A home equity loan is a way to finance repairs, college education, or medical bills as well as other major expenses. The equity of the homeowner is used as a collateral to procure a loan. Depending on the amount needed and your eligibility, the term, as well as the Annual Percentage Rate (APR), are decided by the lender. The following are the top four lenders for home equity loan in 2018:
- Lending Tree
This is one of the most trusted lenders. You may opt for a home equity loan or even a home equity line of credit with them. Their portal is simple to use, where you would just need to feed in the essential details to get the best rates. They have a speedy process, and you will get your loan within a matter of days if you fit their eligibility criteria.
- U.S. Bank
The home equity loan rates offered by the U.S. Bank are 4.89% APR for a 10-year term and 5.34% APR for a 15-year term. These rates require you to fulfill specific eligibility criteria, and you may check their portal to find out if you may get a loan from one of the most trusted banks in America.
Citibank offers a lucrative fixed rate of 7.09% APR for a loan taken for a 30-year term and 6.59% APR for a 10-year term. If you find that a line of credit with this lender will be more convenient for you, you may opt for that as well.
- Citizens Bank
Citizens Bank is a trusted name in the list of lenders for the home equity loans as well as home equity line of credit. They have some strict eligibility criteria, but a varied list of APRs as well as terms available for you to choose from. You may choose the required loan amount starting from $10,000 to $4,00,000 and then decide the required term to get a varied APR.
The application process for a home equity loan may take anywhere from a few days to a few months. After the process of paperwork, the borrower gets a loan in the form of a predetermined amount, which is a certain percentage of the value of the equity. Since this is a loan you get against your house, it is also known as a second mortgage. However, you may only take a home equity loan when the mortgage is clear.