7 Best Home Equity Loans of March 2026

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Mortgages Home Equity Loans Share Share Close Mail Page URL https://money.com/best-home-equity-loans/ Link copied! 7 Best Home Equity Loans of March 2026 By: Aly J. Yale Aly J.

Yale Contributing Writer | Joined June 2020 Has also written: 6 Best Reverse Mortgage Companies of March 2026 5 Best Home Equity Sharing Companies of March 2026 6 Best Mobile Home Loans of March 2026 How Much House Can I Afford? How to Get a Home Equity Loan With Bad Credit See full bio Editor: Leslie Cook Leslie Cook Editor, Real Estate | Joined November 2019 Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. Has also written: How to Find Affordable Homeowners Insurance in 2024 Daily Mortgage Rates Trended Higher This Week | April 23 & 24, 2022 5 Best Mortgage Refinance Companies of March 2026 Current Mortgage Rates: February 23 to February 27, 2026 8 Best Mortgage Lenders of March 2026 See full bio Updated by: Leslie Cook Leslie Cook Editor, Real Estate | Joined November 2019 Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. Has also written: How to Find Affordable Homeowners Insurance in 2024 Daily Mortgage Rates Trended Higher This Week | April 23 & 24, 2022 5 Best Mortgage Refinance Companies of March 2026 Current Mortgage Rates: February 23 to February 27, 2026 8 Best Mortgage Lenders of March 2026 See full bio Published: Feb 27, 2026 20 min read Ads by Money. We may be compensated if you click this ad.AdEnter ZIP Code:Sort by:OriginationsOur PartnerCompany HighlightOur PartnerAPPLY NOWUnlock the value already in your home Put your home’s equity to work for you Predictable payments with fixed interest rates Guidance from experienced Home Loan Experts Fund renovations, upgrades, or major expenses Trust Pilot Rating4.7 out of 5TrustPilot Reviews34,231Originations133,403Our PartnerAPPLY NOWFind a home equity option that works for you Unlock cash from within your home Online loan application process Turn your home equity into the cash you need Over $100 Billion Funded. 21 Years in Business Trust Pilot Rating4.5 out of 5TrustPilot Reviews13,356Originations9,510Our PartnerAPPLY NOWFlexible terms, redraw up to 100%, borrow up to $750K Approval in 5 minutes. Funding in as few as 5 days. Use to consolidate debt or finance your next project 100% digital app & online appraisal Good/Excellent credit Trust Pilot Rating4.5 out of 5TrustPilot Reviews2,602Originations8,385Our PartnerAPPLY NOWNo monthly payments required Borrow up to $600,000 Repay when it's convenient for you Online quote tool won't hurt credit Apply entirely online Trust Pilot Rating4.7 out of 5TrustPilot Reviews4,187OriginationsN/AOur PartnerAPPLY NOWUnlock your home's equity without adding to your debtUnlock your home's equity without adding to your debtGet up to $500K cash–no loan No monthly payments & a 30 year term Keep current equity, share appreciation If home value drops, Unison shares loss The industry pioneer since 2006 Trust Pilot Rating4.2 out of 5TrustPilot Reviews13OriginationsN/AOur PartnerAPPLY NOWHome Equity Sharing No cash due at closing No monthly payments necessary Borrow up to $600,000 Only 25% equity required and no prepayment penalties Trust Pilot Rating4.9 out of 5TrustPilot Reviews3,793OriginationsN/A Key TakeawaysPNC's low rates, extended prepayment period and large loan amounts make it our pick for the best home equity loan lender.Methodology: We reviewed more than 60 home equity lenders, comparing interest rates, credit score requirements, loan terms, repayment periods, and loan-to-value ratios to find the best option.Editor's take: PNC's combination of rate, terms and LTV ratio makes it our pick for the best home equiity lender.Updated monthly; last updated Feb. 2026 * Sample rates and APRs are subject to change. All information provided here is accurate as of February 27, 2026, and may change at any moment. One of the biggest perks of owning a home is the equity you can build. When you sell, that equity can translate into cash at closing. But you can borrow from that equity while still living in the home, too — using it to pay for home repairs, unexpected medical bills, or even to consolidate