With home equity loans making a comeback, it’s essential to highlight the top HELOC lenders in today’s market. As interest rates take a downward turn, homeowners are looking for more affordable ways to tap into their equity. The year 2023 saw a significant decline in HELOC volume, marking a stark contrast to the surge in 2022. Let’s dive into the details and explore the key players in the HELOC lending industry.
- HELOC Volume Slipped in 2023 After a Very Big Year
The year 2023 witnessed a notable drop in HELOC volume, with a 23.5% decrease from the previous year. After a robust performance in 2022, where banks and mortgage lenders issued around 1.4 million HELOCs, the numbers fell to just one million in 2023. This decline was unexpected, considering the low mortgage rates available for homeowners to leverage their equity without losing out on their existing rates.
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Top HELOC Lenders in 2023: Bank of America Was #1
In 2023, Bank of America led the pack of HELOC lenders, originating close to 64,000 lines of credit, capturing a substantial 6.2% market share. PNC Bank followed closely with nearly 53,000 HELOCs issued, making up 5.1% of the market. Citizens Bank secured the third spot, opening 49,286 HELOCs with a market share of 4.7%. The competition among the top lenders signifies a growing demand for HELOCs despite the overall decline in volume.
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Looking for a HELOC? Try a Bank or a Credit Union
When seeking a HELOC, it’s important to note that depository institutions dominate the market. Large banks and credit unions account for the majority of HELOC offerings, keeping the lines of credit on their books rather than selling them off post-origination. Nonbank lenders hold a minor share, representing only 3.7% of the HELOC market. As we move into 2024, these dynamics may shift as more companies enter the HELOC arena with innovative products and services.
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Who Are the Best HELOC Lenders Out There?
Determining the best HELOC lender can be challenging, given the plethora of products and services offered by banks and credit unions. What sets them apart are the interest rates, loan terms, and closing costs they provide. Margins and promotional rates play a crucial role in comparing HELOCs across different lenders. Keeping an eye on these factors can help homeowners secure the best deal on their home equity line of credit.
In conclusion, exploring the top HELOC lenders in the market is essential for homeowners looking to tap into their equity. With changing interest rates and evolving market trends, it’s crucial to stay informed and compare options to maximize the benefits of a HELOC. Don’t miss out on the opportunity to leverage your equity wisely in today’s dynamic lending landscape.
