Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Valley National Bank Home Equity Review Updated Dec 08, 2023 9-min read Reviewed by Stephanie Colestock Reviewed by Stephanie Colestock Expertise: Loans, insurance, real estate investing, credit, debt Stephanie is an experienced personal finance writer with more than a decade of experience as a freelancer. Learn more about Stephanie Colestock Founded in 1927, Valley National Bank is a regional entity with more than 230 branch and office locations across the country. It serves customers in Alabama, California, Florida, Illinois, New Jersey, New York, and Pennsylvania with products and services such as personal and business banking, home mortgage loans, and home equity products (including home equity lines of credit, aka HELOCs). Since its founding, Valley National Bank has never reported a losing quarter. As of March 2023, it holds more than $47.6 billion in assets and $57 billion in deposits. View Rateson Valley National Bank’s websiteEditorial RatingEditorial RatingWhat we like:Introductory interest rates for the first year of your HELOC.Rates (APR)Starting at 5.49% fixed (for 12 months), then as low as 7.25% variableLoan amountsUp to $1 millionRepayment terms30-year HELOC (10-year draw; 20-year repayment)Minimum credit scoreNot disclosedSee how Valley National Bank compares to other home equity lenders.Best HELOCs In this review: How does Valley National Bank help me access my home equity?Pros and cons of a Valley National Bank HELOCWhat do Valley National Bank’s customers say?Do I qualify for a HELOC from Valley National Bank?How do I apply with Valley National Bank?How does Valley National Bank determine how much I can borrow?What does the appraisal process look like?Does Valley National Bank charge any fees?Does Valley National Bank have a customer service team? How does Valley National Bank help me access my home equity? If you have equity in your home, you can access it through a home equity loan or line of credit. Valley National Bank’s website mentions HELOCs and home equity loans but only offers additional information about its HELOC. A Valley National Bank HELOC gives you access to a 10-year draw period and a credit line as high as $1 million, depending on your home equity and whether you qualify. A typical 20-year repayment term follows this draw period. You can take out a HELOC for up to $350,000 at the interest rates and terms published online. For larger lines—from $350,000 to $1 million—contact a Valley National Bank representative for more information about rates, terms, and borrower requirements. Valley National Bank HELOC termsRates (APR)As low as 5.49% for the first 12 monthsRate discounts0.25% discount if Valley holds the first lien0.25% discount if the combined LTV is less than 70% Loan amountsUp to $1 millionDraw period10 yearsRepayment period20 yearsMaximum LTVNot disclosedMinimum credit scoreNot disclosedMinimum incomeNot disclosedFeesAnnual fee: $75Early termination fee (if cancelled within the first 15 or 36 months): Varies by state Pros and cons of a Valley National Bank HELOC When considering any financial product, it’s wise to be aware of the pros and cons. We’ve researched both for a Valley National Bank HELOC. Pros Lines of credit up to $1 million. Lower introductory rates for the first 12 months. Low minimum draw of just $500. Cons Many details (including loan limits and certain borrower requirements) aren’t disclosed online. Early termination fees may apply if canceled before 15 or 36 months. Annual fee of $75 applies to open HELOCs. What do Valley National Bank’s customers say about the company? SourceRatingNumber of reviewsBetter Business Bureau1 out of 5 stars9 Ratings collected on March 5, 2023. Researching a bank’s products and services is crucial to understanding what’s available. Knowing what customers say about the bank and its products is a logical next step. Published customer ratings and reviews give you an inside look into how a bank operates from the consumer’s standpoint. They allow you to gather how easy the application and account management processes are, how well the product performs, and whether there are any sticking points. If you’re looking for customer reviews and ratings, one place to start your search is the Better Business Bureau (BBB). BBB is a trusted agency platform that provides industry ratings and accreditations, and publishes consumer complaints and reviews. On BBB, Valley National Bank has an A+ rating (but is not accredited). However, it only earns one out of five possible stars from consumer ratings. To be fair, this only includes nine total reviews, most of which relate to auto loans. At the time of this writing, other trusted platforms—including Trustpilot and Google Reviews—did not publish any customer ratings for Valley National Bank. Do I qualify for a HELOC from Valley National Bank? Many home equity lenders may issue clear borrower criteria—such as minimum credit score and income requirements—but Valley National Bank doesn’t. It can be difficult to tell whether you’ll qualify for a HELOC from Valley before beginning the application process and to find information explaining what that process will look like. Borrowers with equity in their homes can qualify for a HELOC up to $350,000 at the published terms and interest rates. (It offers lines of credit up to $1 million, but the details are only available through a bank representative). Valley Bank doesn’t publish maximum loan-to-value ratios (LTVs), but most banks only allow you to borrow as much