higher-interest debts, like credit cards. Home equity loans and home equity lines of credit (HELOCs) are two tools you can use to turn your equity into cash. According to our research, these are the best home equity lenders currently on the market. What to know about home equity loans Home equity loans turn your home equity into a lump sum of cash you can use however you’d like. There are also HELOCs, which work more like credit cards, allowing you to turn your home equity into a credit line you can withdraw from as needed. You can get home equity loans and HELOCs from big-name banks, online lenders, credit unions, financial technology companies, and online banks. Qualifying standards, loan amounts, property requirements, and other details are not standardized and vary by financial institution. How we chose our top picks Our editors and writers reviewed over 60 home equity products and lenders to ensure our list is as comprehensive as possible. We used publicly available data and interviews with lender representatives to verify its accuracy. We then used factors such as interest rates, term options, maximum loan amounts, credit score requirements, and loan-to-value thresholds to assign a score to each lender on a scale of one to five. Below are the top companies that emerged. Read our full methodology to learn more.

Our Top Picks for Best Home Equity Lenders of March 2026 PNC Bank: Best Overall Figure: Best HELOC Connexus Credit Union: Best No-Appraisal Option Navy Federal: Best for Military Borrowers M&T Bank: Best for Low Rates Rate: Best for Investors Fifth Third: Best Flexible Rate Lock Ads by Money. We may be compensated if you click this ad.AdStart tapping into the equity of your home to pay for major expensesWork with a licensed Rocket Mortgage (NMLS #3030) representative in your state today.HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexasApply Now Best Overall: PNC BankApply Now Highest overall score in our review processUp to 90% LTVLowest credit score minimum we foundHigh loan amountsLow intro rate, fixed and variable rate optionsNo home equity loans (only HELOCs)In-person appraisal is requiredNot available in all 50 states HIGHLIGHTSProduct TypesHELOCMaximum loan amount$1 millionMaximum LTV80% to 89.99%, depending on several factorsTerms10-year draw periods with 30-year repayment periods; 5 to 30 years for fixed-rate options; 5-year interest-only optionsInterest ratesNot availableCredit score minimumOver 600, though credit requirements can vary by borrowerProperties allowedSingle-family homes, multi-family properties, condos, and mobile homes Why we chose it: PNC Bank came out on top with a whopping 4.85 out of 5 score, making it the best-rated home equity product among the 60+ we analyzed. The bank offers large loan amounts, low credit score requirements (the lowest we found), and a variety of rate and term options to choose from. Best HELOC: FigureOur PartnerApply Now Low fixed ratesSeveral term optionsRelatively low credit score requirementsFast funding timeTypically, no in-person appraisal is requiredNot available in all 50 statesRelatively low maximum loan amountLTV could be higher HIGHLIGHTSProduct TypesHELOCMaximum loan amount$750,000Maximum LTV85%Terms5, 10, 15, and 30 yearsInterest ratesFixed rates starting at 6.05% APRCredit score minimum640Properties allowedSingle-family homes, townhouses, planned urban developments (PUDs), most condos, and duplexes. Both primary and secondary residences can qualify. Why we chose it: Figure, an online financial technology company, has our top HELOC. The line of credit comes with a low fixed interest rate and four term options, ranging from five to 30 years. Its minimum credit score is relatively low at 640, and you typically won’t need an in-person appraisal (the lender usually utilizes Automated Valuation Models, or AVMs, instead). And the best part? Many borrowers get their cash within just five days. Best No-Appraisal Option: Connexus Credit UnionApply Now No in-person appraisal requiredLow interest rates and credit score minimumLong draw period on HELOCsHigh LTV maximum No 30-year home equity loan optionsNot available in all 50 statesRequires credit union membership