How to Find the Best Home Equity Loan Rates
Home equity loans and HELOCs allow homeowners to borrow against the market value of their homes. Both typically include an initial fixed-rate period followed by variable-rate repayment terms.
Rates depend on factors like lender, credit score and loan amount; here are a few lenders offering some of the most competitive home equity loan rates.
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Discover
Discover Home Equity Loans offer fixed rate home equity loans that make an excellent solution for debt consolidation or projects requiring specific amounts of money, with tax deductible payments for any interest payments on these loans. BBVA Compass also provides home equity loans at competitive interest rates; qualifying borrowers need a credit score above 620 to take advantage of them and may reimburse closing costs up to an amount equaling $500.
As with any type of financing, consumers should shop around to find the most competitive home equity loan rates. Take into account terms, monthly payment and customer service offered by each lender (such as whether or not they provide personal bankers for assistance or online account management with automatic payments), as well as how much equity there is in their property – these factors will ultimately increase your odds of qualifying for better home equity loan rates; it’s therefore vitally important that homeowners understand how to calculate available home equity.
CitiBank
By virtue of rising home values or making regular mortgage payments over time, most homeowners have amassed considerable equity in their homes. This equity can be used as collateral against borrowings against it either directly through home equity loans or revolving lines of credit such as HELOCs.
Citibank provides competitive home equity loan and HELOC rates with minimal fees and offers online application to complete their full application process. However, Citi does not specify how long it takes them to receive a decision on their application.
This regional bank may only have limited offices, but they provide superior home equity loan rates. Furthermore, their interest-only HELOC and no origination or closing cost fees make their online application user-friendly; their tool provides personalized estimated rates as well as discounts for customers with Citigold or Priority accounts.
U.S. Bank
Home equity loans provide homeowners a way to take advantage of their home’s growing equity. Before choosing one lender over another to borrow against your equity, be sure to compare rates and terms before making your decision – checking ratings and reviews from various lenders is also key in making an informed decision.
Discover is best known for its credit cards, but they also provide competitive home equity loan rates with no application, origination or appraisal fees – in addition to no cash requirements at closing.
CitiBank has long been recognized for providing competitive mortgage and auto loan rates, while their home equity loans feature lower credit minimums and higher maximum DTI ratios than many other lenders. They do however provide various repayment terms, and an auto debit discount of 0.5% for payments taken directly out of your bank account. Furthermore, they boast high loan limits with an easy application process available across the 50 states.
Homeowners can transform the equity they’ve amassed in their home into cash through home equity loans, but before applying they must first ensure they meet lender approval qualifications such as having stable employment, adequate income and an excellent credit score.
Homeowners interested in qualifying for a home equity loan must possess at least 15% to 20% equity in their homes; this can be determined by subtracting their mortgage balance from its appraised value and applying this ratio against current appraised values of homes. Those with more equity may receive lower rates.
Navy Federal is a full-service credit union offering the standard array of banking products, such as checking and savings accounts (including its no-fee More Rewards account), debit cards, certificates, IRAs, and loans. Membership includes active duty military personnel, veterans, their families as well as Department of Defense civilian employees who work on DoD installations as well as contractors assigned there.
