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Better: 2023 Home Equity Review

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At a glance

NMLS: 330511

Info We are in the process of gathering reviews for this lender and will have them available starting October 2023
Bankrate Score
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3.8
Rating: 3.8 stars out of 5
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Loan amount

$50,000-$500,000 for HELOC

Credit Good

Min. credit score required

Undisclosed

Rates

Repayment terms

15 years to 30 years

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.

PROS

  • Checkmark

    With a Better HELOC, you might be able to access up to 90 percent of your home’s equity.

  • Checkmark

    Along with primary residences, Better allows borrowers to take out HELOCs on a second home or investment property.

CONS

  • Close X

    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.)

  • Close X

    To get the lowest possible rate, you’ll need to take a minimum line of $150,000, among other qualifying factors.

Founded in 2014, Better is a national online mortgage lender offering some of the most common types of home loans, including home equity lines of credit (HELOCs) and home equity loans. 

Better snapshot

Home equity loan types Home equity line of credit (HELOC)Home equity loan
Loan amounts $50,000-$500,000 for HELOC
Credit score minimum Undisclosed
Repayment terms 15 years to 30 years
Average time to approval Less than 24 hours

How Bankrate rates Better

Bankrate Score 3.8
Affordability 3.5/5
Availability 3.4/5
Borrower experience 4.5/5

Methodology

To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.

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.

Type 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 in exchange for a lower rate.

Home equity loan products offered

Better offers home equity lines of credit (HELOCs) and second mortgages, also known as home equity loans. You can get a HELOC between $50,000 and $500,000 (up to 90 percent of your equity), and it comes in terms of either 15 years or 30 years. 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.

How to qualify for a HELOC with Better

While there might be lower thresholds to qualify for a HELOC with Better, to get the absolute best rate, 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 get started

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

Better.com customer ratings and reviews

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NMLS: 330511

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