Now that tapping home equity is again in trend, I figured it’d be useful to see who the highest HELOC lenders are.

That is particularly well timed with the prime price lastly falling after 11 successive hikes, making these loans cheaper once more!

As you most likely know, the 12 months 2023 was a tough one for mortgage lenders due to a lot increased rates of interest, and second mortgages have been impacted as nicely.

The most recent annual figures from the Client Monetary Safety Bureau (CFPB) revealed that HELOC quantity fell from 1.4 million items in 2022 to only 1 million in 2023.

That’s fairly the drop-off, which the company attributed to a type of leveling off after quantity surged in 2022 when householders gave up on cash-out refinances.

HELOC Quantity Slipped in 2023 After a Very Huge 12 months

As famous, HELOC quantity reversed course fairly markedly in 2023 (the newest full 12 months of information at present obtainable as of early 2025), falling 23.5% after a really robust 12 months in 2022.

Banks and mortgage lenders doled out about 1.4 million home equity lines of credit (HELOCs) in 2022, per the newest HMDA information, however solely about a million in 2023.

That 2022 whole was 41.2% increased than the 962,000 HELOCs opened in 2021, and the second consecutive annual improve after a number of years of falling volumes.

I anticipated HELOC functions to point out will increase once more in 2023 and 2024 since mortgage rates on present mortgages are so low relative to what’s obtainable immediately.

In any case, householders can faucet into their fairness with out shedding that 2-4% price on their first mortgage. The identical can’t be stated of a cash out refinance, wherein you quit your outdated price within the course of.

However they didn’t maintain up in 2023, maybe as a result of 2022 was such a powerful 12 months. Observe that they did nonetheless surpass 2021 ranges although.

Anyway, let’s speak a have a look at who the highest HELOC originators have been in 2023 (most up-to-date 12 months obtainable).

High HELOC Lenders in 2023: Financial institution of America Was #1

In 2023, Financial institution of America led all HELOC lenders with practically 64,000 traces of credit score originated, representing a strong 6.2% market share, per HMDA information from the CFPB.

Again in 2020, BofA had been the #1 HELOC lender with a 5.6% market share earlier than falling to fifth in 2021 and again to 3rd in 2022. In order that they’ve made up numerous floor after which some.

They have been adopted by PNC Financial institution with practically 53,000 HELOCs originated for a 5.1% share.

In third was Residents Financial institution  (49,286) with a market share of 4.7%.

Huntington Financial institution took fourth with 26,175 HELOCs opened and a 2.5% market share, adopted by Truist Financial institution with 25,870 traces of credit score opened for the same market share.

The one nonbank within the high 25, apart from United Wholesale Mortgage, was Determine Lending, which got here in sixth with a 2.4% market share.

You may see the highest 25 HELOC lenders within the desk above for extra particulars. These 25 establishments alone accounted for about 44% of the HELOC market total.

Observe that for some purpose the CFPB is lacking one of many top-25 entries and I’m undecided which one.

For reference, I’ve saved the 2022 numbers on this put up as nicely should you’re curious concerning the year-to-year motion, which you’ll be able to see beneath.

In 2022, PNC Financial institution was #1, adopted by Residents Financial institution after which BofA.

PNC Financial institution Was the High HELOC Lender in 2022

On the lookout for a HELOC? Attempt a Financial institution or a Credit score Union

Should you’re in want of a HELOC, it’s best to know that they’re principally provided by depository establishments (DIs).

In 2023, all however three of the highest 25 HELOC lenders have been DIs and not one of the DIs have been thought of small banks.

In different phrases, virtually each HELOC was opened by a big financial institution or a credit score union as a result of they preserve the traces of credit score on their books as a substitute of promoting them off after origination.

This differs from first mortgages, which have been dominated by nonbank lenders over the previous a number of years.

These nonbank lenders, or non-DIs, together with Determine, UWM and Homebridge, accounted for simply 3.7% of the HELOC market. This quantity has ticked increased lately, however nonetheless stays very low.

It’s unclear if that may change in 2024 and past, although these firms wish to get in on the motion by providing HELOCs and home equity loans.

For instance, Rocket Mortgage launched a closed-end dwelling fairness mortgage (HEL) in early August of final 12 months.

[Three Key Differences Between HELOCs and Home Equity Loans]

In the meantime, wholesale lender United Wholesale Mortgage (UWM) launched three HELOCs, together with a standalone and a piggyback.

Regardless, there’s probability an area credit score union (or the financial institution you already do enterprise with) will supply HELOCs.

Tip: Credit score unions additionally appear to supply a wide selection of adjustable-rate mortgages as nicely, not like massive banks and nonbank lenders.

Who Are the Greatest HELOC Lenders Out There?

We all know it’s principally banks and credit score unions that provide HELOCs. The query is which one is the perfect of the bunch?

That’s arduous to say as a result of banks and credit score unions supply numerous completely different merchandise, not simply HELOCs.

As such, studying their evaluations most likely gained’t give us lots to chew on. Certain, we are able to see how they’re rated on the entire, however which may imply nothing with regard to their dwelling fairness lending.

In the end, I might pay extra consideration to the rate of interest and mortgage phrases provided since HELOC charges can vary considerably from financial institution to financial institution.

And the closing prices! Many of those banks and CUs supply HELOCs with little to no closing prices.

Additionally preserve your eye on the margin provided, which mixed with the prime rate determines your price. That is maybe the best way to compare HELOCs.

Remember to be aware of the mortgage time period (what number of years to attract and pay it off) and the beginning rate of interest, which is usually discounted for a promotional interval.

There might also be distinctive perks, comparable to the power to lock in your price so it’s not adjustable.

Although the best way issues are going, HELOC rates may need already peaked in 2023. And could possibly be slated to fall much more this 12 months because the Fed continues to decrease its personal lending price.

Both manner, remember to exhaust all of your choices in your HELOC search to make sure you don’t miss out on a greater deal.

Learn extra: Can you refinance a HELOC?

Earlier than creating this web site, I labored as an account government for a wholesale mortgage lender in Los Angeles. My hands-on expertise within the early 2000s impressed me to start writing about mortgages 18 years in the past to assist potential (and present) dwelling patrons higher navigate the house mortgage course of. Comply with me on Twitter for warm takes.

Newest posts by Colin Robertson (see all)