Home Equity Line of Credit (HELOC)

Use your funds for whatever you need simply by writing a check. Our low-rate Home Equity Lines of Credit have flexible repayment terms and no closing costs.

Lines of Credit and Rates

Capped Rate HELOC

FAQ's

Rates	View home equity lines rates and terms
Benefits	Flexible repayment terms and a 10-year period during which you can borrow against your home equity line. Access your line of credit with special home equity checks. Rate is lower than on most other loans, and the interest you pay may be tax-deductible. No application costs or closing costs. You may qualify for a no monthly maintenance fee Circle Gold Checking with Interest - and all the benefits of Citizens Bank Circle Gold Banking.
Home Equity Line of Credit Options	Capped Rate HELOC Borrow what you need at an attractive variable rate as low as Prime +2.25% Relax knowing the rate won't exceed 9.25% at any time during the draw period. Learn More
See full disclosures Payment Example

You want a home equity line of credit for its flexibility, but you're worried about rising interest rates. Well, our Capped Rate Home Equity Line of Credit lets you borrow what you need at an attractive variable rate as low as Prime +2.25%, while giving you the peace of mind of knowing that the rate won't exceed 9.25% at any time during the draw period. So borrow what you need and relax. We've got you covered.

To see if the Capped Rate Home Equity Line is right for you, check out the comparison below. The Capped Rate Home Equity Line of Credit is available exclusively at your nearest branch or by phone. To apply or learn more, call 1-888-567-1510 or locate your local branch. Our helpful bankers are available to explain the Citizens Bank Capped Rate Home Equity Line in more detail.

Comparison for $50,000 loan:

Product	Prime Related Rate	Immediate Borrowing need	APR as low as	CAP APR¹	Preferred by customers looking for:
Capped Rate Home Equity Line	Prime + 2.25%	$25,000	5.50%	9.25%	Security of knowing rate will never exceed 9.25%
Home Equity Line of Credit	View rate	$25,000	View APR	n/a	Standard Home Equity Line of Credit

Line APRs reflect Circle Gold Checking account discount.

¹ APR will be capped at this rate for the life of the 7-year draw period. The Capped Rate Home Equity Line of Credit rate assumes a minimum $10,000 draw at closing and having or opening a Circle Gold Checking account with automatic deductions of your Capped Rate Home Equity Line of Credit monthly payment. Interest-only payment is available only during the first 7 years. Minimum line size: $10,000.