HIGHLIGHTSProduct TypesHome equity loans and HELOCsMaximum loan amountVaries by state and borrowerMaximum LTV90%Terms5, 10, and 15 years on home equity loans; 15-year draw and 15-year repayment on HELOCsInterest rates4.99% intro APR until Oct. 1, 2026, and 5.49% APR until April 1, 2027, then as low as 7.94% for a standard HELOCs and 8.44% APR for interest-only HELOCs; fixed rates starting at 7.31% APR for home equity loansCredit score minimum640Properties allowedPrimary residences, second homes, duplexes, townhomes, and two- to four-unit condos Why we chose it: Connexus Credit Union is the place to look if you’re hoping to avoid the hassle and headache of an appraisal. You can obtain both home equity loans and HELOCs from the lender, and its low credit score minimum, 90% LTV maximum, and lengthy 15-year draw period on HELOCs are notable as well. You can even borrow against your second home if you have one — something not all home equity lenders allow. Best for Military Borrowers: Navy FederalApply Now Offers both home equity loans and HELOCsLong draw period on HELOCs High maximum LTV Several term options No closing costs Only available to active and retired military, DoD employees and their families Credit score requirement could be lower No 30-year home equity loan options HIGHLIGHTSProduct TypesHome equity loans and HELOCsMaximum loan amount$500,000Maximum LTV95% to 100%, depending on the productTerms5, 10, 15, and 20 years for home equity loans; 20-year draw and 20-year repayment for HELOCsInterest ratesFixed, starting at 7.34% APR on home equity loans; variable, starting at 7.00% APR on HELOCsCredit score minimum650Properties allowedPrimary residences and second homes, as long as they’re within 50 miles of your primary residence Why we chose it: Navy Federal’s home equity loans have several standout features that borrowers might find valuable. For those seeking extended access to cash, its HELOC is a good option, offering a 20-year draw period — longer than any other product we analyzed. If you’re hoping to tap a good amount of equity, consider a home equity loan instead, which offers up to a 100% LTV with no closing costs. Best for Low Rates: M&T BankApply Now Low interest rates Both variable and fixed rate options Loan amounts up to $1 million No closing costs Not available in all 50 states High credit score minimum HIGHLIGHTSProduct TypesHELOCMaximum loan amount$1 millionMaximum LTV85.99% for primary residences; 70.99% for vacation homes and manufactured homesTerms10-year draw and 20-year repayment periodsInterest ratesIntro rate of 5.24% APR for six months; variable rates starting at 5.94% APR after; three fixed-rate lock options availableCredit score minimum680Properties allowedPrimary residences, vacation homes, condos, townhomes, one- to four-unit properties, and manufactured homes Why we chose it: M&T Bank’s 5.49% intro rate can save you significantly on interest in the first six months of your loan — especially when considering how high the lender’s loan amounts go (up to $1 million). Borrowers also have three fixed-rate lock options available during their loan term and may elect interest-only payments during the draw period. One more notable detail: There are no application fees, closing costs, or annual fees. Best for Investors: RateApply Now Investment properties and rentals allowedNo closing costs Low fixed rates Low credit score requirement Short draw period Fairly low maximum loan amount Not available in all 50 states HIGHLIGHTSProduct TypesHELOCMaximum loan amount$400,000Maximum LTV85%Terms2 to 5-year draw and 5, 10, 15, or 30-year repayment periodInterest ratesFixed, starting at 6.05% APRCredit score minimum640Properties allowedPrimary residences, second homes, investment properties, single-family rentals, condos, and townhomes Why we chose it: For those looking to cash in on an investment property or rental home, look to Rate. The online lender, formerly Guaranteed Rate, allows you to borrow against primary residences, second homes, investment properties, single-family rentals, and more, and interest rates are fixed, giving you consistency for the entire five, 10, 15 or 30-year term you chose. Most loans require no in-person appraisal.

