Best Home Equity Loans

Founded in 2016, Philadelphia-based Spring EQ offers loans in 41 states. The main advantages of choosing Spring EQ financing over other lenders are the ease of the application process, the speed with which your application is processed, and how quickly you receive funds.

Application Process

There are two ways to apply for a loan with Spring EQ. 

The first is to pick up the phone and call a Spring loan officer. Company representatives can advise you on your application and guide you through it. You can even fill out and submit your application at a Spring office if you prefer.

The quicker way is to apply through Spring EQ’s website. 

The company requires some information before getting a quote: your employment history, mortgage balance, property information, home value, creditworthiness, and other basic details. After you provide the info, Spring will conduct a soft credit check, and you’ll receive your rates. 

You’ll need to talk with a Spring EQ loan officer to finish the application process if you decide to continue.

After you finish the application, you usually get approved the same day. You’ll get access to funds in as little as 21 days.

Terms and Fees

The company doesn't advertise its APR ranges, but they are considered to be highly competitive on the market today.

Spring EQ charges a $799 administration fee for processing your loan, while HELOC borrowers are also charged a $99 annual maintenance fee. You’re also responsible for third-party costs like credit checks and notary fees. Loans over $175,000 require an in-home appraisal, while those over $250,000 require title insurance, which the borrower pays for.

Spring EQ only offers loans, not lines of credit. The smallest amount you can borrow is $25,000, while the largest amount is $500,000. The repayment period ranges from five to 30 years.

Eligibility Requirements

Except for a minimum credit score requirement of 640, Spring EQ does not disclose the qualification criteria.

Final Thoughts

Spring EQ offers competitive interest rates and a quick, painless online application process.

Discover is a major credit card issuer - and one of America’s biggest players on the lending market. Launched in 1985 as a subsidiary of Sears, Discover became an independent company in 2007. Discover extends borrowers some of the market’s best terms, but it does not offer HELOCs.

Application Process

Discover relies on online applications since it has only one physical office in Greenwood, Delaware. Discover products are available in 48 states (Iowa and Maryland are excluded), so applying online is the only way to secure a loan.

This is not a negative. Online applications can be much quicker and easier than applying in person. Our testing showed us that Discover is completely transparent, disclosing all the rates, terms, and fees on public loan pages. There’s no need to worry about hidden charges with a Discover loan.

The process for applying online and using the Discover loan calculator is straightforward. Before you can get your rate, you must provide the sort of information required by most lenders: property information, mortgage balance, Social Security number, and all that jazz.

After getting a quote, you can hit the Apply button and provide some basic info, and Discover will provide loan options for you. The company does not divulge how long it takes for applications to be approved or how long you must wait before funds are disbursed.

Terms and Fees

Discover’s lowest APR rate, 8.00%%, while the upper limit is 12.99%. Discover offers only fixed-rate loans, so if you’re looking for inflation-indexed variable rates, you should look further. 

Discover does not charge any application, origination, or appraisal fees. Nor does Discover require a cash payment at closing. There’s no fee for paying off the loan early, at least not after the first 36 months.

Loans range from $35,000 to $300,000, and the repayment period is 10 to 30 years. The allowed combined loan-to-value ratio is a generous 90%, compared to the industry standard of 80%.

Eligibility Requirements

To qualify for a loan, homeowners must meet a fairly standard set of prerequisites:

• Credit score: 680 or higher
• Debt-to-income ratio: 43% or lower

Final Thoughts

Discover is worth checking out. The lack of fees and processing charges is a big plus. The minimum loan amount of $35,000 might be too high for some borrowers.

Northpointe Bank has been operating since 1999 from its headquarters in Grand Rapids, Michigan. In addition to the usual cocktail of banking services, Northpointe offers a variety of mortgage options, loans, and home equity financing.

One major disadvantage of this lender is its lack of transparency: It discloses little information about its rates before you apply. 

Application Process

Unlike other lenders, Northpointe Bank does not allow you to complete your application online. You can prequalify online, however. Just fill out some basic information on the Northpointe website: name, contact data, loan amount, FICO score, and so on. This starts the ball rolling. 

You won’t get a quote right away. Instead, you’ll be contacted by a loan officer via phone, email, or SMS.

Once you have contacted the bank’s loan agent and provided more information, you’ll need to gather more required documents and send them to the bank’s offices. Only then will the bank prepare the final loan documentation. Approval time and waiting time for funds disbursement can vary.

