Six home equity loan lenders worth comparing in 2026 — ranked by APR, LTV, and funding speed. Fixed-rate lump-sum loans on your home. Rates and terms verified at the lender.
A home equity loan (HEL) is a fixed-rate, lump-sum second mortgage. You borrow against your home's equity, receive the full amount upfront, and repay over a fixed term (typically 5–30 years) at a fixed interest rate. Your home is the collateral — default and you risk foreclosure. The three decisions that matter most: (1) how much equity you have and your lender's CLTV ceiling, (2) whether a fixed lump sum serves you better than a HELOC's revolving line, and (3) the rate environment (HEL rates are partially Fed-linked). Figure is fastest at 5-day funding; Discover Home Loans has no origination fees on loan amounts up to $500K; Rocket Mortgage fits borrowers already in the Rocket ecosystem; U.S. Bank is the most established bank-direct option; Spring EQ extends to 90% CLTV; TD Bank has no closing costs on many HEL products.
| # | Card | ClearValue Rating | Highlight | Apply |
|---|---|---|---|---|
| 1 | Figure Home Equity Loan Figure Lending LLC | 3.9 / 5 | From ~8.35% fixed apr | Apply → |
| 2 | Discover Home Loans — Home Equity Loan Discover Bank | 4.1 / 5 | From ~7.99% fixed apr | Apply → |
| 3 | Rocket Mortgage Home Equity Loan Rocket Mortgage, LLC | 3.9 / 5 | From ~8.25% fixed apr | Apply → |
| 4 | U.S. Bank Home Equity Loan U.S. Bank National Association | 4.1 / 5 | From ~8.20% fixed apr | Apply → |
| 5 | Spring EQ Home Equity Loan Spring EQ, LLC | 3.9 / 5 | From ~9.00% fixed apr | Apply → |
| 6 | TD Bank Home Equity Loan TD Bank, N.A. | 4.1 / 5 | From ~8.29% fixed apr | Apply → |
A home equity loan (HEL) is the structured way to access your home's equity in a single lump sum at a fixed interest rate. Before comparing lenders, understand the collateral exposure: your home secures this loan. Default and the lender can foreclose.
All three products tap home equity. The choice depends on rate environment, draw flexibility, and your existing mortgage:
In a rising-rate environment (Fed target rate elevated), cash-out refinance is often the worst choice — you'd replace a below-market first mortgage with a higher-rate one. A standalone HEL preserves your first mortgage. See our guide HELOC vs. home equity loan vs. cash-out refinance for the full framework.
CLTV formula: (first mortgage balance + new HEL amount) ÷ appraised home value = CLTV
Available equity formula: (home appraised value × lender's CLTV cap) − existing mortgage balance = maximum HEL amount
Example at 85% CLTV: $400,000 home × 85% = $340,000 max debt. With a $250,000 mortgage, max HEL = $90,000. At 90% CLTV (Spring EQ / Discover tier), same example yields $360,000 max debt → $110,000 available.
Most lenders require: - 680+ FICO for approval - 740+ FICO for best published rates - Sufficient equity to meet CLTV ceiling (80–90% depending on lender) - Debt-to-income ratio (DTI) typically below 43% including the new payment - Verifiable income sufficient to support the combined mortgage + HEL payment
Federal law (TILA, 15 U.S.C. § 1635) gives homeowners a 3-business-day right of rescission on home equity loans secured by a primary residence. You may cancel the transaction without penalty within 3 business days of closing. This does not apply to investment properties. Source: CFPB right of rescission guidance at consumerfinance.gov.
Under current law (TCJA, applicable through December 31, 2025), home equity loan interest is deductible only when proceeds are used to buy, build, or substantially improve the home securing the loan. Interest on proceeds used for other purposes (debt consolidation, education, personal use) is not deductible. Tax provisions are subject to change — consult a qualified tax advisor for current-year guidance. ClearValue Lending does not provide tax advice.
