Home Equity Loan Rates for March 2024

Choose a property type to get your lowest home equity rates today

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Current Home Equity Loan Rates

LOAN AMOUNT

APR AS LOW AS

$25,000

6.63%

$50,000

6.63%

$100,000

6.88%

$150,000

6.88%

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Written by Rene Bermudez | Edited by Crissinda Ponder | Updated February 27, 2024

How to get the best home equity loan rates

There are many home equity loan lenders to choose from, and each of them set their own approval guidelines. The guidelines are usually a bit more strict than traditional mortgages, so you should strive to:

  1. Boost your credit score. The lowest score that most home equity lenders accept is 620, but others may set their minimums at 660 to 680. The higher your credit score, the better your home equity loan interest rate will be.
  2. Reduce your DTI ratio. Lenders divide your total debt, including your new home equity loan, by your pretax income to find your debt-to-income (DTI) ratio. The DTI limit is usually 43%, but a lower DTI could snag you a better rate.
  3. Borrow less of your home’s value. The typical maximum loan-to-value (LTV) ratio is 85%, but lenders offer better rates if you borrow a smaller amount, which is less of your home’s value.
  4. Avoid second home or investment property home equity loans. The best home equity loan rates go to homeowners that live in their home as a primary residence.
  5. Shop around. Home equity lenders may offer special incentives to earn your business, like discounted rates if you have other deposit or credit accounts with them. Compare the costs and rates from at least three lenders to ensure you’re getting the best deal. You can start by reviewing our choices for the best home equity lenders below.

 Can I get a home equity loan with bad credit?

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.

The best home equity lenders of 2024

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderLendingTree ratingAvailable featuresLender review


Best for low credit scores

680 minimum credit score

90% LTV with higher score

$45K minimum draw

Read our review

Navy Federal Credit Union


Best for high LTV ratios

5- to 30-year terms

No-closing-cost options

100% LTV for qualified borrowers

Read our review

TD Bank


Best for online experience

5- to 30-year terms

$10K to $500K loan amounts

0.25% rate discount for eligible borrowers

Read our review


Best for rate and closing cost discounts

5- to 30-year terms

0.50% rate discount for eligible borrowers

No upfront fees

Read our review


Best for fast closings

5- to 30-year terms

$500K maximum loan amount

14-day closings possible

Read our review

Best home equity loan for low credit scores: Rocket Mortgage

Available home equity loan termsHome equity loan featuresLendingTree rating
  • Not disclosed on the Rocket Mortgage website
  • 680 minimum score
  • 90% LTV possible with higher score
5 stars

Read review

Navy Federal Credit Union

Available home equity loan termsHome equity loan featuresLendingTree rating
  • 5 years
  • 10 years
  • 15 years
  • 20 years
  • Borrow up to 100% LTV
  • Loan amounts up to $500K
  • No closing costs
4.5 stars

Read review

Best home equity loan for online experience: TD Bank

TD Bank

Available home equity loan termsHome equity loan featuresLendingTree rating
  • 5 years
  • 10 years
  • 15 years
  • 20 years
  • 30 years
  • 0.25% discount for eligible borrowers
  • Finance primary homes and investment properties
4 stars

Read review

Best home equity loan for rate and closing cost discounts: BMO Harris

Available home equity loan termsSpecial home equity loan featuresLendingTree rating
  • 5 years
  • 10 years
  • 15 years
  • 20 years
  • Rate discounts up to 0.50% for qualified borrowers
  • No closing costs
4 stars

Read review

Best home equity loan for fast closings: Spring EQ

Available home equity loan termsHome equity loan featuresLendingTree rating
  • 5- to 30-year terms
  • $500K maximum loan amount
  • 14-day closings possible
  • Up to 95% LTV for qualified borrowers
4 stars

Read review
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What is a home equity loan?

A home equity loan is a second mortgage that converts your home equity into cash. Home equity is the difference between how much your home is worth and the amount you owe on your outstanding mortgage balance.

When you get a home equity loan, you receive the money all at once and make fixed monthly payments to pay it off. You can use the cash from a home equity loan to make home improvements, pay down high-interest debt or cover any other expense you choose.

 See how much you could borrow with a home equity loan calculator.

  Is a home equity loan tax deductible?

Yes, if the funds from the home equity loan are used for home improvements, you can deduct the interest from your taxable income. Learn more about how to get your home equity loan tax deductible.

How do home equity loan interest rates work?

Most home equity loans come with fixed interest rates, which means that you can enjoy consistent payments that won’t change over time. Because a home equity loan is paid out to you all at once, the amount of money you’re paying interest on never changes.

