Take a vacation, pay off student loans, get rid of debt and more! Home equity loans are convenient and simple for homeowners who need some extra funds. As home owners pay their mortgages each month, they are building equity against which they can borrow when needed. There are two types of home equity loans: lump sum loans and a home equity line of credit. The lump sum loan gives borrowers the entire loan amount they need, while the line of credit allows home owners to borrow money over time. Regardless of which type borrowers opt to use, they need to be sure that they can qualify based on income, credit history, and the desired loan amount. Each loan company has a different schedule of interest rates, fees, and repayment options that consumers can compare before making a final decision on which company they wish to borrow from. The best home equity loans come from LendingTree, Citibank, and Wells Fargo, helping consumers to get the extra cash they need to complete their dream projects.

LendingTree is the one of the most popular places to start for those who want to borrow against the existing equity of their home. As opposed to a bank, LendingTree is a loan broker, helping to connect borrowers with financial institutions. Once the application with LendingTree is completed, prospective borrowers can compare loan offers from a wide range of lenders, including those with the lowest fees and interest rates available. Even those with less-than-perfect credit may still be able to qualify for a home equity loan. Interest rates and fees vary depending on the borrowers’ specific situations. The minimum loan amount with LendingTree is $25,000, which might be more than consumers want to borrow, and the term of the loan can range from five years to 30 years.

Citibank is a direct lender that offers home equity loans and lines of credit at competitive interest rates. With no application fee, Citibank is a great option for those who want to borrow between $10,000 and $100,000 with traditional home equity loans. Those who want to borrow up to $200,000 will need to apply for a home equity line of credit. The variable nterest rates can be as low as four percent and as high as seven percent, with a cap of eighteen percent. The fixed annual percentage rate is between 5.99 percent and 7.74 percent. Citibank members can also score additional discounts. Citibank requires a more strict loan-to-value ratio than other lenders at 75% or less, which is the amount borrowers owe on their homes divided by the value.

Wells Fargo is a well-known financial institution with branches in 41 states. While Wells Fargo only offers only home equity lines of credit, these loans have an annual interest rate cap and a lifetime rate cap that are lower than their competitors. In addition, Wells Fargo offers fixed interest rates on home equity lines of credit. Like other lenders, Wells Fargo has an 80 percent loan-to-value ration maximum, and borrowers must have good credit histories and a debt-to-income ratio of less than 43 percent. Borrowers can apply to take out between $10,000 and $500,000, depending on how much they qualify for. Customers have ten years to draw on the money that the borrow, and can pay off they balances of their loans between five and 20 years.