Although most home equity lenders let you tap up to 85% of your home’s value, some lenders may offer high-LTV home equity loans that allow you to borrow more. Use our home equity loan calculator to estimate your home equity borrowing power.
LOAN AMOUNT | APR AS LOW AS
Rates are calculated based on conditional offers for both home equity loans and home equity lines of credit with 30-year repayment periods presented to consumers nationwide by LendingTree’s network partners in the past 30 days for each loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
| MONTHLY PAYMENT |
|---|---|---|
$25,000 | 6.63% | $160.08 |
$50,000 | 6.63% | $320.16 |
$100,000 | 6.63% | $640.31 |
$150,000 | 6.50% | $948.10 |
Written by Rene Bermudez | Edited by Crissinda Ponder | Updated July 1, 2025Your credit score
The higher your credit score, the better your rate will usually be. Most lenders will allow a 620 minimum score, but some set the bar even higher at 660 or 680. Get your free credit score on LendingTree Spring today.Your DTI ratio
Your debt-to-income (DTI) ratio measures how much your monthly debt load is compared to your gross monthly income. Home equity lenders typically allow a 43% maximum DTI ratio, but the lower the ratio is, the better your rate offers will be.Your LTV ratio
Your loan-to-value (LTV) ratio compares how much you’re borrowing to your home’s value. The typical maximum LTV ratio is 85%, though lenders offer better rates if you borrow less. But some lenders offer high-LTV home equity loans with LTVs of up to 100% if you’re willing to accept a higher rate.At current rates, you would pay about $822 each month for a $100,000 home equity loan. Assuming a 20-year repayment term, you’ll end up paying $97,324 in interest over the life of that loan.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
90%
$45K
680
$8,122
Rocket Mortgage offers a home equity loan for borrowers with credit scores as low as 680, though you’ll need at least a 760 score to borrow up to a 90% LTV. Rocket also offers the option to combine your first and second mortgage with a cash-out refinance.
You’ll have the best chance of qualifying for a mortgage with Rocket Mortgage if you have a 73% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 49% of approved borrowers had a debt-to-income (DTI) ratio under 40%.
5 to 30 years
100%
$500K
$3,442
Navy Federal Credit Union is the only lender we reviewed that allows qualified homeowners to borrow up to 100% of their home’s value. Military borrowers may be eligible for extra discounts and a streamlined approval process. Customer support can be contacted online, by phone or even on X (formerly Twitter). The website also provides a step-by-step guide to help you understand the timeline of your home equity loan.
You’ll have the best chance of qualifying for a mortgage with Navy Federal if you have a 77% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 42% of approved borrowers had a debt-to-income (DTI) ratio below 40%.
5 to 30 years
$10K/$500K
0.25% for eligible borrowers
$2,483
TD bank’s website is streamlined and easy to use, with a rate tool that customizes options based on your location. Terms range from five to 30 years and rate information is simple to find. TD Bank offers borrowers a 0.25% interest rate discount for its home equity loan products if you open a TD bank checking or savings account with automatic payment deductions. An added bonus: A TD Bank home equity loan can be secured by an investment property — most home equity lenders only allow you to borrow against your primary residence.
You’ll have the best chance of qualifying for a mortgage with TD Bank if you have a 62% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 50% of approved borrowers had a debt-to-income (DTI) ratio under 40%.
5 to 20 years
0.50% for eligible borrowers
$5,092
BMO offers the highest discounts on home equity loan rates of any lender we reviewed. They offer loans with terms that range from five to 20 years. You can check rates online, browse detailed information about loan programs and even watch mortgage-related videos on their website. There’s also an online application and a guide to help you through the process.
You’ll have the best chance of qualifying for a mortgage with BMO if you have a 63% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 48% of approved borrowers had a debt-to-income (DTI) ratio below 40%.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
5 to 30 years
$500K
14 days
$2,403
Spring EQ is the only lender we reviewed that specializes exclusively in home equity loan products. You can also borrow up to 95% of your home’s value — much more than the max 85% LTV most lenders allow. Homeowners can convert equity to cash in as little as 14 days, although 21 days is the average, according to Spring EQ’s website.
You’ll have the best chance of qualifying for a mortgage with Spring EQ if you have a 70% loan-to-value (LTV) ratio or better, according to nationwide data from 2023. That year, about 45% of approved borrowers had a debt-to-income (DTI) ratio below 40%.
Bank of America offers a 0.25% discount for setting up automatic payments from a Bank of America checking or savings account. (Read our Bank of America mortgage review)
Wells Fargo gives a customer relationship discount for making automatic payments from a Wells Fargo deposit account but doesn’t disclose the exact amount. (Read our Wells Fargo mortgage review)
U.S. Bank offers a 0.50% “checking discount” to home equity customers who set up automatic payments from a U.S. Bank checking or savings account.
