Home Ownership
Best Home Equity Loans 2026: Lowest Rates, No Closing Costs, Expert Comparison
Quick Answer: Best Home Equity Loans in 2026
Best overall for lowest rates: Navy Federal (7.8%-9.0% APR, 90% LTV, $0 closing costs)
Best for no closing costs: Third Federal (8.3%-9.5% APR, $0 closing, 85% LTV)
Best for digital experience: Discover (8.0%-9.2% APR, 90% LTV, $0 closing costs)
Best for low credit (620+): Discover or Spring EQ (620 minimum credit score)
Best for borrowers with high home equity: US Bank (80% LTV, competitive rates 8.1%-9.3%)
Home Equity Loan Comparison Table
| Lender |
Interest Rate Range |
Min. Credit Score |
Max LTV |
Closing Costs |
Term Length |
| Navy FederalLowest Rates |
7.8%-9.0% |
660 |
90% |
$0 |
5-20 years |
| DiscoverDigital |
8.0%-9.2% |
620 |
90% |
$0 |
5-20 years |
| Spring EQLow Credit |
8.1%-9.2% |
620 |
85% |
$0 |
5-20 years |
| Third FederalNo Costs |
8.3%-9.5% |
680 |
85% |
$0 |
5-20 years |
| US Bank |
8.1%-9.3% |
680 |
80% |
$1,500-$3,000 |
5-20 years |
| TD Bank |
8.2%-9.4% |
680 |
80% |
$1,000-$2,500 |
5-20 years |
Navy Federal Home Equity Loans: Best for Lowest Rates
Interest Rate
7.8%-9.0% APR
Minimum Credit Score
660
Maximum Loan-to-Value
90%
Closing Costs
$0
Term Length
5-20 years
Membership Required
Yes (military, veterans, families)
Why We Picked Navy Federal
Navy Federal offers the lowest starting interest rates on home equity loans in 2026 at 7.8% APR. Combined with zero closing costs and a 90% loan-to-value ratio, Navy Federal is the most competitive choice for borrowers who have access to membership. A $200,000 home equity loan at 7.8% over 15 years costs approximately $1,581 per month, saving you roughly $3,600 annually compared to competitors at 9.0% APR.
Best For
Active military members, veterans, service members' families, and retirees with access to Navy Federal membership. Borrowers seeking the absolute lowest rates and willing to meet membership requirements.
Key Benefits
- Lowest rates on the market (7.8%-9.0%)
- $0 closing costs saves you thousands upfront
- 90% LTV allows borrowing up to 90% of home equity
- Fixed rates lock in predictable monthly payments
- 15-year and 20-year terms available for flexible repayment
Watch-Outs
Membership eligibility is required. Navy Federal membership is not available to everyone. If you do not qualify (no military connection, not an immediate family member), you cannot apply. Rates vary based on credit score, so a 660 credit score may not qualify for the advertised 7.8% rate.
Check Navy Federal Eligibility
Discover Home Equity Loans: Best for Digital Experience
Interest Rate
8.0%-9.2% APR
Minimum Credit Score
620
Maximum Loan-to-Value
90%
Closing Costs
$0
620
Maximum Loan-to-Value
90%
Closing Costs
$0
Term Length
5-20 years
Processing Time
5-7 business days
Why We Picked Discover
Discover offers competitive rates (8.0%-9.2%), zero closing costs, and a fully digital application process with no mortgage broker required. Discover approves borrowers with credit scores as low as 620, making it accessible to more homeowners. You can apply online, receive a decision within 24 hours, and close in as little as 5-7 business days, making Discover ideal for borrowers who prioritize speed and convenience.
Best For
Borrowers comfortable with entirely online processes. Those with credit scores below 660 who still want competitive rates. Anyone seeking approval and closing in under two weeks.
Key Benefits
- 100% online application and approval
- Competitive rates starting at 8.0% APR
- $0 closing costs
- Accepts credit scores as low as 620
- Fast closing: 5-7 business days typical
- 24-hour decision on applications
Watch-Outs
Lower credit scores (620-660) will likely receive higher rates within the 8.0%-9.2% range. Online-only means no in-person support if you prefer face-to-face interactions.
