Home equity loan rates are viable figures that are heavily considered when trying to acquire a loan. A home equity loan is an attractive and efficient option for homeowners looking to access the equity they built in their property.
Whether you want to consolidate a debt, fund a significant purchase or you are planning a major renovation, getting a home equity loan easily provides you a way to access your home’s value. Moreover, when shopping for a home equity loan, you must look for a competitive interest rate and repayment terms. Furthermore, ensure that it meets your minimal fees and needs.
What Is A Home Equity Loan?
A home equity loan is simply a secured loan that allows the borrowers to use the equity in their home as collateral. Equity is the difference between the market value of your home and the outstanding balance you see on your mortgage. Hence, the home equity loan steps in to solve the necessary, large, one-time expenses.
What Can I Use A Home Equity Loan For?
Once you are finally approved for a home equity loan, here are some of the things the loan is used for:
- Medical bills
- Debt consolidation
- Medical bills
- College tuition
- Home improvements
- Major purchases like a wedding or a new car
- Emergency expenses
- Vacations
These are some of the things the huge sum of money paid can be used to solve.
Best Picks For The Best Home Equity Loan Rates
Here are some of the top companies with good ratings for the best home equity loan rates:
- Bethpage: Best HELOC conversion loan
- Navy Federal: Best credit union loan
- Discover: Best for borrowers with little home equity
- TD Bank: Best for rate transparency
- America First Credit Union: Best for maximum equity
- U.S Bank: Best for large loans
- Third Federal Savings & Loan: Best for good credit
- Spring EQ: Best for fast funding
- Rocket Mortgage: Best for customer satisfaction
- Connexus Credit Union: Best for small loans
Working with these loan companies guarantees you the best services, rates, and customer satisfaction concerning getting an equity loan.
Current Home Equity Loan Rates
Below are some providers that offer the best and most competitive home equity loan rates on the market:
| Provider | Minimum APR | Max LTV | Average closing speed |
| Discover | 7.99% | 90% | 55 days |
| PSECU | 5.99% | 90% | 14-42 days |
| Connexus | 7.56% | 90% | 10-15 days |
| Bethpage Federal Credit Union | 6.99%(Introductory period) | 80% | 34 days |
| U.S Bank | 7.65% | 80% | Not disclosed |
| Navy Federal Credit Union | 7.34% | 100% | 45 to 55 days |
| Spring EQ | 7.83% | 95% | 21 days |
| Achieve | 10.25% | 80% | 15-18 days |
| TD Bank | 7.99% | 90% | Not disclosed |
| Fifth Third Bank | 8.55% | 70% | Not Disclosed |
| Rocket Mortgage | Not disclosed | 90% | Not disclosed |
| America First credit union | 7.24% | 100% | Not disclosed |
You can check out their interest rates, and view the ones with the best rates that work for you.
Home Equity Loans Alternatives
Acquiring a home equity loan is really helpful and comes through for most in times of dire need. However, a home equity loan might not always prove to be the best solution or it might not readily be available. In that case, here are some popular alternatives to home equity loans:
- Credit Cards: The credit cards offer credit that borrowers can conveniently use for their various purchases. Moreover, most of these credit cards provide 0% introductory annual percentage rate offers. This is a good choice for short-term borrowing.
- Personal Loans: Personal loans are simply unsecured loans that are based on the level of creditworthiness and don’t need home equity. This is a really good option for borrowers who don’t want to use their house as collateral. But, they have strong credit and need funds quickly.
- Life Insurance Loans: Another great alternative to home equity loans is a life insurance loan. This loan is a type of financing that is acquired against the cash value of a life insurance policy. What’s more, it is more suitable for policyholders with a whole-life policy with built up cash value and offers a low-interest option.
- Cash-out Refinancing: This includes refinancing a mortgage at a higher value than the outstanding balance and getting the cash difference. If you are a borrower who can secure a lower interest rate than your current mortgage, then this is the best option for you.
- Peer-to-peer lending: P2P lending easily connects borrowers with investors directly through online platforms. This is a great alternative for borrowers who have good credit and want a more personal borrowing fee with competitive interest rates.
If you want to go a different direction from the usual home equity loan rates, you can easily check out these alternatives and match the one that suits you best.
Frequently Asked Questions
Here are some frequently asked questions you can also check out:
How Long Does It Take To Get A Home Equity Loan?
It will be so much faster for you to get a home equity loan if you are organized and prepared. This involves you having all the required documents ready before you start applying. Additionally, you could close your home equity loan in a couple of weeks or maybe up to two months.
What Is A Good Interest Rate For A Home Equity Loan?
You have a good interest rate if it is lower than the current rate for a personal loan or credit card. However, rates can vary and it depends on your credit score, lender, and loan amount.
Are Home Equity Loan Rates Fixed Or Variable?
Some home equity loans have fixed interest rates, meaning your monthly payments will remain the same throughout the loan term. However, some lenders will offer variable-rate home equity loans and this means the rate may change over time.
How Do I Know I’m Getting A Good Deal On A Home Equity Loan?
To get a really good deal, you have to compare the loan terms, the interest rate, and fees from multiple lenders. Also, you must consider the total cost of the loan throughout its terms and confirm it meets your financial needs.