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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.
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.
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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.
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.
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.
Expert answers to the most common questions
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.
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.
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.
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%.
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.
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).
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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