Apply with Discover
Spring EQ Home Equity Loans: Best for Low Credit Scores
Interest Rate
8.1%-9.2% APR
Minimum Credit Score
620
Maximum Loan-to-Value
85%
Closing Costs
$0
Term Length
5-20 years
Focus
Flexible credit requirements
Why We Picked Spring EQ
Spring EQ specializes in home equity loans for borrowers with lower credit scores and unconventional credit histories. With a 620 minimum credit score requirement and no closing costs, Spring EQ removes barriers to home equity borrowing. The 8.1%-9.2% rate is competitive for borrowers with limited credit options, and their 85% LTV provides reasonable borrowing capacity while maintaining underwriting standards.
Best For
Borrowers with credit scores between 620-680 who have been declined by traditional lenders. Those with recent credit challenges or limited credit history. Homeowners who prioritize accessibility over rate competition.
Key Benefits
- Accepts credit scores as low as 620
- No closing costs
- Flexible underwriting for non-traditional credit
- Rates remain competitive (8.1%-9.2%)
- Same-day prequalification available
Watch-Outs
Maximum LTV is 85% (lower than Navy Federal and Discover at 90%), so you can borrow less against your home equity. As a credit-inclusive lender, rates may be higher than competitors if your credit score is in the low 600s.
Get Spring EQ Quote
Third Federal Home Equity Loans: Best for No Closing Costs
Interest Rate
8.3%-9.5% APR
Minimum Credit Score
680
Maximum Loan-to-Value
85%
Closing Costs
$0
Term Length
5-20 years
Availability
Select states (OH, PA, FL, CA, CT)
Why We Picked Third Federal
Third Federal is a community-focused lender with over 150 years of history, specializing in transparent, straightforward home equity lending. They proudly advertise zero closing costs with no hidden fees. For borrowers in Third Federal's service areas (Ohio, Pennsylvania, Florida, California, Connecticut), the lender offers local branch support, face-to-face consultations, and personalized service that larger banks cannot match.
Best For
Borrowers in Third Federal's service regions who value personalized customer service. Those who prefer working with a local lender and want transparency about costs. Homeowners with good credit (680+) seeking no closing costs and long-term relationships.
Key Benefits
- Zero closing costs (no hidden fees)
- Local branch support and face-to-face service
- 150+ year history of reliable service
- Flexible terms: 5-20 years
- Transparent pricing
- Fixed-rate options lock in certainty
Watch-Outs
Geographic limitations: Third Federal operates in select states only. If you are outside Ohio, Pennsylvania, Florida, California, or Connecticut, you cannot apply. Rates are slightly higher (8.3%-9.5%) than Navy Federal and Discover, though closing costs are $0.
Visit Third Federal
US Bank Home Equity Loans: Traditional Bank Option
Interest Rate
8.1%-9.3% APR
Minimum Credit Score
680
Maximum Loan-to-Value
80%
Closing Costs
$1,500-$3,000
Term Length
5-20 years
Customer Base
Existing US Bank customers often get better rates
Why We Picked US Bank
US Bank is one of the largest banks in the United States with broad availability, established processes, and nationwide branch support. Their 8.1%-9.3% rates are competitive, and existing US Bank customers often qualify for relationship discounts. While closing costs of $1,500-$3,000 are higher than zero-cost competitors, customers with existing US Bank accounts (checking, savings, or credit cards) may negotiate lower closing costs or rate reductions.
Best For
Current US Bank customers seeking a one-stop financial solution. Borrowers who value nationwide branch presence and established customer service. Those willing to pay closing costs for relationship discounts and personalized service.
Key Benefits
- Nationwide availability and branch network
- Competitive rates (8.1%-9.3%)
- Existing customers may receive rate discounts
- Established bank with strong reputation
- 5-20 year terms available
Watch-Outs
Closing costs of $1,500-$3,000 are required, compared to zero-cost competitors. Lower LTV at 80% means less borrowing capacity. Rates require 680+ credit score. If you are not a US Bank customer, you may not qualify for the best rates.