Key Bank offers a 0.25% interest rate reduction for home equity loan customers if you have a Relationship Account, which is available to those with a Key checking account.
Bank of America gives a discount for borrowers who enroll in its Preferred Rewards program.
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At current market rates, the monthly payment on a $50,000 home equity loan with a 20-year loan term would be about $411. Home equity loans have fixed rates, so these payments do not change over time. The total interest paid over the life of that loan would come to $57,684.
Although HELOC rates are often lower than home equity loan rates, currently the gap is tiny. In today’s market you can expect to see a rate above 8% with either option, and the difference between a HELOC and comparable home equity loan is likely to be only hundredths of a percentage point.
Consumers sometimes confuse home equity loans with home equity lines of credit (HELOCs), but they work very differently: A HELOC is a line of credit that can be used like a credit card, and — unlike home equity loans — comes with a variable interest rate.
The upshot of this is that home equity loans have stable payments, but HELOC payments are likely to change over time.
Higher second mortgage rates: You’ll pay a higher rate than you would with a HELOC or cash-out refinance.
Tougher guidelines: You may need higher scores and lower debt to qualify than you would with a cash-out refinance.
Reduced equity: You’ll lower the available equity in your home.
Another monthly payment: You’ll have two monthly house payments.
Foreclosure risk: You could lose your home if you default on your payments.
Home equity loan rates are relatively high right now, especially compared to the low rates we saw before the pandemic.
Home equity rates tend to fall when the Federal Reserve cuts the federal funds rate, which it did most recently on December 17th. This was the third and final rate cut of 2024, and home equity loan rates have trended downward since. That said, we shouldn’t expect any dramatic decreases since the Federal Reserve has announced that it will be more cautious with rate cuts in 2025.
chief consumer finance analyst |
“Any chance of the Fed cutting rates soon probably went out the window when recent reports showed a resurgence in inflation. Unfortunately, that means that home equity loan rates are going to stay relatively high, at least in the near future.” |
A cash-out refinance gives you access to cash by replacing your existing mortgage with a larger one. It’s a first mortgage, so you can get lower interest rates than you could with second mortgages like home equity loans. A cash-out refi is also easier to qualify for.
Loan costs: Cash-out refinances require you to pay closing costs, typically 2% to 6% of the loan amount. In comparison, home equity loan closing costs are usually between 2% and 5%.
Learn more about refinance rates today on LendingTree.If you prefer to leave your home equity alone, you may qualify for an unsecured personal loan. Rates on a personal loan are often higher than home equity products, but you won’t have to worry about the lender foreclosing on your home if you default on your payments.
Loan costs: Personal loans come with origination fees that typically cost 1% to 10% of your loan amount. If you shop around, you may also be able to find a suitable lender that offers personal loans with no origination fee.
See more about personal loan rates today.Although most home equity lenders let you tap up to 85% of your home’s value, some lenders may offer high-LTV home equity loans that allow you to borrow more. Use our home equity loan calculator to estimate your home equity borrowing power.
It may take two to four weeks to close on a home equity loan. You’ll usually receive your funds following a three-business-day waiting period after your closing.
Home equity loan rates are often higher than interest rates on traditional mortgages. Usually, the more you borrow, the higher your rate will be. Your credit score and loan term will also have an impact on the rate you’re offered.
Yes, it’s possible to get a home equity loan with bad credit, but you may not qualify for as much equity as you need or want. Lenders may reduce your maximum LTV ratio and charge you a significantly higher interest rate. If your scores are below 620, consider a government-backed program like an FHA cash-out refinance or VA cash-out refinance.
Don’t know your credit score? Get your free score on LendingTree Spring today..
To determine the best home equity loan lenders, we reviewed data collected from 35 lender reviews completed by the LendingTree editorial staff for 2025.
Each lender review gives a rating between zero and five stars, based on several factors including loan features and loan variety, digital application processes and the availability of product and lending information online. To be eligible for the “best of” home equity loan title, lenders must have a lender review rating of at least four stars. To be considered for our “best overall” pick, lenders must issue mortgages in at least 35 states.
We awarded extra points to lenders that:
Publish home equity loan rates online
Provide detailed information about one or several different home equity loan options
Offer a loan-to-value (LTV) ratio above the 85% industry standard
Offer fast closing options
Offer products with rate discounts or no closing costs
Our editorial team brought together the data from our lender reviews, as well as the scores awarded for home equity-specific characteristics, to find the lenders with a product mix, information base and guidelines that best serve the needs of home equity loan borrowers.
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