Home equity loans allow homeowners to tap into their property’s value for various needs, such as renovations, debt consolidation, or starting a business. With lower interest rates than personal loans or credit cards, these loans can be a smart financial move, especially if the funds are used for home improvements, which may allow for interest tax deductions. This article reviews the top lenders for home equity loans, highlighting options for different borrower situations. Discover Bank stands out for those with minimal equity, requiring only 10%. Third Federal Savings & Loan offers the lowest rates, while TD Bank caters to borrowers with credit scores below 680. Flagstar Bank provides rate discounts for existing customers, and Rocket Mortgage allows for a higher loan-to-value ratio. The article also discusses alternatives to home equity loans, such as HELOCs and cash-out refinancing, along with the pros and cons of home equity loans.
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