When looking to purchase a home, many buyers turn to financing options that they feel comfortable with. For many, this may mean working with banks or credit unions, while other buyers seek out offers from financing companies they already have accounts with.
Capital One was a popular financing option for home equity loans that are popular amongst homeowners and investors alike who are looking for quick access to a large sum of money. Unfortunately, Capital One no longer offers this type of loan, leading many homeowners weighing their options for securing home equity funding.
If you’re looking for a home equity loan to replace the Capital One product, find out exactly what benefits this former loan offered, so you can compare them to alternative loans that are currently available.
What Did the Capital One Home Equity Loan Offer?
This popular loan allowed current homeowners to borrow up to $10,000 in the form of a second mortgage. This loan had slightly high but competitive interest rates and offered fixed-rates to be repaid over a period of time.
Most homeowners would use this money for home renovations, to pay medical investments, or as a down payment on an investment property. While this loan is no longer available, there are other places offering similar financing options. If you’re looking for a home equity loan and need a reliable source of funding, here are five alternative options worth exploring.
1. US Bank
This national bank offers low fee home equity loans with borrowing amounts between $15,000 and $750,000, depending on your property’s equity. Borrowers can apply for this loan in all 50 states, with physical locations available in 28 states. No closing cost options are available, with cash-out refinancing terms. There are no application fees and origination fees are optional.
2. PenFed Credit Union
This online credit union offers home equity loans to qualified homeowners. They offer lump sum options to tap into your home’s equity and provide traditional home equity loans, and different types of HELOCs (home equity lines of credit). Applicants will need to be a member of this credit union to apply, but becoming a member is relatively easy.
This popular mortgage lender offers a great home equity loan product, with a variety of discounts available for signing up for auto deductions and having existing Citi accounts. Lower introductory rates are often available and there are no application or closing cost fees. HELOCs are also available through city mortgage. Residents from all states are eligible to apply, except for those in Alaska.
4. Navy Federal Credit Union
If you’re in the military, Navy Federal provides a large variety of home equity loan options, starting at five years and spanning up to 20 years. Discounts are available for members who sign up for automatic payments, and homeowners are allowed to borrow up to 100% of their current home equity amount. Credits for closing costs are also available. On the downside, members must be a member of the military to apply, and residents in Texas do not have access to all home equity products.
5. BB&T Home Mortgage
This online home equity mortgage provider offers homeowners up to three loans for a minimum amount of $5,000 each, with fixed-rate loan options available. Discounted rates and flexible payment options are offered when homeowners initially draw $15,000 or more. There are often no closing cost fees, but if you pay off your loan in three years or less, you may be charged for closing costs. Lastly, the low introductory rate does expire after the first year.
Home equity loans are a great way to fund a new real estate investment or gain access to a large sum of cash by using your current home as collateral. While Capital One used to offer an excellent home equity loan option, there are other lenders who offer additional perks and bonuses for opening a home equity loan.
Those looking to use their loan to purchase another property should team up with a local agent with a history in investing. If you plan to use your home equity loan to purchase an investment property or second home, get in touch with a Clever Partner Agent.