As with any loan, the person with the highest credit score will be entitled to the highest interest rate. The banks that provide these services will place more stringent requirements on your credit score and the equity in your property. Here are the best interest rates we can find among lenders who still offer home equity loans:
|LENDER||APR||LOAN AMOUNT||LOAN LENGTH|
|Regions Bank||3.25% to 11.625%||$10,000 to $250,000||7, 10 or 15 years|
|Digital Federal Credit Union (DCU)||3.74% to 6.24%||N/A||5 to 20 years|
|Discover||3.99% to 11.99%||$35,000 to $200,000||10, 15, 20, or 30 Years|
|BBVA||4.04% to 9.09%||$10,000 to $125,000||5 to 30 years|
|Frost Bank||4.24% to 5.49%||$2,000 to $500,000||7 to 20 years|
|BMO Harris||4.54% to 7.49%||$25,000 to $150,000||5 to 20 years|
Regional banks operate in 15 states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, and Texas. Your home must be located in a state with a branch in the area in order to get a home equity loan. Your home can be a primary or secondary residence to secure your home equity loan.
You should be aware of certain fees:
Excess Fee $ 29
Late fees are 5% of the payment amount
Check fees reimbursed $ 15
If you choose to automatically deduct payments from your “regional” checking account, you can benefit from interest rate reductions ranging from 0.25% to 0.5%. The regional bank will pay all of your settlement costs.
Discover offers home equity loans ranging from $ 35,000 to $ 200,000. No need to pay the administration fees, evaluation fees or the original fees, Discover will cover your transaction fees.
Digital Federal Credit Union (DCU)
Not everyone can use Digital Federal Credit Union membership, but if you are a member, home equity loans are available in all 50 states.
When you set up automatic payments through Frost Check or Savings Account, you get a 0.25% discount.
In order to qualify for the lower interest rates on BMO Harris Home Mortgages, you must set up automatic payments through a qualifying BMO Harris current account. No administration fees are required and transaction fees are not low.
BBVA will pay $ 10,000 to $ 500,000 in home equity loan settlement fees. If the loan is repaid within 24 months of loan settlement, these expenses will be offset.