Spring EQ Mortgage Review 2024

Spring EQ mortgage overview

Spring EQ is a digital home lending company focused on helping current homeowners quickly tap into their home’s equity since 2016. The Pennsylvania-based lender offers home purchase and refinance loans, but specializes in home equity loans and home equity lines of credit (HELOCs). With its home financing options, borrowers can access as much as 90% of their home’s value and receive their funding within 21 days on average.

• Areas of service: Spring EQ is licensed to operate in most states, but not Alaska, Hawaii, New York, North Dakota, South Dakota or West Virginia.
• Digital service: Spring EQ specializes in digital home equity loans and mortgages. It has no physical branches.
• Headquarters: 1 West Elm St., Suite 450, Conshohocken, PA, 19428-4152
• Website: SpringEQ.com

Spring EQ rates, terms and fees

Rates

Spring EQ doesn’t disclose rate information on its website. Instead, it requires you to share your name, email, phone number and address first to view its loan options and rates.

According to data from the Federal Financial Institutions Examination Council (FFIEC), in 2023, Spring EQ charged an average interest rate of 11.36% on all home loans. It typically offered borrowers rates around 4.29 percentage points above the average prime offer rate (APOR), a benchmark indicative of the lowest APR a bank is likely to offer at that time.

Spring EQ’s rates make it one of the more expensive home lending options on the market and the most costly of the lenders LendingTree reviewed. But, unlike many other mortgage companies, Spring EQ focuses primarily on second mortgages like home equity loans and HELOCs. These typically charge higher interest rates than traditional purchase loans do.

Fees

Spring EQ doesn’t disclose its lender fees and other charges on its website for all its loan types. But home equity borrowers should expect to pay an administration fee of $799, while HELOC users face a $499 administration fee and a $99 annual maintenance fee.

Its borrowers paid an average of $2,403 in total loan costs across all loan types in 2023, the lowest amount of all the mortgage companies LendingTree reviewed. Its origination fees were on the lower side, too, costing borrowers $860 on average in 2023—less than many of its competitors. However, borrowers tended to take out smaller loans with Spring EQ than with other mortgage companies, meaning its fees may simply appear lower as a result.

What discounts does Spring EQ offer?

Spring EQ does not offer any discounts or bonuses.

What types of mortgage loans does Spring EQ offer?

Spring EQ offers a variety of home loans including:

• Home equity loans
• Home equity lines of credit
• Conventional loans

Home equity loans

Spring EQ home equity loans have flexible repayment terms that range from five to 30 years and a fixed interest rate. You’ll typically receive the funds from a home equity loan as a lump sum payment.

Home equity loan qualification requirements

• FICO score of at least 640
• Maximum loan amounts of up to 90% of your home’s value, up to $500,000
• Minimum line of credit of $25,000
• Not available to residents of Alaska, Hawaii, North Dakota, New York, South Dakota or West Virginia

Home equity lines of credit (HELOCs)

Spring EQ also offers 30-year variable-rate and fixed-rate HELOCs. These loans have a three-year draw period, meaning you can access money up to a set limit anytime you need it within those three years. Your monthly payments are then based only on the amount of your credit line you’ve used and the associated interest charges. Spring EQ allows you to make interest-only payments for the first 10 years, after which the loan becomes fully amortizing for the remaining 20-year repayment period.

HELOC qualification requirements

• FICO score of at least 660
• Maximum loan amounts of up to 90% of your home’s value, up to $500,000
• Minimum line of credit of $50,000
• Not available to residents of Alaska, Hawaii, North Dakota, New York, South Dakota, Tennessee, Texas or West Virginia

Conventional loans

Spring EQ does offer conventional mortgages to help people buy homes in addition to its main business as a home equity lender.

Cash-out refinances are also available for homeowners who wish to replace their existing mortgage and borrow a lump sum of cash simultaneously. This loan allows you to tap into some of your home equity without taking out a second mortgage.

Conventional loan qualification requirements

• Spring EQ doesn’t disclose a minimum credit score or down payment amount necessary to qualify for one of its purchase or refinance loans.
• You must not be looking to purchase or refinance a home in Alaska, Arkansas, Washington, D.C., Hawaii, Indiana, Louisiana, Montana, North Dakota, Nebraska, New Mexico, New York, Pennsylvania, South Dakota, Tennessee, Texas or West Virginia.

Spring EQ mortgage qualifications

  Don’t know your credit score? Get your free score on LendingTree Spring today.

How to boost your loan approval odds

Spring EQ doesn’t share the exact minimum requirements it uses to approve or deny applications. However, 2023 data from the FFIEC shows that approved applicants across all loan types had an average loan-to-value (LTV) ratio of 70.3%. Less than half, or 45.2%, had a debt-to-income (DTI) ratio below 40%.

Spring EQ denied about 70% of mortgage applications it received in 2023. That’s high compared to the rejection rates of other large, national mortgage lenders. But Spring EQ is a niche lender specializing in home equity products, which are typically harder to qualify for than first mortgages.

How to apply for a Spring EQ mortgage

1. Choose your loan type

You can see Spring EQ’s different home loan products and receive an estimate of your repayment rates by completing a quick form on its website. The form will ask for your name, property address, phone number and email to start. Alternatively, call Spring EQ at 1-888-978-9978 and speak with a loan officer to begin the process.