Check US Bank Rates
TD Bank Home Equity Loans: Regional Alternative
Interest Rate
8.2%-9.4% APR
Minimum Credit Score
680
Maximum Loan-to-Value
80%
Closing Costs
$1,000-$2,500
Term Length
5-20 years
Coverage
East Coast, Mid-Atlantic, New England
Why We Picked TD Bank
TD Bank is a strong regional option in the Northeast and Mid-Atlantic with competitive 8.2%-9.4% rates and lower closing costs ($1,000-$2,500) than US Bank. If you have a TD Bank account or live in their service area, you may receive competitive rates and streamlined application processes. TD Bank's regional expertise means local branch support and understanding of regional market conditions.
Best For
Customers living in TD Bank's Northeast service area (New England, Mid-Atlantic, Pennsylvania, New Jersey, New York). Existing TD Bank customers. Those seeking regional bank expertise with competitive national rates.
Key Benefits
- Competitive rates (8.2%-9.4%)
- Lower closing costs than national banks ($1,000-$2,500)
- Regional branch network in service areas
- Fixed-rate options available
- Flexible 5-20 year terms
Watch-Outs
Regional availability only. Not available in all states. Closing costs remain required ($1,000-$2,500). 80% maximum LTV limits borrowing. Requires 680+ credit score.
Get TD Bank Quote
Which Home Equity Loan Should You Choose?
Quick Decision Guide
If your credit score is 620-679:
Choose Discover or Spring EQ. Both accept scores as low as 620 and offer $0 closing costs. Discover offers faster closing (5-7 days), while Spring EQ offers more flexible underwriting for non-traditional credit.
If your credit score is 680+:
You qualify for all lenders. If you are military or Navy Federal-eligible, choose Navy Federal for the lowest rates (7.8%-9.0%). If not military, choose Discover or Third Federal for $0 closing costs. If you prefer working with a traditional bank, US Bank or TD Bank are alternatives, though they charge closing costs.
If you want to borrow the maximum amount:
Choose Navy Federal or Discover, both offering 90% LTV. This allows you to borrow more against your home equity. US Bank and TD Bank offer only 80% LTV, limiting your total borrowing capacity. Third Federal and Spring EQ offer 85% LTV.
If you want to minimize upfront costs:
All lenders except US Bank and TD Bank offer $0 closing costs. Navy Federal, Discover, Spring EQ, and Third Federal eliminate closing costs entirely. This saves you $1,000-$3,000 compared to US Bank or TD Bank.
If you want the fastest closing:
Choose Discover. Their fully digital process closes in 5-7 business days.
LoanDepot (partner) also offers rapid closing, often within 7-10 days.
If you prefer working with a local lender:
Choose Third Federal if in their service area (OH, PA, FL, CA, CT) or US Bank/TD Bank if in their regions. Third Federal's 150-year history and community focus offer personalized service and local branch support.
Home Equity Loan vs HELOC vs Home Equity Investment: Which is Right for You?
Home equity products come in three forms, each suited to different financial needs. Understanding the differences will help you choose the right structure for your situation.