Best Flexible Rate Lock: Fifth ThirdApply Now Rate lock option lets you choose the number and amount of monthly payments Low introductory interest rate High LTV value No closing costs Only available in 12 states, soon to expand to 15 $95 fee to lock in rate HIGHLIGHTSProduct types Home equity loans and HELOCsMaximum loan amount$500,000Maximum LTV90%Interest ratesRates vary for home equity loans; 4.99% introductory rate for the first six months on a HELOC, then rates starting at 6.75% APRCredit score minimumVariesProperties allowedOwner-occupied residences, non-owner-occupied properties, and multi-unit properties Why we chose it: Fifth Third's flexible rate-lock option allows you to secure a fixed interest rate on the lender's Equity Flexline HELOC, thereby locking in a favorable rate on part or all of the available line of credit. You choose how long you want to lock the rate for and how much you want to pay, which can help lower your monthly costs if you need some wiggle room. Ads by Money. We may be compensated if you click this ad.AdLeverage your home equity with a Cash-Out RefinanceWork with a licensed Rocket Mortgage (NMLS #3030) representative today.Apply Now Other companies we considered TD Bank TD Bank was a top choice for best overall home equity lender, boasting both a HELOC and home equity loan that were highly rated under our scoring system. The lender offers a variety of term and rate options, and its loan amounts go up to $6 million. Why we didn't choose it: The only factor holding it back was its limited geographic footprint, which prevents many borrowers from benefiting from its benefits. Achieve Achieve is a popular online lender we also considered. Its fixed-rate HELOC is notable, offered in 10, 15, 20 and 30-year terms. The lender also has one of the lowest credit score requirements — 600 — among the companies we considered, making it a good choice for borrowers with less-than-perfect credit. Why we didn't choose it: The short, five-year draw period could be an issue for some borrowers and its maximum loan amounts are on the lower end, too, especially if you aim to use the cash for debt consolidation — those are limited to $150,000.

Rocket Mortgage Rocket Mortgage is often ranked as a top mortgage lender thanks to its easy online application process, multiple loan options and high customer satisfaction ratings. They offer loans in all states and may be a good choice for someone seeking an online lender. Why we didn't choose it: Rocket's home equity products have high credit score requirements (you need a 740 to qualify for a 90% LTV) compared to other lenders we considered, and the company offers no advertised rates with which to gauge your costs. In-person appraisals are also required, which increases the cost of accessing your equity. SoFi We also considered online bank SoFi for our list. The lender’s home equity loan offers several term options and loans of up to $350,000 for home improvements or debt consolidation. Why we didn't choose it: The minimum credit score of 680 is slightly higher than that of some other options we considered, and its interest rates are higher than those of others we analyzed, placing it behind other home equity loans on this list. What you need to know about home equity loans Homeowners have accumulated near-record levels of home equity over the past five years, driven by the rapid rise in home prices triggered by the pandemic-driven buying frenzy. Current estimates place the total equity held by American households at approximately $48 trillion — a near-record level. Equity can be accessed in several ways, but the recent decline in mortgage rates has led to a spike in the demand for home equity loans — an increase that Fabien Thierry, head of home equity lending at Citizens Bank, says is likely to continue this year. Thierry explains that, with interest rates expected to remain near 6% and most homeowners holding mortgage rates at 5% or below, home equity products will be preferred to refinancing. "This is why we've seen home equity being such a wonderful tool for [clients] to make those [decisions] between renovations, cash flow management and debt consolidation," Thierry says. If you’ve never tapped your home equity before, it can be a time-consuming process. Here’s how these loans work and how you can borrow from your equity successfully. What is a home equity loan? A home equity loan is a type of second mortgage — meaning it’s a loan you take out in addition to your main mortgage. It has its own terms, interest rate, and monthly payments. And, like your first mortgage, it uses your home as collateral, so if you fail to make payments, the lender can foreclose on your home. HELOCs are a type of second mortgage, too. However, these two loans work very differently, even though they tap the same equity. A home equity loan works just like a regular loan you’d use to buy almost anything – you get a lump sum at closing to use for whatever expenses you want to cover. With a HELOC, however, you’re