Owning a home of your own has some advantages such as building equity. Your home equity determines the worth of your property, and the worth is been compared with how much you owe on any mortgage for it.
You build equity over a period of time by paying down your home loan, your Home Equity Lenders are capable of covering your huge expenses such as payment of college tuition, home improvements, home repairs, it can also enable you to purchase another home or unify high-interest debt.
Meaning Of Home Equity
Home equity is the market value of a homeowner’s unencumbered interest in their real property, that is, the difference between the home’s fair market value and the outstanding balance of all liens on the property.
Top Home Equity Lenders And Their Rates
- Bank Of America
- LoanDepot
- Quicken Loans
- Alliant Credit Union
- LendingTree
- Discover
- FIGURE
Bank Of America Equity Lenders
Bank of America is one of the major financial institutions serving homeowners nationwide, Bank of America has good customer satisfaction ratings when it comes to home equity. The bank has an A+ Better Business Bureau rating and a J.D. Power rating of four, which is better than many other lenders offer.
Rates
- Mortgage types offered: Conventional, VA FHA, refinance, home equity
- Minimum FICO score: 620
- Maximum loan-to-value ratio: 100%
- Maximum debt-to-income ratio: 55%
- Loan amounts: Up to $5,000,000
- Total closing costs: It varies
- J.D. Power overall satisfaction rating: Four out of five
LoanDepot Equity Lender
LoanDepot is a mortgage company that was established in 2010, and it has financed more than $70 billion in mortgages. loan depot offers FHA, conventional and other mortgage options. With loan depot you need not worry about your credit score when applying for a loan, you can qualify for a loan with a FICO credit score as low as 580.
Rates
- Mortgage types offered: Conventional, Jumbo, ARM, VA, FHA, home equity
- Minimum FICO credit score: 580
- Maximum debt-to-income ratio: Not disclosed
- Maximum combined loan-to-value ratio: 90%
- J.D. Power satisfaction rating: Four out of five
Quicken Loan equity Lender
Quicken Loans is a financial lending company that specializes in Equity loans and online mortgage refinance. They have their headquarters based in Michigan and it was founded in 1985, Quicken Loans is one of the largest online lenders in the United States. The company offers well flexible loan terms.
Rates
- Mortgage types offered: Cash-out Refinance
- Minimum FICO credit score: 620
- Lender type: Online Lenders
- Maximum combined loan-to-value ratio: 3.99%
- J.D. Power satisfaction rating: no rating
Alliant Credit Union
Alliant Credit Union is a member-owned financial cooperative headquartered in Chicago, Illinois. They provide exclusive benefits to employees, retirees, and members of qualifying organizations and their family members, Alliant is the eighth largest credit union by asset size in the United States with $9.7 billion USD in assets and serves over 385,000 members worldwide.
Rates
- Minimum FICO credit score: 620
- Maximum debt-to-income ratio: 90% LTV, 10% equity
- Loan amounts: Up to $2,500,000
- Total closing costs: $995 to $1795, depending on the loan product
- J.D. Power overall satisfaction rating: Not rated
LendingTree
The LendingTree is an online lending platform sum together and connects potential customers with various lenders who compete for their business. LendingTree offers a range of financial products that you make a choice from, including home equity loans and home equity lines of credit (HELOCs). LendingTree has a grade of A- with the BBB.
Rates
- Rates as low as 5.140% APR (30 year HELOC)
- Make your home improvements that add value to your home
- Get cash for a large purchase
- Pay for college
- Consolidate debt
- When banks compete, you win!
Discover Lender
Discover home equity loan has been in the business of offering home equity loans since 2013. Borrowers will pay no application, origination or appraisal fees and have no cash due at closing.
Rates
- Minimum FICO credit score: 620
- Maximum debt-to-income ratio: 43%
- Maximum combined loan-to-value ratio: 70% to 95%
- J.D. Power satisfaction rating: Not rated
Figure Lender
The Figure Lender is one of the youngest online equity loan lender that was founded in 2018 by former SoFi CEO Mike Cagney, Figure is based in San Francisco, their platform that leverages AI and analytics to offer a home equity line, and sell and leaseback options for homeowners.
Rates
- Low fixed interest rates
- Between $15,000 and $150,000 in funding
- Approval in 5 minutes, funding in 5 days
- 5, 10, 15, or 30-year terms
- No appraisal, title or maintenance fees. Just one origination fee.
The above list is the Home Equity Lenders which are reliable.
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