| Product |
Structure |
Payment |
Best For |
Example Use Case |
| Home Equity Loan (HEL) |
Fixed lump sum at fixed rate, fixed term (5-20 years) |
Fixed monthly payment; principal + interest |
Borrowers who know exactly how much they need and want predictable payments |
Renovating a kitchen ($50,000 at 8.5%, paid over 10 years = $491/month) |
| Home Equity Line of Credit (HELOC) |
Revolving credit line, draw what you need when you need it, variable rate |
Interest-only during draw period (typically 10 years), then principal + interest repayment period (10-20 years) |
Borrowers with uncertain funding needs or wanting flexibility to access funds over time |
Funding home improvements gradually, using funds as projects complete |
| Home Equity Investment (HEI) |
Lender provides cash in exchange for percentage of future home value appreciation |
No monthly payment; lender receives percentage of home's appreciation when you sell or refinance |
Borrowers who need cash but want to preserve credit score and monthly cash flow |
A $200,000 home worth $400,000: sell 10% appreciation, receive $50,000 today, pay back from future appreciation |
Why Choose a Home Equity Loan (This Article's Focus)
A traditional home equity loan is the most popular choice for homeowners because you receive a fixed sum of money upfront at a fixed interest rate with a set repayment schedule. Your monthly payment never changes, making budgeting simple and predictable. If you know exactly how much you need (for home improvements, debt consolidation, or a major expense), a home equity loan eliminates uncertainty and provides the lowest rates among home equity products.
Our Methodology: How We Rank Home Equity Loans
At WalletGrower, we evaluate home equity loans across multiple dimensions to ensure you get accurate, unbiased recommendations. Our methodology prioritizes transparency, applicability to real borrowers, and value.
Evaluation Criteria
- Interest Rates: We compare current 2026 APR ranges, noting minimum credit score requirements to achieve advertised rates. Rates vary by credit score, so we present ranges that reflect real-world borrower experience.
- Closing Costs: We verify whether lenders charge closing costs and document the range. Some lenders advertise $0, others charge 1-3% of the loan amount. This directly impacts your net borrowing capacity.
- Loan-to-Value (LTV) Limits: We compare maximum LTV ratios, which determine how much you can borrow against your home equity. 90% LTV allows more borrowing than 80% LTV on the same home.
- Credit Score Minimums: We note each lender's stated minimum credit score requirement. This determines accessibility for borrowers with credit challenges.
- Speed and Convenience: We evaluate application methods (online, branch, phone), typical approval timeframes, and closing speed. Online lenders close faster; traditional banks offer branch support.
- Term Flexibility: We verify available term lengths, typically 5-20 years. Longer terms reduce monthly payments but increase total interest paid. Shorter terms reduce total interest but increase monthly obligations.
- Customer Service Quality: We assess availability of branch support, customer service channels, and feedback from real borrowers regarding service quality and transparency.
- Transparency and Reputation: We verify company history, regulatory filings, and real borrower reviews to assess trustworthiness and likelihood of hidden fees or deceptive practices.
Lenders are ranked primarily by value: the best combination of rate competitiveness, accessibility (credit score and LTV), and cost transparency. A slightly higher rate with $0 closing costs may provide better value than a fractionally lower rate with $3,000 in costs.
Frequently Asked Questions: Home Equity Loans 2026
What is the best home equity loan right now in 2026?
Navy Federal offers the best rates (7.8%-9.0%) if you qualify for membership (military, veterans, families). If not military-eligible, Discover offers the best combination of competitive rates (8.0%-9.2%), low credit score accessibility (620+), and zero closing costs with digital closing in 5-7 days.
How much can I borrow with a home equity loan?
The amount you can borrow depends on your home's value, your remaining mortgage balance, and the lender's maximum LTV (loan-to-value) ratio. Example: If your home is worth $500,000, you owe $250,000 on your mortgage, you have $250,000 in equity. With a 90% LTV lender (Navy Federal, Discover), you can borrow up to 90% of your equity, or $225,000. With an 80% LTV lender (US Bank), you can borrow 80% of equity, or $200,000. Lenders also consider your income and debt-to-income ratio, so you cannot always borrow the maximum allowed by LTV.
What credit score do I need to qualify for a home equity loan?
Most home equity lenders require a minimum credit score of 680 for their best rates. However, some lenders accept borrowers with scores as low as 620 (Discover, Spring EQ). A lower credit score may result in a higher interest rate within the lender's range. For example, Navy Federal's 7.8%-9.0% range means borrowers with lower credit within their range receive 9.0%, while those with excellent credit receive 7.8%.
Are home equity loan interest payments tax deductible?