APR ranges, CLTV limits, loan amount ranges, fees, and program details were verified at each lender's own official page on June 3, 2026. Home equity loan rates move with the Federal Reserve target rate and broader credit markets. "As low as" rates require excellent credit (typically 740+ FICO), strong equity position (low CLTV), and may vary by state.
Your home secures a home equity loan. Default can result in foreclosure. Verify your complete financial picture — including existing mortgage balance, current home value, income, and DTI — before borrowing against your home's equity. Source: FDIC home equity lending risk overview at fdic.gov; CFPB home equity guidance at consumerfinance.gov.
ClearValue Lending is not the originator of any loan listed here. Each is originated by its respective lender. APRs, fees, eligibility, approval, and funding are determined solely by the lender.
When lender affiliate programs are wired, application links may pay ClearValue Lending a referral commission at no cost to you. Editorial selection and ranking is independent of any commission — lenders are ranked by the methodology above, not by who pays.
This content is for educational purposes and does not constitute financial advice. ClearValue Lending is a small business funding platform — not a home equity lender, broker, or financial advisor.
A home equity loan (HEL) is a closed-end, fixed-rate second mortgage. You borrow a lump sum, receive it all at closing, and repay over a fixed term (5–30 years) with fixed monthly payments and a fixed interest rate. Total interest cost is fully predictable at origination. A HELOC (home equity line of credit) is a revolving line — you draw as needed during the draw period, pay interest on what you use, and the rate is typically variable. HEL is better when you need a specific amount for a defined purpose (renovation, debt consolidation, major purchase) and prefer predictability. HELOC is better when you need ongoing access to credit at lower total draw amounts or uncertain timing. See our guide HELOC vs. home equity loan vs. cash-out refinance for the full decision framework.
Home equity loans use standard amortization. Your fixed monthly payment covers interest on the remaining balance plus principal reduction, with more of the early payments going to interest and more of the later payments going to principal. At the fixed rate quoted at origination, the total interest cost is entirely predictable. Example: a $50,000 HEL at 8.50% over 10 years carries a monthly payment of approximately $620 and total interest of approximately $24,400. Run the exact numbers at the lender using your specific loan amount, rate, and term before applying.
Most lenders require 680+ FICO for home equity loan approval, with the best rates available to 740+ FICO borrowers. The combined loan-to-value ratio (CLTV) — your mortgage balance plus the new HEL as a percentage of your home's appraised value — is at least as important as FICO. Most lenders cap CLTV at 80–85%; Spring EQ extends to 90% CLTV with strong credit. A lower CLTV (more equity) reduces lender risk and typically produces a lower rate quote.
CLTV (combined loan-to-value ratio) measures total debt secured by the property as a percentage of appraised value. Formula: (existing mortgage balance + requested HEL amount) ÷ appraised value = CLTV. Example: $200,000 mortgage + $50,000 HEL on a $300,000 home = 83.3% CLTV. Most lenders cap at 80–85% CLTV, meaning you can typically borrow up to 80–85% of your home's appraised value minus your existing mortgage balance. Higher CLTV = higher lender risk = higher rate or outright ineligibility at some lenders. Source: CFPB home equity lending guidance at consumerfinance.gov.
The primary risk: your home is the collateral. Default on a home equity loan and the lender can foreclose — even if you're current on your primary mortgage. The second risk is property value decline: if your home's value falls after you borrow, you can end up underwater (owing more than the home is worth) on a combined-lien basis. Third: the right of rescission window — federal law (TILA) gives borrowers 3 business days after signing to cancel a home equity loan on a primary residence without penalty. Source: CFPB right of rescission guidance at consumerfinance.gov; FDIC home equity lending risk overview at fdic.gov.
Under the Tax Cuts and Jobs Act (TCJA), home equity loan interest is deductible only when the loan proceeds are used to buy, build, or substantially improve the secured property (the home). Interest on funds used for other purposes (debt consolidation, tuition, etc.) is not deductible under current law. The TCJA deductibility provisions are scheduled to expire after 2025 — consult a tax advisor for the status in the current tax year. ClearValue Lending does not provide tax advice.
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