Terms and Fees

Northpointe Bank offers home equity loans and HELOCs but does not disclose its rates until you are negotiating terms. The bank provides variable and fixed rates, which many homeowners will surely appreciate. The bank does disclose the fees associated with securing a loan:

• Application fee: $400
• Appraisal fee: $300 to $400
• Origination fee: 1% of the loan
• Survey fee
• Title fee
• Recording fee
• Escrow fee

These are not the lowest rates and fees we have seen - but remember that most lenders allow borrowers to negotiate fee reductions or waivers.

Eligibility Requirements

Northpointe Bank does not stray from industry standards when it comes to qualifying for a loan. You must have a credit score of 620 or higher and a debt-to-income ratio of 43% or lower. 

Final Thoughts

Even with its lack of transparency, Northpointe Bank gathers mostly positive reviews online, and its requirements are relatively easy to meet. It’s a pity you can’t complete the loan application process online.

Launched in 2018, the San Francisco-based company uses AI, blockchain technology, and advanced analytics to support a smooth, fully digital loan application process.

Application Process

Figure’s application process is undoubtedly its pride and joy - and for a good reason. Applications are completed entirely online at Figure’s website. 

The process is quick and easy. You start by typing basic information - the personal details most lenders use in the prequalification process. Figure will respond with an offer you can compare with deals you’ve received as proposals from other lenders.

If you’re happy with the interest rates that Figure has proposed, you can proceed to the next stage: information verification and documentation. Figure has automated the entire verification process. You need to specify what banks you use, link your accounts, and add more information. 

Figure’s software will quickly and automatically verify everything necessary to approve a loan. It performs these checks over encrypted data lines to protect your personal and financial information.

Once you’ve accepted the offered loan, the only barrier between you and financing is signing the documents. Figure’s got you covered here as well. In most cases, Figure can connect you with a digital notary so you can sign the documents while sitting at your home PC or laptop.

Figure says the approval process takes five minutes, and you can receive funds in as little as five days.

Terms and Fees

Figure offers only fixed-rate HELOC financing; home equity loans are not available.

Figure charges no prepayment penalty or checks processing fees. Since Figure uses an AI-based automated valuation model to appraise your house, there are no appraisal fees either. Figure’s advanced technology can save you hundreds of dollars.

The elimination of these fees gives Figure a well-earned place on this list of the industry’s top lenders.

Figure does charge one major fee, however. The company requires that you withdraw the full amount of your HELOC immediately and pay 4.99% as an origination fee. The smallest loan you can get is $15,000, while the largest is $250,000. The repayment period ranges from five to 30 years.

Availability of Figure HELOCs: 49 states and the District of Columbia.

Eligibility Requirements

Eligibility requirements are quite similar to those of other lenders:

• Minimum credit score requirements: 640
• Debt-to-income ratio: 43% or less
• No bankruptcies in the last seven years
• No recent mortgage delinquencies
• No accounts in collections
• No foreclosures in the previous five years

Final Thoughts

Figure offers highly competitive rates and excellent terms for HELOCs. There are only two major disadvantages - Figure HELOCs are not available in every state, and the origination fee can be pretty costly.

Founded way back in 1863, U.S. Bank is one of the oldest banks in the States. Today, it’s the fifth-largest bank in the United States. Besides home equity loans, the bank also offers HELOCs, with loans going up to $750,000. U.S. Bank’s loans are available in 40 states.

Application Process

You can apply for a U.S. Bank home equity loan or HELOC by going to one of the lender’s many branch locations, as well as over the phone or online.

While most of us prefer online applications, we like to see lenders offer a variety of choices. After all, not all borrowers are tech-savvy enough to apply online.

The online application process can be done by signing in to your U.S. Bank checking account or by creating a guest account. Then you’ll have to provide the same kind of information requested by most of the other lenders.

This includes your name, marital status, and address, as well as information about your property, mortgages, income, and so on.

The application process itself is fairly quick and user-friendly, with plenty of short explainers on the way.

After you finish the online application, U.S. Bank requires you to send the requested documents and then head to a branch to seal the deal. The bank does not divulge how long you’ll have to wait before the loan is processed and approved.

Terms and Fees

U.S. Bank offers both home equity loans and HELOCs. This is commendable, as many lenders stick to only one. For home equity loans, the APR starts at 7.65%.

This is fairly competitive, but do note that this is the lowest rate you can get, so it’s reserved for those with great credit scores and those subscribed to Autopay. The repayment period allows flexibility since it can be as long as 30 years.

HELOCs come with a variable APR range of between 7.95% to 11.60%. The draw period can last up to 10 years.

