Home equity lender review methodology
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Bankrate’s home equity lender reviews team evaluates many types of lenders across several criteria. Here’s how.
What is a Bankrate Score for home equity lenders?
The Bankrate Score is our home equity lender review team’s rating of various home equity lenders and their products and services. We rate lenders on a scale of one (1) to five (5) stars, with five the most favorable, based on cost, experience and other factors. As you shop for a HELOC or home equity loan and weigh the pros and cons between lenders, this rating can serve as another point of comparison.
How we calculate Bankrate Scores for home equity lenders
Affordability - 33.33%
APR (Annual percentage rate) - 80%: Accounts for lowest advertised APR (annual percentage rate), based on a borrower with a credit score of 700 or higher and a combined loan-to-value (CLTV) ratio of 80 percent obtaining a 30-year, home equity line of credit (HELOC) or home equity loan for $30,000
Introductory APR - 20%: Accounts for introductory rate offer
Why we consider this: For the average borrower, a HELOC or home equity loan represents not only a big commitment financially, but also a considerable portion of their budget month to month. We assess for affordability to help you choose a home equity lender that offers the lowest interest rates.
Availability - 33.33%
Licensing - 50%: Accounts for scope of availability based on the Nationwide Mortgage Licensing System and Registry
Credit score - 20%: Accounts for lowest credit score requirement on either a 30-year HELOC or home equity loan
Loan minimum - 10%: Accounts for lowest loan minimum on either a 30-year HELOC or home equity loan, ranging from $10,000 or less to $35,001 or more
Draw requirement - 10%: Accounts for minimum draw requirement on HELOCs
Loan products - 10%: Accounts for ability to borrow either a HELOC or home equity loan, or both
Why we consider this: While many home equity lenders work with borrowers nationwide, some only operate in certain regions or states. Some lenders, too, have a higher credit score minimum or fewer loan options, or minimum draw amounts. We assess for availability to help you choose a home equity lender that operates in your area and can connect you with the right type of loan based on your needs and qualifying criteria.
Borrower experience - 33.33%
Rate transparency - 45%: Accounts for ability to compare current HELOC or home equity loan rates via the lender’s website
Convenience - 35%: Accounts for ability to apply for a HELOC or home equity loan online; log into an app, dashboard or portal to check loan status; and/or close with e-closing or remote notarization
Customer service - 10%: Accounts for ability to contact the lender for support, including via a branch location, online (email, chat or lead form), phone or text
Fixed-rate options - 10%: Accounts for ability to lock all or a portion of HELOC balance
Why we consider this: When you shop around for a HELOC or home equity loan, often the first impression comes through the home equity lender’s website or app. Once you apply, you’ll want a lender who’s flexible and communicates with you every step of the way. We assess for borrower experience to help you choose a home equity lender that makes it simple to compare costs, get in touch when you have questions and deliver what you need on time.
How we collected this information
Bankrate’s home equity lender reviews team comprises five experts who’ve reviewed more than 30 home equity lenders. We gather lender information through direct contact with lenders, Home Mortgage Disclosure Act (HMDA) data, regulatory filings and assessments by reputable third parties. We confirm the accuracy of data at the time of review.
Our team typically conducts a comprehensive review of each home equity lender at least once a year, but some lenders might be updated on a quarterly or biannual basis, or as-needed based on new developments.
Note: Depending on method of contact, your individual credit profile and other circumstances, your experience with a specific home equity lender might differ from what’s detailed in our review.
Bankrate Score vs. customer ratings
The Bankrate Score does not take into account customer ratings and/or testimonials, which are also displayed on each lender’s review with a separate star rating. Our score is solely determined by our reviews team, free of influence from customers or partner relationships.
Bankrate score
Customer rating