lenders are in charge of delivering customer service options directly to their customers.
Nevertheless, borrowers using LendingTree’s services can contact customer care specialists over the phone to receive assistance with the initial application process or any technical issues with its website or mobile app.
Contact information
LendingTree customer service is available by phone between 9 a.m. to 8 p.m. EST, Monday through Friday. LendingTree's phone number is (800) 505-7916. The company website also offers an online contact form to request a response by email.
User experience
The LendingTree website offers a HELOC rate tool to help borrowers get quotes from up to five lenders, all with one application. To get started you’ll need your zip code and current mortgage balance. LendingTree also offers a number of resources to help potential borrowers understand the different loan types offered and how they can be used.
The website’s resources include home equity loan calculator tools as well as:
- LendingTree home equity loan rates, requirements and reviews
- LendingTree HELOC rates, requirements and reviews
- LendingTree credit score tools
LendingTree Customer Satisfaction
LendingTree gets above-average ratings from online review sites. Customers appreciate the quick and easy application process but complain about receiving excessive phone calls from lenders after completing the LendingTree application.
A home equity line of credit (HELOC) typically has variable interest rates. Unlike a home equity loan with a fixed interest rate, a HELOC allows you to access a revolving line of credit using your home equity as collateral. While it is less common, there are some financial institutions that offer fixed-rate HELOCs. LendingTree HELOC rates will vary based on your individual circumstances.
Nevertheless, HELOCs have the advantage of (usually) offering lower interest rates than credit cards or personal loans. They might also offer tax breaks if used for certain purposes, such as home improvements.
Typically, the HELOC funding process involves several steps with a timeline that averages two to six weeks. Steps may include application submission, document verification, property appraisal, underwriting and final approval.
How We Evaluated LendingTree HELOC
When evaluating LendingTree, we took a number of different factors into consideration. These factors included customer reviews, product range and availability. We also examined the company's financial strength ratings and user experience.
While these factors were taken into account, they may not cover all the aspects that are important to you. We recommend conducting your own research before making a decision and choosing a lender.
Summary of Money’s LendingTree HELOC Review
- Largest online loan marketplace offering multiple loan products that tap into your home equity, including HELOCs
- Get up to five different HELOC offers by completing just one application, particularly helpful since smaller lenders usually don’t offer HELOCs
- LendingTree also offers home equity loans, cash-out-refinance and personal loans, in case a HELOC is not the best fit for you
- By providing contact information, the customer opens themselves to unwanted sales pitches and marketing from lenders
- Using the marketplace does not guarantee finding the lowest market rates for HELOC