The smallest loan you can get is $25,000, while the biggest is $750,000 for most states. However, if you live in California, you can get up to $1 million.

For home equity loans, comparisons of fees play a large role in determining which lender offers the best terms. U.S. Bank charges an early termination fee of 1% (up to $500) on home equity loans if you close the account within three years or earlier.

The closing costs are waived if your DTI ratio is 43% or less. Paying a loan origination fee can also waive these costs.

HELOCs incur an annual fee of $90 after the first year. You can avoid the fee if you have a Platinum Checking Package with the bank.

Eligibility Requirements

U.S Bank does not disclose its eligibility requirements, but it seems evident from the lender’s rates that the best ones are reserved for those with credit scores of 730+ and a DTI ratio of 43% or less.

Final Thoughts

U.S. Bank represents a more-than-solid choice for getting home equity financing. It offers competitive loan rates and offers borrowers multiple ways to waive fees or get discounts.

Regions Bank is another lender on our list that primarily does business in the South and the Midwest. This lender currently services 15 states and offers home equity loans and HELOCs.

While its state coverage is limited, Regions offers competitive rates and allows lenders to take out loans as small as $10,000.

Application Process

Regions Bank allows borrowers to apply for home equity loans and HELOCs. The lender’s portal is robust and easy to use, carefully taking you through each necessary step. You can expect to provide the standard information required for most loans: personal details, SSN, income, property, and employment information.

The application process takes a bit longer than we’ve seen with other lenders. However, it prequalifies you and prepares everything for the loan finalization.

You just need to wait for a loan officer to get back to you, after which you just send the necessary documents, and you’re ready to get your loan. The final step does require you to go to a branch to sign the documents for the loan.

Terms and Fees

For home equity loans, the APR range is 6.75% to 14.125%, which is in line with industry standards. Regarding HELOCs, the current variable APR ranges from 8.25% to 15.125%. 

What’s great about getting HELOCs from Region is that you’ll be paying a low introductory APR of only 4.99% for the first six months. On top of these low rates, the maximum LTV ratio (loan-to-value ratio) is fairly high; it stands at 89%, which is above the industry standard of 80% for HELOCs.

The repayment terms are seven, 10, 15, and 20 years. HELOCs come with a 30-year repayment period (10-year draw, 20-year repayment). Regions Bank offers loans starting as low as $10,000 and going up to $250,000 (equity loan) and $500,000 (HELOC).

As for fees, Regions covers the closing costs for loans of $250K or less and goes up to $500 for bigger loans. If your line of credit is terminated within two years or less, you’ll have to cover these costs.

Eligibility Requirements

While the lender doesn't share it's minimum credit score requirements, you need at least $10,000 in equity to apply. That’s very similar to what we’ve seen with other lenders.

Final Thoughts

Regions Bank is an excellent choice for lenders of all stripes with competitive rates for home equity products, no closing fees, and many other great promotions. The only downside is that this lender only services 15 states.

Citi is one of the largest and oldest financial institutions in the world. Founded back in 1812, it has since spread its network all over the US. Nowadays, it services all states besides Alaska. Citi offers HELOCs at reasonably low rates, without application and closing fees.

Application Process

Citi offers a very streamlined online application experience. The online form allows you to quickly fill out the application. The interface for the application form itself is a bit outdated, but that won’t inhibit borrowers in any way.

The information required in the application includes basic details, information about your property and mortgage, what kind of loan you want, and so on.

It only takes a minute or two to complete the full application, and then you’ll just need to wait for a Citibank officer to contact you. At that point, you’ll send the required documents and finalize the deal.

You can also see the best rate you can get and apply for a loan over the phone by talking to one of Citi’s loan officers. Additionally, you can always check the status of your application online. Citibank does not state how long the application process lasts.

Terms and Fees

With HELOCs, you can get up to $1 million in funding, at a variable rate of 9.5%.

HELOCs have a 30-year repayment plan: 10 years for the drawing period and 20 for repayment.

Citi also offers various rate discounts if you opt for fixed monthly payments, for example. Additionally, for HELOCs, you can make interest-only payments during the drawing phase.

Eligibility Requirements

You’ll need a credit score near the 700 mark to get the lowest rates. The precise eligibility requirements are not revealed, but we can safely assume they also include a solid debt-to-income ratio.

Final Thoughts

While Citi does not separate itself from the competition in any obvious way, its offer is solid across the board, with a wide range of discounts and one of the highest maximum loan amounts on the market today.