as 80% or 85% of your home’s value. If you have a home worth $400,000 and owe $110,000 on your home mortgage loan. In that case, you may be able to borrow up to $232,000 against its equity based on the calculation below: (Current home value – amount owed on mortgage) = Current home equity Current home equity x Max LTV = Maximum line of credit $400,000 – $110,000 = $290,000 $290,000 x 80% = $232,000 Valley National Bank doesn’t publish its property requirements. Hence, whether it allows HELOCs on second or vacation homes is unclear. However, the bank states that the posted rates and terms are only available to new lines of credit on primary, owner-occupied homes. You can begin the application process online; a Valley Bank representative will reach out with more information and to complete the process. How do I apply with Valley National Bank? You can’t fully apply for a Valley Bank HELOC online, but you can begin the process. Expect to provide the bank with certain personal information and details about your home, such as your: Full nameDate of birthSocial Security numberContact information (email address, phone)Property addressCurrent mortgage balance Valley National Bank will want to know how much you’re looking to borrow through a home equity line of credit; however, the amount for which you’ll qualify will depend on your credit history, income, and the current appraised value of your home. You can start the HELOC application online, but a bank representative will then reach out to confirm details, request additional information, and begin the approval process. You’ll need to work with a bank representative if you’re looking to borrow between $350,000 and $1 million against your home’s equity. How does Valley National Bank determine how much I can borrow? Valley Bank doesn’t disclose how much homeowners can borrow with a line of credit, but several factors go into calculating a borrower’s maximum HELOC limit. These include: Appraised home valueCredit scoreLocationIncomeBank maximum limits At Valley Bank, eligible borrowers can take out as much as $1 million against their home’s equity. To qualify for the bank’s lowest published rates and terms, homeowners shouldn’t plan to borrow more than $350,000. Your home equity and the maximum LTV you qualify for will determine your personal borrowing limit. If your home value is $400,000, but your location, credit score, and income only qualify you for a maximum LTV of 75%, you won’t be able to borrow more than $300,000 ($400,000 x 75%), minus open liens on the property, such as a mortgage loan. What does the appraisal process look like? Your home’s equity is the difference between what your home is worth and what you owe in the form of a home mortgage loan, home equity loan, or other liens. To determine how much equity you have in your home, you need an updated evaluation of your home’s market value. A home appraisal report is the best way to determine your home’s value up to date. During this process, an unbiased inspector will look at your home’s location, size, condition, and features and then compare those against similar properties in the area to determine your home’s value. The appraiser considers your property’s: NeighborhoodSquare footageLot sizeAgeConditionMaterials and structureFixturesDetached features (such as a garage, shed, or pool) Since appraised values can fluctuate, a previous appraisal report likely won’t be usable. Instead, Valley Bank will order a new appraisal to get the most up-to-date value. Does Valley National Bank charge any fees? Certain costs are tied to taking out a HELOC from any bank, including interest charges on the borrowed amount at your agreed interest rate. Beyond that, you may incur other expenses. At Valley National Bank, you’ll pay an annual fee of $75 as long as your line of credit is open. There is no published option to avoid or waive this fee. If you live in certain states and pay off (then close out) your line of credit within a few months, you may be required to reimburse the bank for some expenses it incurred. For example, owners of New York and Pennsylvania homes are responsible for a $490 early termination fee if they close out their Valley Bank HELOC within the first 15 months after it’s issued. Owners of properties in Alabama, Florida, and New York must repay the origination expenses Valley National Bank incurred issuing the HELOC if they close the line of credit within 36 months. Valley National Bank HELOC FeesAnnual Fee$75Early termination fee (if you pay off and close your HELOC shortly after issue)$490 (New Jersey and Pennsylvania properties when closed within 15 months)Actual origination expenses (Alabama, Florida, and New York properties when closed within 36 months) Does Valley National Bank have a customer service team? If you have questions, need help managing your account, or are interested in a new line of credit from Valley National Bank, you can contact the customer service team using one of the three methods below. By phone: Valley National Bank representatives are available by phone at 800-522-4100, but hours of operation are not published.By online form: If you don’t need immediate assistance, you can submit an online inquiry with your questions through the Valley Bank website. A representative will reach out to you, but the bank does not promise a specific response time.In person: If you need help managing your account or want to open a new line of credit, you can also visit a local branch if one is nearby. Branches are in Alabama, Florida, New Jersey, and New York.