-
Step 1
Determine your needs. Before searching for a lender, it's important to know what type of home equity best fits your situation: a home equity loan (HEL) or a home equity line of credit (HELOC). A home equity loan is for a set amount, with a set monthly payment and payoff date. A line of credit is a revolving account with an available balance that you can draw upon.
-
Step 2
Know how much money you're going to ask for. The equity in your home is a deciding factor in how much money you're able to receive.
-
Step 3
Contact your current mortgage holder. Your current mortgage company may have special rates to refinance your first mortgage, allowing you to take the equity from the refinancing, or they may offer home equity loans or lines of credit. You can negotiate with your mortgage lender because you are a current customer and they know your credit and repayment histories.
-
Step 4
Use an online loan comparison website, such as E-LOAN, Bankrate or Lending Tree (see Resources below). These sites can offer you a loan based on their rates and costs or compare them among other home equity lenders.
-
Step 5
Consider your neighborhood banks. Small local banks cater to their customers, offering competitive home equity packages.
-
Step 6
Talk to close friends or family members. Ask if they have a HEL or HELOC and which lender they chose to go through. Also ask about their experiences-good or bad-with that lender.
