The 5 Best Home Equity Loans for 2022-2023
Hello Sahabat LoanPlafon.id, we understand that homeowners sometimes need extra cash for home renovations, education, or debt consolidation. If you have equity in your home, consider applying for a home equity loan. In this article, we present the 5 best home equity loans for 2022-2023.
What are Home Equity Loans?
Home equity loans let homeowners borrow money using their home as collateral. You receive a lump sum of cash, which you pay back with interest over a fixed term. Home equity loans usually have lower interest rates than credit cards or personal loans because the lender takes less risk by securing the loan with your home.
How to Qualify for a Home Equity Loan?
To qualify for a home equity loan, you need to have enough equity in your home. Equity is the difference between the current market value of your home and the amount you still owe on your mortgage. Lenders typically require a minimum credit score of 620 and a debt-to-income ratio below 43%. Some lenders may also require a minimum income or a certain number of years of homeownership.
Chime is an online bank that offers home equity loans with no fees or prepayment penalties. You can borrow up to $600,000 with a fixed interest rate starting at 3.25% APR. Chime also offers a 30-day rate lock, which means your interest rate won’t change during the application process. You can apply online in minutes and receive a decision within seconds.
Figure is a technology company that specializes in home equity loans. You can borrow up to $500,000 with a fixed interest rate starting at 2.49% APR. Figure also offers a fast and easy application process that can be completed entirely online. You can receive your funds within 5 days of approval. Figure charges an origination fee of up to 4.99% of the loan amount.
3. PenFed Credit Union
PenFed Credit Union is a member-owned financial institution that offers home equity loans with low rates and flexible terms. You can borrow up to $500,000 with a fixed interest rate starting at 2.99% APR. PenFed also offers a 20-year term and the option to borrow up to 100% of your home’s value. You can apply online or at one of PenFed’s branches nationwide.
Better.com is an online mortgage lender that offers home equity loans with competitive rates and a fast application process. You can borrow up to $500,000 with a fixed interest rate starting at 3.475% APR. Better.com also offers a 45-day rate lock, which means you can secure your rate while you complete your application. Better.com charges an origination fee of up to 5% of the loan amount.
5. Bank of America
Bank of America is a national bank that offers home equity loans with competitive rates and flexible terms. You can borrow up to $1 million with a fixed interest rate starting at 3.24% APR. Bank of America also offers a 10-year draw period and the option to borrow up to 85% of your home’s value. You can apply online or at one of Bank of America’s branches.
In conclusion, home equity loans can be a smart way to access cash when you need it. By using your home as collateral, you can borrow at a lower rate than with other types of loans. Our top picks for the best home equity loans in 2022-2023 are Chime, Figure, PenFed Credit Union, Better.com, and Bank of America. Remember to shop around and compare rates and fees before making a decision. Thank you for reading and see you in our next informative article.