actually turning your equity into something more like a credit card. Instead of receiving a lump sum payment that you have to repay at a set pace over a set amount of time, you can borrow up to the maximum amount of the HELOC, just like with a credit card, and just like with a credit card, you only pay for what you borrow. How does a home equity loan work? Home equity loans let you borrow from your home equity — or the portion of your home that you actually own. Typically, lenders will let you borrow up to 80 to 90% of your home’s value, minus the balance on your existing mortgage loan. So, if your home is worth $300,000 and you have a mortgage balance of $150,000, you can expect to be able to tap between $90,000 and $120,000, depending on your lender’s limits. Once you receive your cash, home equity loans work just like your primary mortgage. You’ll pay it off with set monthly payments over a long period, ranging from five to 30 years. HELOCs have a slightly different repayment strategy. With these, you’ll usually make interest-only payments for the first few years of the loan, then full principal-and-interest payments once your credit line’s draw period ends. Differences between HELOCs and home equity loans HELOCs are less standardized than home equity loans, so a wide range of payment options is possible. This is why it’s so important to understand exactly what the terms of your HELOC are before you sign on the dotted line. In general, a HELOC works like this: your bank gives you a maximum amount that you’re allowed to borrow from your home’s equity, and treats it much like a credit card. You may even get a debit card you can use with your HELOC. You have a set period during which you can borrow money from your credit line, typically from five to 15 years. You may be permitted to pay just the interest during this period, depending on your loan. Once this draw period ends, the amount of your loan is fixed. So, if you were given a $100,000 HELOC but used only $75,000 during your draw period, your final loan amount would be $75,000. At this point, your loan payment is calculated to ensure that the principal is paid in full before the end of your loan term. You’re then expected to pay a full interest and principal payment for the rest of the loan’s life. As to which option may work best for you, Kenon Chen, executive vice president of real estate analytics firm Clear Capital, says it will depend on the purpose behind accessing your equity. "HELOCs tend to give you more flexible options when you're not exactly sure of the project," he says. "The confidence of a fixed rate with the home equity loan makes sense for folks [who] already have a sense for what they want to do." How to choose a home equity lender Choosing the right home equity lender is critical to achieving your goals. Not only do qualifying requirements vary by lender, but so do loan amounts, product types, and more. Be aware that each option has its pros and cons that must be carefully considered. Doing your research and comparing what they offer is an important part of selecting the right lender, Thierry says. Some of the features that can build confidence in your lender include their fee structure, the ease of the application process and how fast their process is. When choosing where to get your home equity loan, make sure to consider the following: Eligibility requirements, including credit score minimums and appraisal requirements. Property types allowed, especially if you’re considering borrowing against a second home, vacation property, or investment home (these are harder to find lenders for). Loan amounts and loan-to-value ratios, since these determine how much you’ll be able to borrow. Fees, rates, and repayment term options, since these factors will determine the overall cost of borrowing and the total interest you'll pay. You should consider customer reviews and ratings, too, as well as any regulatory actions or lawsuits against the company. You can find these by searching for the lender in the Nationwide Mortgage Licensing System (NMLS) database. Pros and cons of home equity loans Pros Cons Allows you to turn your home equity into cash Adds a second mortgage payment to your household Funds can be used for any purpose Puts your home at risk of foreclosure if you don’t make your payments Interest may be tax-deductible if you use the money to improve your house Usually come with upfront closing costs and fees Typically have lower rates than other types of consumer borrowing products Could put you upside down on your house if it loses value Alternatives to home equity loans Home equity loans and HELOCs aren’t the only way for homeowners to borrow cash. If you’re looking for other financing options — and aren't sure which one makes the most sense for your situation — a mortgage professional or financial advisor can help you weigh the pros and cons. In the meantime, here are several alternatives worth considering: Cash-out refinance A cash-out refinance replaces