Home equity loan requirements

To get a home equity loan, you’ll need to meet the following home equity loan requirements:

  • DTI ratio: 43% maximum
  • Credit score: 620 minimum
  • LTV ratio: 85% maximum

*This is the standard LTV ratio maximum. However, some home equity lenders let you borrow up to 100% of your home’s value.

How are home equity loan rates determined?

  1. Your credit score. The lower 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.
  2. Your debt-to-income (DTI) ratio. Your 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.
  3. Your loan-to-value (LTV) ratio. Your LTV ratio compares how much you’re borrowing to your home’s value. Lenders see a lower LTV ratio as less risky so they can offer lower rates. Most lenders limit you to a maximum LTV of 85%, but there are some lenders who offer high-LTV home equity loans with LTVs of up to 100%.

Pros and cons of home equity loan rates

ProsCons

  Lower interest rates: You’ll pay lower interest rates than you would with credit cards or personal loans.

  Fixed rates: Your payment will be the same each month because your rate doesn't change.

  Tax implications: You may be able to deduct home equity loan interest from your tax bill.

  One-time closing costs: Your closing costs will typically be on par with HELOC closing costs, but you won’t have any ongoing membership or inactivity fees.

  Very flexible: You can use the money for any purpose.

  Second mortgage rates: You’ll pay a higher rate than 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.

  Collateral requirement: You could lose your home if you default on your payments.

  Learn more about home equity loan pros and cons.

Think a home equity loan is right for you?  Compare Top Lenders and Rates

How do I calculate my home equity loan amount?

The easiest way to figure out how much you can borrow with a home equity loan is to let our home equity loan calculator do the math for you. You’ll just need three pieces of information:

  1. An estimate of your home’s value
  2. Your current mortgage balance
  3. Your current credit score

Note: The results are based on a maximum 85% LTV ratio.

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What can I use a home equity loan for?

You can use home equity loans for just about anything, including:

 Ready to tap your home equity?  Compare Free Rates Offers

Alternatives to home equity loans: Which has the best rates?

Home equity loan rates vs. HELOC rates

HELOC rates are usually slightly lower than home equity loan interest rates.

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 they almost always come with variable rates.

A HELOC is best if:A home equity loan is best if:
  • You're OK with a variable rate
  • You don't mind having payments that change over time
  • You want a competitive interest rate for borrowing cash
  • You want ongoing access to funds, rather than a one-time lump sum
  • You want to pay interest only on the amount you use
  • You want the flexibility to access funds, pay them off and reuse that portion of your credit
  • You want a fixed interest rate
  • You want predictable monthly payments that stay the same
  • You want money in one lump sum
  • You need all the money immediately
  • You understand that you'll have to pay interest on the full amount, whether you use all of the funds or not

 See current HELOC rates and top lenders today.

Home equity loan rates vs. cash-out refinance rates

Cash-out refinance rates are usually lower than home equity loan interest rates.

A cash-out refinance gives you access to cash by replacing your existing mortgage with a larger one. Because it’s a first mortgage, you can access that cash at lower interest rates than you could with second mortgages, like HELOCs and home equity loans. A cash-out refi also has more lenient requirements overall than a home equity loan, making it easier to qualify for. For example, you could get an FHA cash-out refinance with a credit score as low as 500.

A home equity loan is best if:A cash-out refinance is best if:
  • You want to leave your first mortgage balance alone
  • You want to save money on closing costs
  • You can get a better interest rate on a new mortgage
  • Your credit scores are too low for a home equity loan

 Learn about cash-out refinance options.

Home equity loan rates vs. personal loan rates

Personal loan rates are usually higher than home equity loan interest rates.

If you prefer to leave your home equity alone, you may qualify for an unsecured personal loan. The rates 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.

A home equity loan is best if:A personal loan is best if:
  • You want a lower rate
  • You want a longer repayment term
  • You want a lower payment
  • You need a higher loan amount
  • You don’t want to use your home as collateral
  • You don’t have enough equity to take out a home equity loan
  • You need the money faster
  • You need a lower loan amount

See top lender personal loan rates today.

Frequently asked questions

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 also have an impact on the rate you’re offered.

Yes, a home equity loan is often called a second mortgage, since it’s usually attached to a home already secured by a first mortgage. If you default on the loans secured by the home and go into foreclosure, the home equity loan will be second in line to be repaid.

How we chose our picks for the best home equity loan lenders

To determine the best home equity loan lenders, we reviewed data collected from 35 lender reviews completed by the LendingTree editorial staff in 2023.

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.

 Back to lender summary