Spring EQ’s focus on home equity products means most applicants go for its home equity loans or HELOCs, although it does offer purchase loans and cash-out refinance loans. For those looking to tap into their home equity, the decision between a home equity loan, HELOC or cash-out refinance comes down to how much money you need, the repayment terms you’re comfortable with and whether you want a second mortgage.

At Spring EQ, home equity loans are fixed-rate and come with repayment terms between five and 30 years, while HELOCs are typically variable-rate 30-year loans. A cash-out refinance loan allows you to access the money in your home without needing a second mortgage.

2. Get prequalified

Once you’ve completed the online application form or spoken with a loan officer, you should receive a mortgage prequalification within a few minutes. This is Spring EQ’s estimate of how large a home loan you may qualify for and the associated terms and rates you could get. You will likely need to provide information about your income, credit and down payment or home equity to get prequalified.

3. Submit a loan application

If you like the loan amount and terms offered in your mortgage prequalification, complete your application to secure it. You’ll send Spring EQ proof of your income and assets, such as recent pay stubs, W-2s or tax returns for the last two years and bank statements covering the last two months. The lender will also check your credit score, debt-to-income ratio and down payment funds to make sure you meet its requirements. The actual terms of your approved loan may differ from those provided in the mortgage prequalification.

Documents you’ll need for prequalification or preapproval

• Identification
• Tax documents
• Bank statement
• Pay stubs
• Debt and asset statements
• Gift letters (if you’re using gifted funds)

 Find out more about how to apply for a home loan.

Is it safe to get prequalified with Spring EQ?

Yes. Spring EQ is a legitimate home loan lender that’s been in operation since 2016. Getting a mortgage prequalification from Spring EQ allows you to get an idea of the loan amount, repayment terms and rates you could qualify for. You’ll usually need to provide an estimate of your income, credit score and down payment or home equity to receive a mortgage prequalification. Lenders also typically run a soft credit check to understand your borrowing history, but this won’t impact your credit score.

Spring EQ’s customer service experience

The Spring EQ website features prominent “Start Now” and “See Your Rate” buttons that you can use to access the online application for a rate quote. It also has an applicant portal for existing customers to upload their documents and track the status of a new or existing loan. If you need assistance, you can contact Spring EQ in the following ways:

• Phone: 888-978-9978
• Email: [email protected]

Spring EQ will not be the servicer of your loan. Another company, Shellpoint Mortgage Servicing, will process your payments and provide your monthly statements. After receiving your loan funding, you should get a welcome package explaining your payment options and how to access your online account. Here’s how to reach Shellpoint Mortgage Servicing’s customer care center:

• Phone: 800-315-4757

Spring EQ’s customer support options are more limited than many other lenders. It does not have a customer support chat function on its website or an app for use on a mobile phone like its large bank competitors do. The outsourcing of its loan servicing may also confuse some customers about where to go for help.

How does Spring EQ compare to other lenders?

LendingTree’s rating	Back to our Spring EQ summary	Read our Spring EQ vs. TD Bank comparison	Read our Spring EQ vs. Bank of America comparison
Minimum credit score	640	620	Not published
Minimum down payment	Not disclosed	0% to 3.5%	0% to 3%
Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan.	4.29%	0.86%	0.41%
Loan products and programs	Conventional Home Equity HELOC	Conventional FHA VA Jumbo Home Equity HELOC	Conventional FHA VA Jumbo Home Equity
Better for:	Borrowers looking to quickly access as much as 90% of their home’s value through a home equity loan or HELOC.	Those in need of a purchase loan or who can wait a few weeks to receive their home equity loan funding.	Anyone nationwide looking for a purchase loan or HELOC with a more affordable rate.
	Get offers	Get offers	Get offers

Spring EQ vs. TD Bank

Like Spring EQ, TD Bank’s products are not available to borrowers in all states. TD Bank offers more home loan products than Spring EQ, including conventional loans, FHA loans, VA loans, jumbo loans, home equity loans and HELOCs. TD Bank charges lower rates than Spring EQ and approves more applications.

But its average LTV ratio among approved borrowers was lower than Spring EQ’s, meaning you might qualify for a larger loan with Spring EQ. It also charges an annual fee on some of its HELOC loans. With TD Bank, a home equity loan or line of credit decision can take 30 to 45 days, shorter than Spring EQ’s average processing time.

→ Read more in our full TD Bank mortgage review.

Spring EQ vs. Bank of America

Unlike Spring EQ, Bank of America offers home loan products in all states. The bank also offers a wider range of products, including conventional mortgages, FHA loans, VA loans, jumbo loans and both fixed-rate and variable-rate HELOCs (but no home equity loans). Bank of America’s typical rates tend to be lower than Spring EQ’s and it denies fewer applications. HELOCs from Bank of America come with no annual fees, unlike Spring EQ’s.

→ Read more in our full Bank of America mortgage review.

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How LendingTree rated Spring EQ Mortgage

LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.

LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Specialty lenders, like Spring EQ, are given a slightly different rating from other lenders because their expertise is in a narrower range of loan products. Lenders specializing in home equity products receive a half-point if they offer only one of the two standard home equity products (home equity lines of credit and home equity loans), and one point if they offer both. In some cases, additional information was provided by a lender representative.

Spring EQ’s scorecard:

 Publishes rates online
 Offers standard mortgage products
 Includes detailed product info online
 Shares resources about mortgage lending
 Provides an online application

 = 0 points  = 0.5 points  = 1 point