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The pandemic-fueled real estate boom spurred massive appreciation in home values – and in home equity stakes. The average mortgage-holding homeowner now has an eye-opening $311,000 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 are generally higher than mortgage rates, they can be an attractive way to tap home equity.
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
- Bank of America. A particularly aggressive player in home equity lending, the megabank did over $9 billion in loans in 2024. It offers HELOCs only, but allows balances to be converted to a fixed interest rate.
- Citizens Bank. The Rhode Island-based financial institution pulled back a bit from 2023, doing $8.1 billion in home equity business. It offers HELOCs with minimums as low as $5,000.
- PNC Bank. The Pittsburgh-based bank did $5.7 billion in business in 2024. It promises funds in as fast as 10 days.
- Figure Lending. This online lender generated $5.34 billion in activity in 2024. Its HELOCs are fixed-rate products, functioning almost more like HELoans.
- Rocket Mortgage. The pioneering giant in online lending ramped up its relatively new home equity business, doing $5.3 billion in home equity loans in 2024.
- Navy Federal Credit Union. The only credit union on the list, Navy Federal did $4.3 billion in home equity loans and HELOCs. Its terms can be favorable, but it’s open only to past and present members of the military and their families.
- U.S. Bank. The Minneapolis-based lender recorded $4 billion in lending. One of its selling points: It covers all closing costs for borrowers.
- Huntington National Bank. The Ohio-based lender did $3.58 billion in HELOCs and home equity loans in 2024. 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.
- TD Bank. The Canadian lender did $3.2 billion in home equity loans and HELOCs. It’s known for its strong customer service and competitive rates.
- Discover Bank. A familiar name for its cash-back credit cards, this lender booked $2.9 billion in home equity loan business. Its 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, national HELOC debt was up to $360 billion at the end of 2024, and average HELOC balances increased by 7.2 percent in 2024, marking the third consecutive year that they’ve grown — after a decade of decline.
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 7.9 percent as of April 2, according to Bankrate’s survey of large lenders, while home equity loans were averaging 8.4 percent. 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, Third Federal Savings marketed a 6.99 percent HELOC rate as of April 2, nearly a full percentage point 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.
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