LendingTree provides a marketplace for connecting consumers to multiple loan offers. LendingTree providers work on providing the best rates and terms for a home equity line of credit (HELOC), home equity loan, new mortgage or mortgage refinancing. Borrowers fill out one application and will have five qualified lenders sending quotes based on the borrower's credit information.

A home equity line of credit is an excellent option for more significant purchases like home renovations and additions, educational funds, wedding and debt consolidation to clear off high-interest debt. 

Once you've entered your personal information like credit score (require good to excellent), debt to income ratio (under 45%) and annual income, LendingTree will match you in minutes with lenders.

The HELOC draw period can range from 10 to 25 years with fixed or variable rates starting near 4.25% (interest rates are changing fast right now). Once you have received your credit line offers, verify the draw period the lender is offering and your options with fixed and variable rates. Find out if there are penalties or minimum loan amounts. Many lenders and banks require large minimum amounts. Ask about closing fees, current interest rates charges, and origination fees. With so many lenders in one offering, you should not have to apply anywhere else. 

LendingTree's comparison tool works with top US banks like Bank of America and US Bank as well as many subprime lenders. We stopped counting mortgage lenders at 1,500 that provide options to consumers.

Why Apply for Home Equity Loan

There are Pros and Cons with taking out a home equity line of credit vs. a home equity loan. If you require more information on HELOC and home equity loan, we have provided a line of credit review page to help explain the difference. 

Pros include:

  • Lower Interest Rate – HELOCs allow you to borrow money at a lower interest rate than most unsecured personal loans and credit cards. 
  • Lower Costs – HELOCs usually have lower closing costs and upfront costs compared to home equity loans or second mortgages.
  • Money On Demand – A Home Equity line of credit allows you to draw down money when you need it up to 20 years
  • Interest only Payments – Some lenders in the LendingTree group will offer the ability to make interest-only payments during the draw period
  • Tax Deductible – Interest paid on your HELOC may be tax deductible if used for home renovation. Check with your accountant/tax adviser to be sure

Cons include: 

When you receive your offers, the terms may vary by lender. Shop around to make sure you find the draw length that is best for you. 

  • Debt – A line of credit is a loan and when you start drawing the money out, you start incurring interest expense. It's easy to leave it and forget it. We recommend that you start paying off the principal right away instead of interest only payments.  
  • Unpaid Expense – This interest expense could build for 20 years if you do not pay it off 
  • Variable Interest Rate –  Interest rate can go up or down and when interest increases, your payment will as well. Lenders offer interest rate caps so make sure to look for this.
  • Fees – Read through all of the fees on usage, closing, and early repayment.
  • Minimums – Does the lender require a minimum loan amount? If so, search for a lender with lots of flexibility or apply for unsecured personal loans up to $100,000 or home equity loan.

Terms and Conditions

Loan Amounts Credit Line Will Depend on the equity in your home.
Required Credit Score All lenders require that applicants have good to excellent credit and that they have a history of paying their debts on time.
Minimum Annual Income $25000
Types of Income Salaried, Self-employment (all with proof of income) Lenders look for a strong income.
Variable Rate Option Yes, HELOC's only offer variable rates
APR Range Rates Vary depending on Loan Amount borrowed. Some lenders offer adjustable-rate caps so you have the security knowing your rate can't exceed a certain amount.
Loan Term Varies from lender to lender.
Repayment Schedule Varies as to individual lender
Credit Inquiry Initial Inquiry - soft, Loan acceptance - hard inquiry
Fees and Closing Costs Varies as per lender
Secured Loans Secured loan
Co-Signer Yes
Direct Deposit Borrow as needed
Loan Purpose Funds needed for debt consolidation, college tuition, home renovations, vacation or second home
Qualifications LTV - 80%, DTI- low ratio between debts and income, have other assets
Allows Military Yes
Insurance Mortgage Insurance -varies with each lender
Legal Documents Required U.S. Citizen, permanent resident
Number of Offers Up to 5
Customer Service Phone, fax, email

In Our View

LendingTree's marketplace of lenders is well positioned to offer the best options for home equity lines of credit, home equity loans, and mortgage refinancing. 

We researched the reviews (see references below) on Trust Pilot and Consumer Affairs and found over 6000 reviews. The two main issues from borrowers were:

  1. Continued phone calls from lenders after you have completed the process. LendingTree responded to these complaints with the following response:

Thank you for bringing this to our attention. If you are still receiving unwanted calls please email us at LendingTreeSocial@LendingTree.com and we can add you to our DNC list.

Also, if you are able to tell us names or company names of those who were rude that would be helpful.

  1. The lenders complete a hard inquiry on your credit score.  We have researched the damage hard inquiries have on your credit score when you are searching for a good deal for mortgage products or auto loans. 
Does the Credit Score formula treat all credit inquiries the same?
Fair Isaac Corporation MyFICO: Credit Education

No. Research has indicated that FICO Scores are more predictive when they treat loans that commonly involve rate-shopping, such as mortgage, auto, and student loans, in a different way. For these types of loans, FICO Scores ignore inquiries made in the 30 days before scoring. So, if you find a loan within 30 days, the inquiries won't affect your scores while you're rate shopping. Also, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. If your FICO Scores find some, your scores will consider inquiries that fall in a typical shopping period as just one inquiry. For FICO Scores calculated from older versions of the scoring formula, this shopping period is any 14-day span. For FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45-day span.

Contact

Customer Service 1-800-813-4620

HoursMonday-Thursday

  • 8 a:m: - 9 p:m: EST

 Friday

  • 8 a:m: - 8 p:m: EST

 Saturday

  • 10 a:m: - 7 p:m: EST

Write

LendingTree, LLC

11115 Rushmore Drive

Charlotte, NC

28277 

Anchor
  1. Effect of a Hard Inquiry on your Credit Score MyFICO - Effect of a Hard Inquiry on your Credit Score MyFICO acquired July 2018
  2. Consumer Affairs Lending Tree Review - Consumer Affairs Lending Tree Review Acquired July 2018
  3. TrustPilot LendingTree Review - https://www.trustpilot.com/review/www.lendingtree.com?page=297 acquired July 2018