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The best in home equity for 2022

The Bankrate Awards

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The best in home equity loans in 2022

The decision to take advantage of your home equity with a home equity loan or line of credit can require a lot of consideration. From credit score requirements and APRs to repayment terms and fast funding, there are many factors to consider when choosing a lender. It can be difficult to sort through these aspects and find that information on your own. Bankrate is here to help. 
 
We rigorously and objectively evaluated over 30 home equity lenders to find the best lenders across several categories. The following winners provide the best value for their particular category and may help you take advantage of your home’s equity on your own terms.  
 
Here are our winners of the 2022 Bankrate Awards for Best Home Equity Lenders. 
How we picked these lenders:
  • Bankrate gave the most weight to low APRs and best overall scores.
  • We used factors such as fastest funding, minimum credit scores and long repayment terms.
  • We evaluated overall availability, affordability and customer experience with an emphasis on online tools and bonus features. 

Best for borrowers with fair credit

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Figure

Read the full review by our Bankrate reporters
Highlights Quick funding in as little as five days Customer service available seven days a week Loans up to $250,000

While Figure does not offer home equity loans, their home equity lines of credit come with a low starting APR of 3 percent, and borrowers can expect funding within five days. The application process is fully online, and approval can occur within 5 minutes of applying. The lender charges few fees (one-time origination fee) and maintains reasonably low minimum loan and draw amount requirements. Most importantly, Figure requires a minimum credit score of only 620 to apply, making Figure a great choice for borrowers with fair credit (580-669).

  • Low origination fee and no appraisal fees, annual fees, late fees or prepayment penalties
  • Starting APR of 3 percent, which is lower than the national average of around 4.1 percent
  • Minimum credit score of 620, which allows people with lower credit scores to get loans when other lenders would not

The winner of the best home equity loan for borrowers with fair credit needed to score the highest on Bankrate Score criteria. In the event of a tie, the lender with the lowest starting APR was chosen.

Best for borrowers with good credit

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Spring EQ

Read the full review by our Bankrate reporters
Highlights Range of loan amounts Fully online 5.21% starting APR

Spring EQ only offers home equity loans, with a minimum APR of 5.21 percent. The lender requires a minimum credit score of 680, making it an ideal choice for borrowers with good credit (670-799). The only fees for this lender are a late fee for monthly payments and any fees associated with a required appraisal. Loans range from $25,000 all the way to $500,000 for qualified borrowers. Borrowers can expect an approval decision the same day they apply, and funding in as few as 11 days. The application process can be completed online with online account access, but the lender does not have an app.  

  • Minimum credit score is 680, which is on the low end of the good credit range of 670-799
  • SpringEQ only charges fees for the required appraisal and for late payments
  • Same-day approval helps people receive a loan quickly when needed
The winner of best home equity loan for borrowers with good credit needed to score the highest on Bankrate Score criteria among the lenders that offer loans to this credit range.

Best for borrowers with excellent credit

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TD Bank

Read the full review by our Bankrate reporters
Highlights Offers HELs, HELOCs Discount for auto-payers Comparable interest rates

TD Bank offers both home equity loans and lines of credit with starting APRs of 4.69 percent and 3.99 percent, respectively. The lender requires a minimum credit score of 740, making it a good option for borrowers with excellent credit (800+). TD Bank charges several fees and requires minimum loan amounts of $25,000 for HELOCs and $10,000 for home equity loans, but the lender does not require a minimum draw amount and they offer loan repayment terms up to 30 years. It also offers a 0.25 percent discount for auto-payers. 

  • No minimum draw requirements so people can borrow what they need
  • Minimum credit score of 740, which means it caters services to those in high credit tiers
  • Repayment period of up to 30 years so borrowers can find a payment plan that works for them on large loans
The winner of best home equity loan for borrowers with excellent credit needed to score the highest on Bankrate Score criteria among the lenders that offer loans to this credit range. 