See full disclosures

Do I Need A Home Equity Loan or a Home Equity Line of Credit?
Both products use your home as collateral. The main differences between the products are:
- The line of credit is accessible for a long–term draw period, usually by check or online banking. Once you pay down your balance, you then have more money available to spend again if necessary. A home equity loan disburses all funds at once when the loan term starts and you cannot access any further funds without refinancing.
- A line of credit has a variable interest rate. A home equity loan has a fixed rate.
- A home equity loan payment stays fixed for the life of the loan while a home equity line of credit can increase or decrease based on how you use the line. In addition the interest rate adjusts with the Prime rate.
What is the Difference Between a Fixed Rate and an Adjustable Rate?
Fixed rate loans have interest rates that don't change during the life of the loan. Adjustable rate loans have rates that are linked to an index, such as Prime or LIBOR, and therefore can change over time. For example, a Home Equity Loan has a fixed rate where as a Home Equity Line of Credit has an adjustable or variable rate.
Do I Want an Interest-Only Payment?
HELOCs allow for interest-only payments on the portion of the line you use during the initial draw period. After the draw period both principal and interest payments are required on the outstanding balance. Interest-only payments allow you flexibility when your cash flow does not permit a fully amortizing loan payment. Keep in mind however, that the monthly payment may fluctuate based on how much of the line you use. You can also make payments to the principal to pay off the amount you used so that money becomes available to you again. Home equity loans on the other hand require a fixed monthly payment of both principal and interest.
Why Should I Refinance?
There a numerous reasons customers refinance the loans they already have. Some of these are:
- To lower the monthly payment.
- To lower the interest rate.
- To switch from an adjustable rate to a fixed rate, or vice-versa.
- To refinance for a higher amount in order to pay off other debts or get cash.
- To change the remaining term of the loan.
Whatever your needs, we can help you decide what makes the most sense for you.
Can I Get Pre-Approved?
We do not offer pre-approvals on our home equity loan or line of credit products; however the whole process (from application to funding) typically takes between 3 or 4 weeks so you receive your funds rather quickly.
Do I Need a Home Appraisal?
We almost always require an appraisal of some form to qualify you for a home equity loan or line of credit. After your application and collateral information are reviewed, we will be able to determine the type of appraisal needed.
How Fast Will I Get My Money?
How quickly you receive your loan funds will be determined based on how quickly you provide any additional documentation needed to complete your loan application. Typically the entire process for a home equity loan or line of credit from application to funding takes about 30 days.
What Are Points?
Points are a one-time fee that a borrower pays to lower the interest rate. One point equals one percent of your loan amount. Points are typically available for mortgage loans and not home equity loans or lines of credit.
What is the Difference Between Interest Rate and APR?
The interest rate is the cost to borrow the money disbursed in the loan. The APR is the total cost of the loan over its life, including costs, points and fees.
Are there Closing Costs?
Typically our home equity loans and lines of credit do not have any closing costs.
What Amounts are Included in My Monthly Payments?
Home Equity Lines of Credit require interest-only payments on the portion of the line you use during the initial draw period. After the draw period both principal and interest payments are required on the outstanding balance.
Home Equity Loans are fully amortized payments that contain both principal and interest. For both home equity products, you can always make additional payments toward principal, which will help you pay off your loan more quickly.
What Is PMI?
Private Mortgage Insurance (PMI) protects lenders against losses that can occur when a borrower defaults on a mortgage. PMI is not required for a HELOC or HE Loan.
How Do I Figure Out How Much Equity I Have?
To understand how much equity you have in your home, just write down your home's value and then subtract all amounts that are owed on that property. The difference is the amount of equity you have. If you have a property worth $200,000, and the total mortgage balances owed on the property are $100,000, then you have a total of $100,000 in equity. When performing this exercise, just take your best guess as to what your property is worth, use a home value estimator or ask a home lending advisor for other methods of determining value.
What Is LTV and Why Does It Matter?
LTV stands for loan-to-value. It is the total amount of liens on the property divided by its fair market value. If the subject property is a purchase transaction, fair market value will be based on the lower of the purchase price or estimated market value as established by the appraisal. LTV is used to determine how much you are eligible to borrow and is one of the factors used in determining your interest rate. Using the example above, if a lender typically allows you to borrow up to 80% LTV, then you would be eligible to borrow $60,000 in equity. The lender will multiply the lower of the purchase price or estimated market value by 80%, then subtract the outstanding liens on the property. The remaining balance represents your available equity. Keep in mind that LTV requirements may vary by state and lender.
Why Should I Use My Equity?
Using the equity in your home is a great way to improve your property, consolidate high-interest debt, finance important life events, or even cover unexpected emergencies. The interest you pay is usually tax deductible. (Consult a tax advisor for more information.)
How Do I Find Out My Home's Value?
When you first apply for a loan, just take your best guess as to your home's value. If you want to try to be more specific, you can use a home value estimator or talk to a home loan advisor for other methods of trying to determine this amount. However, we will determine the value during your application process.
Is My Interest Tax Deductible?
Interest you pay on a loan which is secured by your primary residence may very well be tax deductible. You should consult with a tax advisor to determine whether this applies to your situation.
How Does the Lender Determine if I Qualify for the Loan?
When reviewing your application information, an underwriter examines your credit history (FICO score), your property value, your loan-to-value ratio, and your debt-to-income ratio. These are the main factors which describe you as a home equity applicant. This perceived level of risk determines your loan decision as well as your interest rate in some cases.
What Will My Rate Be?
Rates are based on a variety of factors such as the loan purpose, your credit history and ability to repay, the value of the collateral, lien position, your loan-to-value ratio and the loan amount, to name a few.
How Much Money Can I Borrow?
The two main factors in answering this question are your debt-to-income ratio, and the amount of equity you have in your home.
To calculate your debt-to-income ratio, write down all of your monthly debts (don't worry about utilities or your television service), then divide that amount by your monthly gross income. This will give you a general estimate of your DTI ratio, however an underwriter will determine the final ratio during the application process.
Do I Need to Have Perfect Credit?
While it is true that if your credit score is high you may receive better rates and have more options available to you, this doesn't mean you can't obtain a loan or line of credit if you've had some slips in the past. Credit is only one factor in the underwriting process, so don't think that this alone will stop you from getting a loan; however, your credit history needs to demonstrate both willingness and ability to repay on time.

Click here to access our colleagues’ NMLS ID#

Personalize This Site

Your Current ZIP.

Branch/ATM Locator

Over 1,400 branches close by.

Contact Information

Home Equity and other borrowing needs:
1-855-310-3497

Mortgages:
Apply: 1-888-514-2300
Service: 1-800-234-6002

We'll Contact You
Find a Branch

Receive Email Updates

© Copyright 2013 RBS Citizens Financial Group, Inc. All rights reserved.
Citizens Bank is a brand name of RBS Citizens, N.A. and Citizens Bank of Pennsylvania. Deposit accounts held at RBS Citizens, N.A. and Citizens Bank of Pennsylvania are separately insured.

Citizens Bank is a brand of RBS Citizens, N.A. (NMLS ID# 433960) and Citizens Bank of Pennsylvania (NMLS ID# 522615).