How to Find the Best Home Equity Loans
Home equity loans allow homeowners to tap into their built-up equity and use it for a wide range of expenses. They can be a good option for education, renovations, debt consolidation and other major purchases.
The best way to find a loan that works for you is to shop around and compare lenders’ rates and fees. It’s also important to consider how much equity you have in your home and whether you can afford to pay interest payments on the full amount of your loan.
Truist
Truist offers several home equity products, including a home equity line of credit (HELOC) and HELOC loans. Both of these options are great for homeowners who have built up a substantial amount of equity in their homes and want to use that money to pay for a variety of expenses.
Like other banks, Truist looks at a number of factors when determining your eligibility for a home equity loan or HELOC. These include your credit score, debt-to-income ratio and assets and liabilities, among others. The lender will also ask you for a recent appraisal, employment verification and information on your debts.
You can get a HELOC with Truist in most states, and you have a few choices when it comes to your repayment terms. You can choose between a variable rate or a fixed rate with a 10-, 15- or 30-year term. The bank also allows you to convert a portion or all of your balance to a fixed rate up to five times, with a $15 setup fee.
The loan amount on a Truist HELOC can be anywhere from $2,500 to $500,000. You can apply online or visit one of the company’s 2,500 branch locations. The bank’s website has a helpful HELOC calculator, which can help you determine your monthly payment based on the interest rate and your balance.
If you’re looking for a home equity loan, it’s best to compare more than one lender before making your final decision. Some lenders offer more competitive rates than Truist, and some have lower fees and better customer service.
In addition to HELOCs, Truist also offers a variety of other mortgages and home loans. These include a low down payment mortgage option and an FHA loan for veterans or their surviving spouses.
To qualify for a Truist HELOC, you must have enough equity in your home to meet the lender’s minimum requirements and a credit score of at least 740. If you don’t have that much equity, you may need to put down a larger down payment.
Truist offers a variable-rate HELOC with a 10-year draw period and a 20-year repayment term. You can also convert some or all of your HELOC to a fixed rate up to five times. This option can be useful if you think interest rates will rise in the future. It will make your monthly payments more manageable. You can also choose to pay off your balance in full within three years of opening your HELOC. However, prepayment penalties on a Truist HELOC may apply.
Discover
Home equity loans are a good option for homeowners who need to borrow money to pay for home improvement or debt consolidation. They can also be used to finance large expenses, such as weddings or vacations. Depending on your credit and debt-to-income ratio, you may be able to deduct interest on the loan from your income tax return.
Discover is one of the best home equity lenders, offering low rates and relatively low fees. However, it’s a good idea to compare programs and pricing before applying for a home equity loan.
The minimum credit score requirement for a Discover home equity loan is 620, though it can be higher for some applicants with a stronger credit history and more equity in their homes. The lender allows a maximum loan-to-value (LTV) ratio of 80% to 90%, which means that the balance on your current mortgage plus any home equity borrowing can total up to 90% of your home’s appraised value.
Those with lower credit scores can still qualify for a Discover home equity loan, although they’ll likely have to pay higher interest rates. The lender offers 10-, 15- and 30-year terms on home equity loans.
You can apply for a home equity loan with Discover online or over the phone. You don’t need to visit a physical branch to complete the application, but you can get support from customer service agents weekdays and weekends.
The lender’s website features a calculator that helps you determine how much you can borrow. It also includes a tool that lets you calculate monthly payments.
There are no origination fees, appraisal fees or closing costs with a Discover home equity loan. In addition, the lender doesn’t require a cash deposit at closing.
Its fixed-interest rate is also competitive. This is a plus, especially considering that the Federal Reserve is likely to raise interest rates in the near future.
You can borrow between $35,000 and $300,000. There is a high minimum loan amount, which could be more than you need.
Discover is a top-rated lender that offers a variety of loan products, including home equity loans and mortgage refinancing. The company’s customer service is outstanding, with bankers available over the phone and online to answer your questions. Its mobile app is convenient and easy to use, too.
Fifth Third Bank
When looking for the best home equity loans, it’s important to choose a lender that can offer you a loan amount that’s right for your needs. For example, if you’re looking to buy a new car or fix up your home, you need a loan that can cover these expenses.
Fifth Third Bank is a large bank with a variety of financial products and services. It offers checking and savings accounts, money market accounts and CDs with competitive rates and terms. It also has low minimum deposits for its CDs.
The bank is headquartered in Cincinnati, Ohio and operates branches throughout 11 states. Its customers can access more than 50,000 fee-free ATMs nationwide.
While the lender is known for its mortgages, it also offers a variety of other financial services, including personal and business banking, investment and wealth planning. Its mortgage options include traditional fixed-rate, adjustable rate and jumbo loans, and it has a full line of refinance products.
A home equity line of credit (HELOC) from Fifth Third allows you to borrow up to $100,000 in addition to your existing home equity. The bank also has a variable-rate HELOC with a low introductory interest rate of 2.99%. However, your rate can change if you miss a payment or if you fail to pay your balance in full within six months.
In order to open a HELOC with Fifth Third, you’ll need a primary residence in one of the 11 states where the bank operates and an eligible Fifth Third checking or savings account. You’ll also need to have a credit score of at least mid-600s and a debt-to-income ratio of no more than 43 percent.
Unlike many other home equity lenders, Fifth Third does not offer an online application process for its home equity lines of credit. To apply, you’ll need to call customer service or visit a local branch.
The company’s online banking portal lets you check your account balance and make transfers between Fifth Third accounts. The bank’s auto-pay feature allows you to set up automatic payments from your Fifth Third checking or savings account, and it also allows you to enroll in overdraft protection for free. You can also set up an alert for any changes in your bank account and get help with questions about your credit report or financial status.
TD Bank
Home equity loans and HELOCs are a popular way to tap into your home’s value. They allow you to take out a lump sum of cash and pay off your current mortgage in one go.
TD Bank offers home equity loan and HELOC products to residents in 15 states and Washington, DC. The lender’s rates and terms are competitive, and its HELOC options include fixed and variable interest rates.
The lender also offers a wide variety of loan amounts, which can be useful for borrowers who need larger funds to cover larger expenses or to finance an investment property. The company’s website also includes “loan guides” that provide clear requirements and information, making it easy to identify eligibility and affordability.
To start the application process, TD Bank requires some basic personal information, including your name, address, birth date and phone number. It then asks you to explain your income and expenses. Afterward, it’ll assess your credit history and determine how much you can borrow.
If you’re eligible for a loan, you’ll sign a contract that details your monthly payments, the length of the loan and other terms. Once you’ve signed the document, TD Bank will send your loan funds to your bank account and start collecting repayments.
For most TD Bank products, you need to have a good credit score. Typically, this is a FICO score of 660 or better, but it’s possible for people with low or no credit scores to qualify.
TD Bank also has an option for a HELOC that lets you choose your payment date. This is a great option for borrowers who might have to change their payday in the middle of the term, as it’s easier to make payments on a flexible schedule.
TD Bank offers home equity loans and HELOCs for a variety of purposes, including to purchase a new car or to fund an unexpected medical bill. Its loan amounts range from $25,000 to $5 million, and its rates are competitive, especially if you have a strong credit score.
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