Best Home Equity Loan Lenders of 2025 – A home equity loan, which is also known as a second mortgage, permits homeowners to borrow funds by making use of their home equity as collateral. Borrowers are free to make use of the loan for any purpose, but common uses include improvements, home repairs, and debt consolidation.
A home equity loan is typically a cost-effective way to borrow money at a lower interest rate than personal loans, credit cards, or borrowing from retirement funds. However, since you are making use of your home as collateral, it is crucial to ensure that you make full and timely payments. This article will show some of the best home equity loan lenders of 2025.
The Best Home Equity Lenders of 2025
The best home equity loan lenders of 2025 offer a lot of advantages, including easy application processes, low fees, high maximum loan amounts, and quick funding times. Although you may not be eligible for a loan with all of these lenders, you can make use of this list as a reference to compare offers and options. They are as follows:
TD Bank
TD Bank operates in 15 states on the Washington, D.C., and East Coasts. This bank is notable for its comprehensive rate table, which shows the actual cost of interest for specific products. However, because of its limited locations and the requirement for in-person closing, it may not be the best for those in states without physical branches. With TD Bank, you can use investment property as collateral and get loans on secondary residences.
PNC Bank
PNC Bank operates in over 50 states, offering a variety of mortgage products, including options for low to moderate-income borrowers. Their innovative tool, Home Insight, guides users through the home-buying process by helping them calculate affordable mortgage payments and search for homes. It allows loan applicants to complete the approval process online, upload required documents, and invite real estate agents to monitor application progress. Home Insight includes features for home listings, affordability analysis, and a monthly payment estimator that accounts for insurance and taxes.
Navy Federal Credit Union
Navy Federal offers some of the best membership benefits, including rate discounts and fee-free lending. Borrowers can take advantage of low fixed interest rates and borrow up to 100% of their home’s equity. However, as a credit union, Navy Federal requires membership to apply, and eligibility is limited to those with ties to the armed forces. With this credit union, you can borrow up to 100% equity, have no closing costs, have no application fees, have no origination fees, and have a large loan amount.
LoanDepot
LoanDepot is a prominent non-bank mortgage lender in the United States of America, with more than 150 branches across the country and a strong online presence. They provide various loan products, including conventional mortgages, government-backed loans, and refinances. Borrowers who make use of the lender’s Mello Smartloan technology can reduce their closing time by 17 days by digitally connecting and confirming their income, assets, and debt, which minimizes paperwork.
Bank of America
Bank of America is a large bank lender that offers mortgage and refinance loan products and also full banking services. With more than 5,000 branch locations in the United States of America, they provide customers with electronic signatures for documents, online applications, and online rate locks. Borrowers can also connect with a lending specialist online.
Spring EQ
Spring EQ is a lender that specializes in home equity loan products and permits you to borrow up to about 95% of the value of your home. This is more than what most lenders tolerate. Homeowners can convert their equity to cash in just two weeks, with an average processing time of 21 days. With Spring EQ, you will enjoy large loan amounts, more flexible DTI ratio requirements, and fast funding.
U.S. Bank
U.S. Bank provides home equity loans up to about $750,000 to $1 million for California properties. However, this loan is not available on most of the East Coast, and borrowers from states without branches are not qualified. With U.S. Bank, you will get to enjoy a long payment period, a large maximum loan amount, and a higher autopay discount.
Third Federal
Third Federal is a bank that is renowned for its “Lowest Rate Guarantee.” It has the potential to beat the lowest home equity loan rate you find or pay you $1,000. Third Federal also provides flexible options when it comes to home equity loans, like the choice between fixed and adjustable rates. However, this particular product is available in just eight states, which is fairly limiting. With Third Federal, you will get to enjoy the lowest rate guarantee program, make use of a second home as collateral, and be able to choose a fixed or adjustable rate option.
Discover
Discover’s home equity loans are obtainable for first and second liens. They have fixed interest rates, and you can borrow from the range of $35,000 to $300,000. Discover’s loan does not charge any origination, application, or appraisal fees. You also do not need to make an upfront cash payment at closing or pay mortgage taxes. You can select a repayment term between 10 and 30 years.
Regions Bank
Regions Bank covers full closing costs for credit lines of up to about $250,000 or even less. If your line of credit exceeds $250,000, Regions Bank will donate up to $500. However, if a line of credit is finished within the first 24 months of the opening date, the bank will allocate these costs to the borrower. Closing costs range from $150 to $2,000.
Final Thought
Home equity loans can be highly beneficial tools for leveraging the obtainable equity in your home. They can assist you in funding major expenses you might not otherwise be able to afford, like home improvement or educational costs. However, they do come with some drawbacks. For example, nonpayment can cause you to lose your home. Before taking out a home equity loan, ensure you compare all of your lender options.
