The 10 largest home equity lenders

The pandemic-fueled real estate boom has led to a large appreciation in the worth of home values and the worth of homeownership stakes. The average mortgage-holding homeowner has about $214,000 in equity (the portion of the home they own free and clear).

American homeowners seeking cash have turned to tapping their residences for financing, via home equity lines of credit (HELOCs) and home equity loans (HELoans). While these products’ rates — like interest rates overall — have increased in the last year, they still can be more advantageous than a mortgage refinance or other types of loans.

Here’s a list of the 10 largest (in terms of volume) home equity lenders — the most active originators of home equity loans and HELOCs, according to data prepared for Bankrate by the trade publication Inside Mortgage Finance.

The top 10 home equity lenders

1. Bank of America. A particularly aggressive player in home equity lending, the megabank did $4.38 billion in loans in the first half of the year. It offers HELOCs only, but allows balances to be converted to a fixed interest rate.
2. Citizens Bank. The Rhode Island-based financial institution pulled back a bit from 2023, doing $3.85 billion in home equity business. It offers HELOCs with minimums as low as $5,000.
3. PNC Bank. The Pittsburgh-based bank did $2.7 billion in business through the first half of 2023. It promises funds in as fast as 10 days.
4. Rocket Mortgage. The giant in the on-line lender space ramped up its relatively new home equity business, doing $2.6 billion in home equity loans so far this year.
5. Figure Lending. This lender had $2.5 billion in activity through the first half of the year. Its HELOCs are rather unique in being fixed-rate products, functioning almost more like HELoans.
6. Navy Federal Credit Union. The only credit union on the list, Navy Federal did $2 billion in home equity loans and HELOCs. Its terms are generous, but it’s only open to past and present members of the military and their families.
7. U.S. Bank. The Minneapolis-based lender slowed originations this year, doing 51.9 percent less HELoan and HELOC business compared to last year. Still, it’s a big player, with $1.9 billion in lending. It generously covers all closing costs for borrowers.
8. TD Bank. The Canadian lender did $1.75 billion in home equity loans and HELOCs. It’s known for its strong customer service and competitive rates.
9. Huntington National Bank. The Ohio-based lender did $1.74 billion in HELOCs and home equity loans in the first half of the year. It’s aimed at big players: To get the best rate available on a HELOC, Huntington specifies that borrowers must be approved for $75,000 or more.
10. Discover Bank. Renowned for its cash-back credit cards, this lender booked $1.5 billion in home equity loan business. Its generous terms are geared toward borrowers with strong credit.

For more insights into institutions, check out Bankrate’s guides to Best HELOC lenders and Best home equity loan lenders.

Why home equity loans are popular now

Home equity lending is having a moment. According to the credit bureau Experian, monthly home equity loan originations rose from 137,000 per month in June 2023 to 143,100 as of June 2024, a 4.5 percent increase. HELOC balances have begun to rebound, gaining 20 percent since bottoming out at the end of 2021, the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit found.

The interest is related to interest rates. Mortgage rates have retreated in recent months, but they’re still higher than they were during the pandemic. So for homeowners, tapping equity through a cash-out refinance — once the go-to vehicle for home renovations or other needs — doesn’t make much sense today. Why pay off your 3 percent mortgage when current loans charge double that? Taking out a HELOC or home equity loan, instead of refinancing, lets you keep your low-rate mortgage in place. 

Not that home equity rates are at bargain-basement levels. The average rate on a HELOC was 8.94 percent as of Oct. 2, according to Bankrate’s survey of large lenders, while home equity loans are averaging 8.37percent. Even at these rates, though, home equity loans and HELOCs remain much cheaper than many personal loans and credit cards.

And deals do exist, especially for HELOCs. The most aggressive lenders want to win your business, and so they frequently dangle introductory rates that are a point or two below the going rate. That’s one reason why it pays to search around for HELOC offers. For example, Bank of America was advertising a promotional HELOC rate of 6.74 percent as of Oct. 2, two full percentage points below the average. Home equity financing carries other advantages. These products offer long terms, sometimes up to 30 years. And — if the funds are used for home repair or renovation — the interest can be tax-deductible.