BBVA Compass home equity review
Draw on the equity you’ve built in your home and pay no closing costs.
finder.com’s rating: 2.8 / 5.0
With almost 650 locations across seven states and a 22-state service footprint, BBVA is among the nation’s 25 largest banks. If you live in an area it services, BBVA could be an option to fund home improvements, go on that trip you’ve been eyeing or pull together your debts at a lower rate using your home’s equity.
|Loan products offered||Home equity loan, HELOC|
|Minimum credit score||620|
|APR range||Loan: 4.04%–9.09%, depending on terms and residence area|
HELOC: 3.99% to 18%
|Repayment terms||Loan: 5 to 30 years|
HELOC: 10-year draw, 15-year repayment on balances of $20,000 or more and 10-year repayment on balances less than $20,000
|Loan limits||Loan and HELOC: $10,000 - $500,000|
|State availability||AL, AR, AZ, CA, CO, FL, GA, ID, KS, LA, MA, NM, NV, NY, OH, OK, OR, PA, TN, TX, VA, WA|
Pros and cons of BBVA Compass
- Big-name bank. While its mortgage products are limited to certain states, BBVA is among the 25 largest banks in the US and offers a range of banking products and loan types.
- Bank-paid closing costs. BBVA covers your closing costs for all loans of at least $10,000 and for HELOCs as long as you draw $10,000 within the first 30 days.
- Variable terms and fixed rates. For home equity loans, you can choose a term of five to 15 years, or extend it to 20, 25 or 30 years for bigger loans, with a dependable interest rate over the loan’s lifetime.
- Limited service availability. BBVA home equity products aren’t available nationwide, and the bank only has branches in seven states.
- Early payoff penalty. If you pay off your loan or credit line within 24 months of opening it, you’ll have to pay back all the closing costs covered by BBVA.
- Could be costly for smaller loans. BBVA Compass home equity products offer no closing costs and discounts as long as your loan or line of credit exceeds $10,000, but rates could be higher for smaller loans.
What types of fees does BBVA Compass charge?
BBVA doesn’t charge an application fee and pays the closing costs for both home equity loans and lines of credit between $10,000 and $500,000. But you’ll be required to pay back those costs if you pay off your loan or line of credit within 24 months.
If you open a HELOC, you’ll pay a $75 annual fee after the first year and $75 each time you lock a portion of your credit line into a fixed-rate advance.
BBVA Compass requirements
To be approved for home equity product with BBVA, you must:
- Be at least 18 years old and a US citizen
- Live in one of the states where BBVA offers loans
Beyond that, BBVA says it considers the amount of equity you have in your home, your credit score, the loan-to-value ratio of your home and your debt-to-income ratio.
To apply for a BBVA Compass home equity loan, be ready to supply your:
- Personal contact information
- Employment and financial information
- Property and collateral information
- Bank account information
Additional documents may be required as your application progresses.
How to apply for a home equity loan or line of credit with BBVA Compass
Start your application on the website by following these steps.
- Visit the BBVA Home Equity page and choose Apply Now.
- Enter your personal information and select Continue.
- Provide your property information, including your employment and income details. Hit Continue.
- Add information about your bank account to make automatic payments. If you use a BBVA checking account for this, you can get 1% off your interest rate. Select Continue.
- Answer demographic questions. Hit Submit to save your application information, send it to the bank and initiate a credit check.
What types of home equity products does BBVA Compass offer?
This bank has two home equity products:
- Home equity loan. With this option, you get a lump sum payment with a fixed interest payment and make equal payments until the loan is paid off.
- Home equity line of credit (HELOC). This option is more like a credit card, with a variable interest rate and the ability to draw only what you need over the first 10 years, making interest-only payments, then repay the credit line over a 10- or 15-year period with equal payments until it’s paid off.
Other mortgage products offered by BBVA Compass
The bank offers the following additional mortgage products:
- Mortgage refinance
- Professional mortgage for medical residents, doctors, attorneys, oral surgeons, dentists and CPAs
- Home Ownership Made Easier (HOME), a $0 down payment mortgage
- Renovation loans
- Construction loans and lot loans
- Fannie Mae HomeReady
- Special mortgage services for foreign nationals
How BBVA Compass’s home equity products compare to other lenders
BBVA offers both a fixed-rate home equity loan and a variable-rate line of credit. It allows you to convert three separate draw amounts of at least $2,500 from your HELOC to fixed-rate portions with fixed monthly payments. But you’ll pay a $75 fee for each conversion.
If you use a BBVA checking account for automatic payments, you can get 1% off your interest rate. Reduce your rate even more by making a large initial draw within the first 15 days of your HELOC opening and maintaining that balance for three pay periods. You get 0.50% off for draws of $35,000 to $49,999 and a 1% discount for drawing $50,000 or more.
Compare home equity loan and HELOC options
Compare these lenders and lender marketplaces by the type of home equity product you’re searching for, state availability and minimum credit score. Select See rates to provide the company with basic property and financial details for personalized rates.
BBVA Compass reviews and complaints
BBVA Compass is not an accredited business with the Better Business Bureau (BBB), but as of May 2021, it has an A+ rating with the BBB for responding to 1,177 complaints over the last three years. The bank has earned an average of 1.05 out of 5 stars from customer reviews.
The bank doesn’t score much better on Trustpilot, where it has just 23 reviews and a TrustScore of 1.9 out of 5 stars.
These scores are for the bank overall and not specific to mortgages. Generally, BBVA customers praise its friendly in-person customer service and the speed and ease of its online platform.
However, some complain of miscommunications between BBVA loan officers, hindering the loan application process. Some BBVA customers had to repeatedly call to follow up on their loan’s status and criticized BBVA’s disorganized approach to the loan closing process.
BBVA is a big-name bank offering a wide range of mortgage products — including home equity loans — to a limited service area. It covers the closing costs on most of its home equity loans and lines of credit, but you’ll owe these costs back if you pay off your loan too early. And if you live outside its service area, you’ll need to shop around for another lender.