What We Learned
Excellent educational materials and clear process for obtaining a loan or line of credit.
Stricter debt-to-income and loan-to-income requirements than most lenders.
Capital one offers a number of products that access your home equity. Their rates and fee structures are very competitive, and their website has lots of helpful information, so you’ll understand the process before you start it. As a result, Capital One is one of the best home equity lenders that we’ve reviewed.
Rates and Fees
Capital one offers very competitive rates on home equity loans and lines of credit. Their lines of credit are variable rate 4.13 as of this review, and they don’t involve any closing costs. The rates on their home equity loans are also very good, ranging from 4.83% for a 5 year term, to 5.21% for a 10 year term, with 15 and 20 year loans at 4.94%. As with their home equity line of credit, Capital One does not have any closing costs on their home equity loan products.
Capital one has a stricter debt-to-income calculation than most other lenders, and they also evaluate potential customers along a loan-to-income metric, which can help individuals who have recently developed a stronger income stream but who may have had credit issues in the past. The credit score and loan-to-value requirements for Capital One are on par with other lenders of their size. It is important to note that Capital One operates in many states, and each state has different guidelines that regulate financial products, so the eligibility requirements in one state may be different to those in another.
In order to get a loan you will have to have a house inspection and appraisal to determine its overall value. This will help Capital One determine exactly how much equity is in your home. If property values have gone up since you bought your home then you may be able to access a bigger loan than you had suspected. The loan minimums were higher for Capital One than for many other lenders that we reviewed, but so were the maximums, which makes Capital One a good option if you live in a more affluent area and need more money to improve or repair your home.
The Capital One website has one of the best layouts that we saw. There is plenty of information, running from basic answers to questions like “What is home equity?” all the way to more complex information that is intended to help you determine what the best product is for you. There are a number of calculators to assist your predictions, and Capital One has a checklist and walk through guide that explains what the different steps are for getting a home equity loan or line of credit, and what paperwork and steps you need to take to be ready. As a result, customers can save time and money by ensuring they have all the necessary documentation before it is needed.
Capital One is a good place to look for a home equity loan or line of credit, they offer competitive rates and a number of different repayment options, which makes their products among the most flexible of those we reviewed. Moreover, the information on their website makes the process of obtaining a loan or line of credit easy to understand and prepare for.