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Last updated: February 25, 2026

Capital One No Longer Offers Home Equity Loans Compare Top Alternatives for 2026

Capital One exited home lending in 2017. Compare today's best home equity loan and HELOC rates from top-rated, vetted lenders — free and no obligation.

7.3% avg HELOC rate
3 Fed cuts expected
6+ vetted lenders

Why Capital One No Longer Offers Home Equity Products

In November 2017, Capital One announced its exit from the residential mortgage business, including home equity loans and HELOCs. The decision affected over 900 employees and was part of a strategic shift to focus on credit cards, auto loans, and digital banking.

Existing home loans were transferred to servicers including Bank of America and Mr. Cooper. In July 2025, after acquiring Discover Financial, Capital One also wound down Discover Home Loans — meaning neither brand accepts new home equity applications.

If you were looking for Capital One home equity products, the lenders below offer competitive alternatives with online applications, transparent rates, and no-obligation comparisons.

Fed expected to cut rates 3 times in 2026 — Bankrate HELOC rates forecast to average 7.3% in 2026 — CBS News 85% probability HELOC rates fall this year — Navy Federal Credit Union Mortgage rates may fall below 6% for first time in 3+ years — Bankrate Fed expected to cut rates 3 times in 2026 — Bankrate HELOC rates forecast to average 7.3% in 2026 — CBS News 85% probability HELOC rates fall this year — Navy Federal Credit Union Mortgage rates may fall below 6% for first time in 3+ years — Bankrate

Today's Best Home Equity Rates

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Why Smart Homeowners Are Tapping Equity Now

Rates Are Declining

The Fed cut rates 3 times in late 2025 and is projected to cut 3 more times in 2026. HELOC rates could drop a full percentage point this year.

Lock In, Then Refi Later

Many borrowers are using home equity products now to access funds, then refinancing to a lower rate once the Fed reduces rates further — a proven short-term strategy.

Home Values Remain Strong

Despite economic uncertainty, home prices have held steady. The average homeowner has significant untapped equity — accessing it now while values are high is a strategic move.

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Expert Answers

Capital One Home Equity: Your Questions Answered

Expert answers to the most common questions

Reviewed by financial editors
01
Does Capital One still offer home equity loans or HELOCs? Most Asked

No. Capital One exited the residential mortgage and home equity business in November 2017. The bank no longer originates or services any home loans. In July 2025, Capital One also wound down Discover Home Loans (acquired through its purchase of Discover Financial). If you had an existing Capital One home loan, it was transferred to a new servicer such as Bank of America or Mr. Cooper.

02
What are the best alternatives to Capital One for home equity loans?

Several top-rated lenders offer competitive home equity loans and HELOCs. The lenders listed above are vetted by our editorial team and ranked based on rates, fees, customer service, and loan terms. Many offer online applications with quick approvals and no obligation to proceed.

03
What is the difference between a home equity loan and a HELOC?

A home equity loan gives you a lump sum at a fixed interest rate with predictable monthly payments — ideal for one-time expenses like renovations. A HELOC (Home Equity Line of Credit) works like a credit card secured by your home: you draw funds as needed during a set period, typically at a variable rate. HELOCs offer more flexibility but your payment can change as rates move.

04
What credit score do I need for a home equity loan?

Most lenders require a minimum credit score of 620-680 for home equity loans, though requirements vary. Higher scores (740+) typically qualify for the best rates. You'll also need at least 15-20% equity in your home and a debt-to-income ratio below 43%.

05
Is now a good time to take out a home equity loan?

Home equity rates are expected to average 7.75% in 2026, with HELOCs averaging 7.3% — potentially the lowest levels since 2023. The Federal Reserve is projected to cut rates up to three times in 2026, which could drive HELOC rates even lower. Many homeowners are using home equity products now with the strategy of refinancing to a lower rate later as conditions improve.

06
How much can I borrow with a home equity loan?

Most lenders allow you to borrow up to 80-85% of your home's appraised value minus what you still owe on your mortgage. For example, if your home is worth $400,000 and you owe $250,000, you could potentially borrow up to $70,000-$90,000 (80-85% of $400K = $320K-$340K, minus $250K owed).

07
Are home equity loan rates expected to drop in 2026?

Yes. Most analysts forecast home equity loan rates declining through 2026. Bankrate projects rates averaging 7.75% with a low of 7.5%. HELOC rates could drop a full percentage point as the Fed lowers the federal funds rate. Navy Federal Credit Union estimates an 85% probability that HELOC rates will fall this year.

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