If you’re looking to tap into your home equity with a Best HELOC lenders, it pays to shop around. You can find lenders that offer competitive rates, flexible loan limits and low fees.
You should also consider your credit history, since it plays a big role in whether you qualify for the best rates.
1. Navy Federal Credit Union
Navy Federal is a member-owned, not-for-profit credit union that serves military personnel and their families. Its deposits are federally insured by the NCUA up to $250,000 per account. The credit union offers online and mobile banking, including bill pay, transfers, account alerts, and mobile check deposit. It also offers checking accounts that are free or offer low minimum balance requirements, such as the Free Active Duty Checking account, which pays up to $20 a month in out-of-network ATM fee rebates (requires direct deposit).
The credit union also offers a variety of savings accounts, including traditional IRA share and Roth IRA share accounts and money market accounts, which earn up to 1.5% APY. Its SaveFirst account helps customers save for specific goals by offering a customizable savings timeline and goal-based rewards.
The credit union provides mortgage lending services, including preapproval and auto loan refinancing. Its auto loans include new and used vehicle financing, as well as refinancing and registration services.
2. Flagstar Bank
Flagstar Bank offers a variety of home loan options, including HELOCs and mortgages. It also provides commercial banking services, including loans and lines of credit, as well as treasury management services.
The bank has a large footprint across Arizona, California, Florida, Indiana, Michigan, New Jersey, Ohio, and Wisconsin and operates more than 400 branches. It partners with state and local homeownership programs to provide affordable mortgages to low-income borrowers.
Its mortgage rates tend to be competitive compared with the national average, and its website makes it easy to customize your rate online. It also allows you to get prequalified for a mortgage in as little as five minutes and offers an expedited process for full applications.
The company’s checking accounts offer a variety of features, including free checking accounts, ATM reimbursements, and no overdraft fees. Some also earn interest, although most require a minimum balance to avoid monthly service fees. Flagstar Bank also offers a variety of savings account options, including health-savings accounts and child savings accounts.
3. PNC
PNC is one of the nation’s largest diversified financial services institutions. It has more than 8,600 branches and a network of more than 5,500 ATMs. Its products and services include personal banking; corporate, government and institutional banking; financial services for businesses; wealth management; and asset management.
Customers can access their online account information 24/7 through the bank’s mobile app and website. They can also speak to a live representative on weekdays from 8:00 a.m. to 9:00 p.m. ET and on weekends from 8:00 a.m. to 5:00 p.m. ET.
PNC’s accounts include the Virtual Wallet Spend3 checking account, which has smart ways to manage money and alerts you to potential overdraft fees. The bank also offers a Premiere Money Market account and other savings accounts in certain markets. Some of the bank’s accounts have monthly service fees, but customers can have these fees waived if they meet requirements. The bank’s CDs have no early withdrawal penalties and offer competitive rates.
4. Figure
Founded in 2018, Figure 1 Financial has revitalized a home equity lending market that had all but disappeared after the Great Recession. It offers a wide range of HELOC products and uses automation to underwrite loans in fewer than five days. You can borrow up to 95% of your home’s value, as long as you have enough equity and meet the lender’s credit requirements.
The company’s website has an easy-to-use tool that lets you compare rates and terms from several lenders. Pay attention to closing costs, fees and loan-to-value ratios. Also consider whether the lender has periodic rate adjustment caps or a lifetime cap on interest rates, which may help you avoid future shocks to your monthly payments.
A HELOC is an ideal choice for homeowners with ample equity who want to finance a major home improvement project or consolidate debt. You can usually qualify for a HELOC by meeting the lender’s credit requirements and providing documentation like your income and assets. Lenders typically also require a home appraisal.