Skip to Main Content

Better: 2024 Home Equity Review

Bankrate logo

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

At a glance

NMLS: 330511

Bankrate Score
Info
3.4
Rating: 3.4 stars out of 5
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star
  • Star

Bankrate Score

Customer Rating
Info
This lender has 0 recent reviews.
Moneybag

Loan amount

$50,000-$500,000 for HELOC

Credit Good

Min. credit score required

Undisclosed

Rates

Repayment terms

3-year draw period (interest-only), 7-year hold period (interest-only) and 20-year repayment period

Funds available in

Less than 24 hours

Better features

Here's a breakdown of some of the benefits and drawbacks of Better home equity loans.

Benefits

  • With a Better HELOC, you might be able to access up to 90 percent of your home’s equity.
  • Along with primary residences, Better allows borrowers to take out HELOCs on a second home or investment property.

Drawbacks

  • At closing, you’re required to draw at least $50,000 or 75 percent of your credit line limit, whichever is greater. (On a $500,000 line, that equals $375,000.)
  • To get the lowest possible rate, you’ll need to take a minimum line of $150,000, among other qualifying factors.

Home equity loan products offered

Home equity loan products offered Better offers home equity lines of credit (HELOCs) between $50,000 and $500,000 (up to 90 percent of your equity). You can withdraw funds for three years, during which time you’ll only pay interest. Following those three years, you’ll enter a “hold” period of seven years in which you’ll continue to make interest payments, but can no longer draw funds. After that, you’ll enter a 20-year full repayment period. You’ll need to draw a considerable portion of your equity line at closing: the greater of either $50,000 or 75 percent of the total credit line. As with most HELOC products, the rates on Better’s line of credit follow the prime rate.

Types of fees charged

Better doesn’t charge any fees for a HELOC, according to a company representative. That said, you might be able to pay points (up to 5 percent of the credit line) in exchange for a lower rate. You’ll also be responsible for closing costs such as appraisal, credit report and recording fees.

How to qualify for a HELOC with Better

To get the absolute best rate on a HELOC from Better, you’ll need a high credit score of at least 780 and a combined loan-to-value (CLTV) ratio of no more than 64 percent, and to take out a credit line of at least $150,000.

How to apply with Better

You can apply for a HELOC from Better through the lender’s website. You’ll need to set up an account to do so.

How Bankrate scored Better

Affordability 3.2/10
Availability 8.2/10
Borrower experience 8.7/10

Better.com customer ratings and reviews

logo

NMLS: 330511

This lender has 0 recent reviews.

Be the first to write a review of your experience with Better.com.

Knowledge
Rating: 0 stars out of 5
Level of service
Rating: 0 stars out of 5
Professionalism
Rating: 0 stars out of 5
Responsiveness
Rating: 0 stars out of 5
5 stars
4 stars
3 stars
2 stars
1 star
0%
0%
0%
0%
0%