A home equity loan is a second mortgage taken out on your home. It does not affect your existing mortgage or replace it. This is a separate loan taken out against the equity you have built up in your home. The equity is the difference between the value of your home and the money you owe on your original mortgage. So if you bought your house with a $100,000 mortgage and your home is not worth $150,000, you have built up $50,000 of equity in your home. Home equity loans, whether they are loans or lines of credit (HELOCs), generally have shorter terms as compared to your original home loan. For example, if your original mortgage is payable over a period of 30 years, any home equity loan would be payable over a shorter period (usually 5-15 years). Of course, the shorter your repayment period, the higher your monthly repayments will be. On the other hand, a longer payback period means lower monthly repayments but a larger overall amount to be paid due to the ongoing interest payments.


We strongly recommend only considering a home equity loan if the interest rates on offer are equal to or lower than your primary home loan. If it is higher than what you are currently paying we suggest talking to your original lender about borrowing from them. If you decide to get a home equity loan, your lender will calculate the value of your home and the amount of equity available to borrow against. They will decide how much they are comfortable lending to you and make an offer on that basis. The equity of your home will then serve as the collateral, reducing the risk to the lender. Home equity loans have a one-time lump sum payment which you will pay over a set time frame, with fixed interest rates, and a set repayment to be made each month. To help you in your search for a home equity loan, here are 7 top lenders to get a quote from.



Refinancecalculator.com can get you hundreds of quotes from various lenders available in your state, through their website. You can then look at the different options and select the best rates and lowest monthly payments. You can also get loans for up to 30 years, with no SSN required, and even accepts those with fair credit.


You can pay for college tuition or buy another property, and even get rid of high-interest debt from credit cards from them. They have an A+ rating with the BBB and are rated # 1 in client satisfaction by JD Power for the past six years in a row.


Rocket Mortgage by Quicken Loans allows you to file for your loans online with their easy to use website.


Rate Marketplace, an equal housing opportunity lender, offers multiple types of home equity loans from a selection of their extensive network of lenders to choose from. You can get up to 5 free quotes, and they also have easy eligibility requirements.


Loan Depot allows you to loan from $25,000 to $25,000 with flexible terms of up to 5 years. Their loans won’t affect your primary mortgage’s rate, and they are also an equal housing lender. They are rated A+ by the BBB and can offer you closing in just a few days, with cash out of up to 90% loan to value.


SoFi turns your home equity into cash and can help you with high-interest debt consolidation, renovations for your home, and more. You can get up to 65% LTV for whatever purpose you need. Student debts get up to 80% LTV. You can close in less than a month, there are no fees, and the two-minute pre-qualification check will have no impact on your credit.


The lending tree is also an A+ rated company by the BBB with rates as low as 3.84% APR. You can make home improvements that can further add value to your home, get cash for a large purchase, consolidate debt, and even pay for college. You can find a lot of options from multiple lenders and banks, so you can decide which home equity loan is the best for you.



Disclaimer: Our service is not intended to be, nor should it be construed as financial advice. We help our readers make informed decisions via impartial information and guides. Where appropriate, we may introduce partner companies who can provide services relating to financial products.