Home equity loan interest is tax deductible if you itemize deductions on your tax return and the loan proceeds are used to substantially improve your home (kitchen renovation, roof replacement, room addition, etc.). Interest is not deductible if you use the loan for debt consolidation, vehicle purchases, or general expenses. The Tax Cuts and Jobs Act (2017-2025) limits deductibility to interest on up to $750,000 in home equity debt. Consult your tax professional for your specific situation, as rules are complex and depend on your loan use and filing status.
How long does it take to get approved for a home equity loan?
Digital lenders like Discover can approve applications within 24 hours, with closing in 5-7 days. Traditional banks (US Bank, TD Bank) typically require 7-14 days to process applications, with closing in 2-3 weeks. Navy Federal may take longer due to underwriting requirements. The fastest option is Discover's fully digital process, while the most thorough process is at traditional banks with local branch review.
What fees should I expect with a home equity loan?
Closing costs (paid at closing, typically 1-3% of loan amount) are the primary fees. Navy Federal, Discover, Spring EQ, and Third Federal charge $0 closing costs. US Bank charges $1,500-$3,000. TD Bank charges $1,000-$2,500. Some lenders charge application fees (typically $200-$500) that may be waived. Always ask lenders for a Loan Estimate showing all fees and costs in writing before committing.
Can I use a home equity loan to pay off credit card debt?
Yes. Using home equity to consolidate high-interest credit card debt (typically 18-22% APR) into a home equity loan (8-9% APR) can save thousands in interest. Example: $20,000 credit card debt at 20% APR costs $4,886 in annual interest. The same $20,000 as a home equity loan at 8.5% costs $1,700 annually, saving $3,186 per year. However, you're converting unsecured debt into secured debt (against your home), so failure to repay risks foreclosure. Only do this if you're committed to not re-accumulating credit card balances.
Is a home equity loan better than a HELOC?
It depends on your situation. A home equity loan is better if you know exactly how much you need, want a fixed rate and fixed payment, and will use the funds soon. A HELOC is better if you have uncertain funding needs, want to access funds over time, or may use only part of the available credit. HELOCs typically have lower initial rates during the draw period (first 10 years) but variable rates during repayment, creating payment uncertainty.
Explore More Home Ownership Resources
Build Your Financial Plan with Credit Sesame
Before applying for a home equity loan, check your credit score for free with Credit Sesame. Most home equity lenders require 620+ credit scores, and knowing your score helps you target the right lenders and expect accurate rate quotes. Credit Sesame provides your score, credit report insights, and personalized recommendations.
Get Your Free Credit Score
Earn Rewards While You Manage Your Home
As you manage your home equity and finances, earn rewards on everyday purchases with Swagbucks. Rewards can help offset interest costs or fund future home improvements. No annual fees, earn on restaurants, travel, shopping, and more.
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Monitor Your Money with Albert
Manage your home equity loan and overall finances with Albert, which provides cash flow insights, spending analysis, and financial planning tools. Track your loan balance, monitor interest paid, and get alerts when you're approaching your credit limits or payment deadlines.
Start Monitoring Your Money
Affiliate Disclosure: WalletGrower has relationships with Discover, Navy Federal, Third Federal, Spring EQ, US Bank, TD Bank, loanDepot, Credit Sesame, Swagbucks, and Albert. This article contains affiliate links. When you click through and apply for a product, WalletGrower may receive compensation. This does not affect the rates or terms you receive, nor does it increase your costs. We only recommend products that we believe provide value to borrowers. Please read our full disclosure and review our methodology above for transparency about how we rank and evaluate products.
Content Accuracy: All rates, APRs, LTV limits, credit score requirements, and closing costs reflect 2026 market conditions and lender information current as of April 2, 2026. Rates and terms change frequently. Always verify current rates and terms directly with lenders before applying. This article is informational and not legal or financial advice. Consult your financial professional about your specific situation.
Affiliate Disclosure
WalletGrower may earn affiliate commissions when you sign up for products and services through our links. This does not cost you anything extra and helps us maintain our free guides and tools. We only recommend services we believe provide genuine value.
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