Best for home improvement

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Figure

Read the full review by our Bankrate reporters
Highlights Online application Same day approval, fast funding 620 minimum credit score

When choosing a lender whose home equity products work best for home improvement expenses, we evaluated each lender based on repayment period length, fund delivery speed and annual percentage ratings. Figure has a long repayment period of 30 years, quick funding within just five days and one of the lowest APRs among lenders, at just 3 percent.

  • 3 percent starting APR so qualified borrowers will spend less over the lifetime of the loan
  • Repayment term of up to 30 years, which makes it easier to budget for large home improvement projects
  • Loans range from $15,000 to $250,000, allowing people to find funding for both larger and smaller projects
To determine the best home equity lender for home improvement, Bankrate sorted lenders into those that offered long repayment times, fast fund delivery times and low APRs. The lender that scored the highest average score across the three categories won.

Best for debt consolidation

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Figure

Read the full review by our Bankrate reporters
Highlights Fast approval Fast funding Online video notary and support

Figure offers one of the lowest APRs for home equity lines of credit, at just 3 percent. The lender only charges one fee, which is a one-time origination fee of up to 4.99 percent of the initial draw. These factors were weighed heavily when determining the best lender for debt consolidation. The application process is quick, easy and fully online.

  • Scores high on overall availability, affordability and customer experience
  • One of the lowest starting APRs among HELOC loans
  • Few fees, which helps people looking to pay off debt faster with few added costs
Bankrate chose the best home equity loan based on low starting APRs and low fees. To determine how the winner was calculated, we looked at how much the fees added to the overall cost of the loan.

Best online lender

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Figure

Read the full review by our Bankrate reporters
Highlights Online application Customer support Educational resources

Figure offers borrowers a fast and straightforward online experience. The application process is entirely online, with approval within 5 minutes of applying. Users can access all of their information via online accounts, and customer service is available seven days a week. Figure has an app available in both the Apple app store and Google Play.

  • Best overall and customer experience scores show that borrowers are able to easily access their loan information and get help when needed
  • Fast online process completed in as little as 14 days
  • High-rated apps for Apple and Android devices make it possible to manage loans on the go
To determine the best online lender for home equity, Bankrate compared online-only lenders and picked the one with the best overall Bankrate Score.

Best from a bank

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Citizens Bank

Read the full review by our Bankrate reporters
Highlights Fast application approval Online application/account access Customer service

With Citizens Bank, borrowers can expect their applications to be approved within one business day, with the entire process taking approximately 45 days. The lender offers a low APR of 3 percent, no minimum draw requirements and customer service is available seven days a week. Citizens Bank offers an online application and account access for their home equity products. The bank also has an app available on both the Apple app store and Google Play.

  • Scores high for overall availability, affordability and customer experience
  • Low starting APR of 3 percent means borrowers will spend less on the loan than with higher APRs
  • Apps are available for Android and Apple with high customer reviews for functionality
To determine the best home equity loan from a bank, we started by narrowing the list of lenders to banks with online availability. The winner received the best Bankrate Score for accessibility, affordability and customer experience.

Best innovative home equity product

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Figure

Read the full review by our Bankrate reporters
Highlights Fully online Online video notary and support Customer service

Figure offers a fully online application process, online account access, an auto-payment option, an app and customer service seven days a week. In addition, Figure offers fast funding with same-day approval and funding within five days. The Figure site is easy to navigate, with a variety of tools and resources readily available to make the process of borrowing easier and more accessible. The lender offers an eNotary via video chat in order to keep the process fully digital. They also give borrowers the option to use BlockChain cryptocurrency.

  • Online resources like calculators and informational articles to help current and potential borrowers make well-informed decisions
  • Fully digital application and approval process make it easier to go through the loan process
  • Fast funding in just five days help people get the money they need faster
The best innovative home equity product was determined by the number of online options, tools and resources available. In the event of a tiebreaker, the winner was determined by the lender with the highest Bankrate Score.
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