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Better Mortgage offers a home equity line of credit (HELOC), and is a strong choice for homeowners who are looking for a relatively quick and easy approval. 

In this guide, we’ll cover what Better Mortgage offers, how its rates and fees stack up, who qualifies and how it compares to other lenders. 

Is Better Mortgage the Right Fit for You?

Better Mortgage is an AI-powered mortgage provider that offers new home loans, refinancing options and HELOCs. 

It’s ideal for: 

• Customers who have credit scores of 680 or higher.
• Quick customized rates and pre-approval thanks to their AI system, with a decision in as little as 24 hours. 
• Accessing up to 90% of your home equity in as little as seven days. 

It’s not ideal for:

• People with credit scores under 680. 
• Anyone who needs funding faster than seven days.
• Those who need more than $500,000 in funds. 
• People who don’t want to draw the minimum $50,000 withdrawal at funding. 

Pros and Cons of Better Mortgage Home Equity Products

There are both pros and cons of Better Mortgage’s HELOC products. 

The pros include: 

• Quick decisions and funding time if your application is approved.
• Access funds up to 90% of your home value, with a maximum $500,000 line of credit. 
• Only pay interest on the amount you’ve withdrawn from the line of credit.
• They claim to offer competitive interest rates, though it’s important to get multiple quotes. 
• No prepayment penalties if you decide to pay the loan off early. 
• The “Better Forever” program, which will waive origination fees on future loan products through the Better Mortgage company. 
• No annual fees or application fees. 
• Strong customer support through phone and email. 

The cons include:

• It can take seven days or more to receive funding.
• The company doesn’t publish current interest rates publicly, requiring a customized quote or speaking to a specialist to learn more about their current interest rates. This can make it a little more difficult to shop around. 

What Types of Home Equity Products Does Better Mortgage Offer?

Better Mortgage offers a home equity line of credit (HELOC) and a home equity loan.

The home equity line of credit offers: 

• Adjustable rates, which vary depending on market conditions but can start as low as 7%. 
• 10-year draw periods and 20-year repayment periods. 
• Options to convert your balance to a fixed rate with a Better home equity loan. 
• Flat origination fee of $595.

The home equity loan offers:

• Options for 15, 25, and 30 year terms. 
• Fixed rate loans, with interest rates that currently can start as low as 7%. 
• No prepayment penalty fees and competitive origination fees.
• Loans for primary, secondary, and investment homes available. 

What Rates and Discounts Can You Get?

• Typical APR Range: Starts at 7% but depends on current market rates and lender financial and credit history. 
• Better Forever program: Waive origination fees on future loan products (such as if you convert your HELOC to a fixed home equity loan down the road) 

Are There Fees or Closing Costs?

Better Mortgage only charges a flat rate fee of $595 on all HELOCs, regardless of approved funding. There are no application fees or annual fees, and Better Mortgage doesn’t charge any prepayment penalties or early closure fees. 

There may be an appraisal fee or title fees, depending on your exact circumstances and loan requirements.

Who Qualifies for a Home Equity Product?

To quality for a Better Mortgage home equity product, you’ll likely need to meet the following criteria: 

• Credit score: Minimum 680
• Equity requirement: Typically between 15-20%, but it depends on the loan balance
• Other requirements: May include proof of income and a low debt-to-income ratio

Better Mortgage is a self-employment-friendly lender, and will look through multiple sources of income even outside standard W-2s during the underwriting process. 

What’s the Application Process Like?

You can apply for a HELOC online through Better Mortgage’s website. If you need help during the process, you can call their customer support line to speak with a specialist.

Prequalification does require a soft credit pull, but you can get preapproval in as little as 24-hours and funding as quickly as seven days.

The documentation you need will depend on your financial status, but may include:

• Proof of identify.
• Proof of income, including recent tax returns, recent pay stubs, and P&L statements for business owners.
• Current mortgage statement.
• Appraisal to estimate current home value. 
• Property tax information. 
• Bank statements and retirement account information. 

How Does Better Mortgage Compare to Other Lenders?

Final Verdict: Should You Choose Better Mortgage?

Choose Better Mortgage if:

• You’re an existing customer, which could result in waived origination fees. 
• You want quick funding and an entirely online application process. 
• You get a competitive rate.
• You want to leverage equity on a primary, second, or investment home. 

Look elsewhere if:

• You don’t meet the minimum credit requirements. 
• You prefer a fully fixed-rate product. 

It’s always a good idea to shop around for lenders to determine who can offer the best loan terms and most competitive interest rates. This is no exception. 

Key Takeaways

Better Mortgage offers HELOC and home equity loan products with relatively competitive rates based on market conditions and your financial standing. They charge no application or annual fees, and don’t have any early closure fees.

They do have a minimum credit score requirement of 680, and many users will qualify if they have 15-20% of their home equity and proof of reliable income. 

While they don’t publish a lot of information publicly, their customer support team was happy to answer any questions we had about the loan products and were quickly available. 

It may be best for customers who already have Better Mortgage products, those who have good credit, or those who want a streamlined application process.

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