your current mortgage with a new one with a larger balance. You receive the difference between the two balances as a lump-sum payment at closing. Fair warning, though: This loan replaces every aspect of your existing loan, including its rate and payment. This might be an ill-advised move if rates have increased since you took out your current mortgage. Personal loan or credit card If you want to avoid using your home equity altogether, you can consider an unsecured personal loan or even a credit card. Just note that these typically come with much higher rates than home equity products (and mortgages in general), so they might not be a good option if you need to borrow a large amount or expect to carry the balance for an extended period. Reverse mortgage For eligible older homeowners, a reverse mortgage can provide another way to access their home equity. With these, the lender pays you out of your equity — either as a lump sum, monthly or as a line of credit. You won't repay anything until you permanently move out or sell the house. If you pass away and your heirs wish to keep the house, they will need to arrange repayment of the reverse mortgage. Government-backed reverse mortgages are available to homeowners 62 and older, although some lenders offer proprietary options for homeowners as young as 55. Latest home equity news Mortgage rates are currently near three-year lows, providing some relief to prospective buyers who have so far been priced out of the market. But today's lower rates are also a boon to homeowners who may be in need of some extra money, because they make it more attractive to borrow against the increased value of their homes. Most homeowners hold substantial amounts of home equity. The most recent data from analytics firm Cotality indicate that the average borrower has accumulated approximately $299,000 in home equity—a significant amount that can be tapped in an emergency. While some owners may prefer a cash-out refinance, Thierry told Money that, because most homeowners still hold mortgage rates below 6%, they may be drawn to home equity products rather than a refinance. "The level of refinancing is going to be limited," Thierry says. "The decision is going to be staying put and leveraging that tappable equity." Home equity loan FAQsWhat are the negatives of a home equity loan?chevron-downchevron-upThe biggest downside to a home equity loan is that it adds a second monthly payment to your household. It can also lead to foreclosure if you can’t make your payments. What is the monthly payment on a $50,000 home equity loan?chevron-downchevron-upThat depends on the interest rate and term you qualify for. At an 8% rate and 30-year loan term, you can expect to pay about $367 per month for a $50,000 home equity loan. Is a home equity loan tax deductible in 2025?chevron-downchevron-upPrior to 2017, a home equity loan was fully tax-deductible regardless of how the funds were used. Now, the funds must be used to substantially improve the property for which the loan is secured. This means you will not be able to deduct a home equity loan used for any purpose other than home improvement.Is it a good idea to take equity out of your house?chevron-downchevron-upThat depends on your financial situation and what you’re using the funds for. If you’re using the money to improve your home or pay off higher-interest debts, then it can be a smart idea. Just make sure you have the budget to afford the monthly payments for the long haul. Methodology We evaluated dozens of banks, credit unions and online home equity lenders nationwide. We gathered data on product terms, qualifying requirements, interest rates, availability, and other benefits to identify the best ones. We scored lenders on a one-to-five scale based on five categories: interest rates (30%), loan terms (20%), credit score minimums (20%), loan-to-value ratio (15%) and maximum loan amounts (15%). We considered companies that offered competitive interest rates, as these are among the primary factors influencing the cost of financing a home purchase. Companies that offered longer payback periods and, in the case of HELOCs, longer draw periods were assigned higher scores. We prioritized companies with lower credit score requirements because they make products available to a broader range of borrowers. Higher scores were assigned to companies with higher loan-to-value ratios, thereby increasing the pool of borrowers eligible to use the products offered. We assigned companies that offered higher loan amounts higher scores than their competitors. Summary of our top picks for the 7 best home equity loans of March 2026 PNC Bank: Best Overall Figure: Best HELOC Connexus Credit Union: Best No-Appraisal Option Navy Federal: Best for Military Borrowers M&T Bank: Best for Low Rates Rate: Best for Investors Fifth Third: Best Flexible Rate Lock More from Money Best No-appraisal Home Equity Loans of 2025 Best Home Equity Sharing Companies of 2025 How to Get a Home Equity Loan with Bad Credit