Home-equity loan lenders, compared
No lender fits everyone. The right one gives you the lowest all-in fixed rate.
- The right lender gives you the lowest all-in fixed rate, with the fewest fees, for the term you need.
- Compare the fixed APR, the closing costs (some lenders waive them), and the term options.
- Start with your own bank or credit union. A relationship rate can undercut a headline offer.
- The catch: a low headline rate can carry closing costs that erase the savings. Compare the all-in cost over the full term.
How a home-equity loan works, and what to compare
A home-equity loan is a second loan against your house. You get a lump sum and pay it back over a fixed term at a fixed rate. The rate is set by your credit, your equity, and the lender. So the same borrower can get very different offers.
Three numbers decide the cost. The fixed APR, the yearly cost of borrowing as a percent. The closing costs, the fees you pay to open the loan. And the term, how long you have to pay it back. A longer term lowers the monthly payment but raises the total interest.
| Lender | Fixed APR / fees | Terms | The catch |
|---|---|---|---|
| Your own bank or credit union Compare first | Varies Relationship rate possible |
Set by lender | Rate depends on your existing relationship. Get this quote before any headline offer. |
| Discover | from 7.99% no closing costs |
10–30 yr | No closing costs, but the lowest advertised rate needs strong credit and low use of your equity. |
| Navy Federal Credit Union | from 7.34% low or no fees |
5–20 yr | You have to be a member. Membership is tied to military service or a family link. |
| Spring EQ | from 8.25% closing costs apply |
5–30 yr | Works with thinner files and higher equity use, but closing costs raise the all-in price. |
Discover. Discover advertises no closing costs on its home-equity loan, which removes a large upfront charge. That helps most when you plan to keep the loan a long time. The lowest rate goes to strong credit and borrowers who tap little of their equity. Read the Discover review.
Navy Federal Credit Union. Navy Federal often posts low rates and light fees. The gate is membership. You qualify through military service, veteran status, or a family member who already belongs. If you fit that, it is worth a quote. Read the Navy Federal review.
Spring EQ. Spring EQ tends to work with borrowers who have thinner credit or want to use more of their equity. That access has a price. Closing costs apply, so compare the all-in cost over the full term against a no-fee lender. Read the Spring EQ review.
A low headline rate can carry closing costs that erase the savings. A rate that looks lower can cost more once the fees are counted.
Compare the all-in cost over the full term, not the rate alone. Run each offer through an APR calculator and read what a home-equity loan really costs before you sign.