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Best HELOC Lenders of June 2019

A HELOC lets you tap your home's equity. We've selected some of the best HELOC lenders to help you find the right one.
Managing Your Mortgage, Mortgages
At cheatgame.info, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.


A home equity line of credit, or HELOC, is a second mortgage that lets you borrow against the value of your home. You tap the equity only as you need it.

Having a HELOC can be a budget saver, especially when you use your home’s equity for the right reasons, because the interest rate on a HELOC tends to be lower than rates on credit cards and personal loans.

cheatgame.info has chosen some of the best HELOC lenders across several categories to help you find the one that’s right for you.

Best HELOC lenders

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At U.S. Bank

National/regional

National

Max LTV

90%

Why we like it

Ideal for borrowers who want low fees. No closing costs and annual fee is waived for HELOC borrowers with an eligible checking account

 

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at PenFed Credit Union

National/regional

National

Max LTV

90%

Why we like it

Ideal for customers seeking more than plain-vanilla services. PenFed offers a traditional home equity loan as well as interest-only HELOCs and lines with rate adjustments every five years.

 

Read review

at cheatgame.info

National/regional

National

Max LTV

70-80%

Why we like it

Ideal for those who prefer an online experience. Rate discounts available if you sign up for Citibank Auto Deduct and link your HELOC to a premier Citi banking account.

 

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at Chase

National/regional

National

Max LTV

80%

Why we like it

Ideal for homeowners who have a new or existing Chase checking account, where interest rate discounts are available on HELOCs. Chase also offers option to convert HELOC to fixed rate for up to 20 years.

 

National/regional

National

Max LTV

90%

Why we like it

Ideal for equity borrowers looking for flexibility on loan terms. PNC HELOCs have locked fixed-rate terms of 5 to 30 years.

 

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at Connexus

National/regional

National

Max LTV

90% (HEL)

Why we like it

Ideal for Connexus members who want the flexibility of a HELOC that lets them choose among two payment options. Connexus also has a complete line of home equity loan products.

 

National/regional

National

Max LTV

89.9%

Why we like it

Ideal for homeowners who want flexibility. SunTrust offers a variable-rate HELOC where borrowers can convert all or part of the HELOC balance into a fixed-rate option.

 

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at Flagstar Bank

National/regional

National

Max. loan to value

89%

Why we like it

Ideal for current Flagstar customers. Flagstar offers rate discounts for existing customers with high credit scores who withdraw at least $25,000 at closing.

 

Best cash-out refinance lenders

A cash-out refi can be a solid alternative to home equity lines of credit, and you’ll often find it offered with a lower fixed interest rate. Below are two cash-out refinance lenders, but be sure to review our entire list of the best cash-out refinance lenders.

Learn more

at Rocket Mortgage

Min. credit score

620

National / regional

National

Why we like it

Ideal for refi borrowers with little time. Rocket Mortgage brings smart-phone app convenience to the refinance process. And online income and asset verification speeds the process.

 

Read Review

at cheatgame.info

Min. credit score

620

National / regional

National

Why we like it

Ideal for homeowners who are looking to refinance into conventional, FHA or VA mortgages. Guaranteed Rate works with almost anyone with a good credit score and stable income.

Is getting a HELOC a good idea?

Many homeowners get a HELOC to pay for home repairs and renovations. The interest on the HELOC may be tax-deductible if the money is used to buy, build or substantially improve the home, according to the IRS. But defaulting on a HELOC could put your home at risk of foreclosure, so think twice before using one  to pay for vacations, vehicles or other expenditures that don’t build wealth.

How does a HELOC affect your credit score?

Taking out a HELOC will probably reduce your credit score temporarily once it appears on your credit report. Some credit bureaus treat HELOCs as installment loans rather than revolving lines of credit, so maxing out a HELOC might not have the same negative effect on your credit score that borrowing up to the limit on a credit card would.

What credit score do you need for a HELOC?

Lender requirements vary, but typically you’ll need a credit score of 620 or higher.

How does a HELOC work?

A HELOC works like a credit card: You’re able to borrow up to a certain limit, repay some or all of what you took out, then do it again as needed. The lender uses your home’s value to set the HELOC limit. You may borrow during a draw period that lasts for several years and pay only interest on the balance. After the draw period ends, you may no longer take money out, and you pay principal interest.

What are the disadvantages of a HELOC?

The main disadvantage of a HELOC is that your home could be subject to foreclosure if you don’t repay the loan. Also, the interest rate on a HELOC is tied to the prime rate, meaning it can go up or down. When interest rates rise, your minimum monthly payments may go up, too.

Is it better to get a home equity loan or HELOC?

The answer depends on how you plan to use the money. A HELOC lets you borrow whatever amount you need, as you need it, and you only pay interest on the outstanding balance. A home equity loan provides a lump sum that you repay in installments.

Best HELOC lenders: summary

More from cheatgame.info

cheatgame.info’s selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the cheatgame.info Mortgages team.