Home Equity Loans
Find a home equity loan with attractive rates and flexible terms
Apply for a fixed home equity loan from Citizens Bank to help finance a college education, make major home renovations or pay off existing debt. We’ll work with you to understand the amount you want and how much you can pay per month, so you get a home equity loan that fits your needs. Talk to a Citizens Bank home loan advisor to find a fixed rate home equity loan you can afford with flexible payment terms that meet your unique situation. You may also want to consider a home equity line of credit .
Compare your home equity loan options:
Benefits
No application costs, no closing costs or annual fees
Fixed interest rate home equity loan with fixed monthly payment
You may qualify for a no monthly maintenance fee Circle Gold Checking with Interest - and all the benefits of Citizens Circle Gold Banking® .
Rates & Tools
Home Equity Loan Options
Choose Your Payment
Choose your monthly payment and we'll help you determine the loan amount and term that work best for you.
Pay for home improvements and educational expenses or consolidate debt.
Looking for home equity loan payments that fit your life?
Set your payment right where you want it with the Choose-Your-Payment Home Equity Loan. Whether you're looking to pay $116, $600, $756, or $902.53 a month, our a Choose-Your-Payment loan lets you pick the best fit for your budget.
Freedom of Choice
Choose the monthly payment you can afford and we'll work with you to determine the loan amount and term
Pay for home improvements and educational expenses or consolidate debt
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.
Bring your questions about fixed home equity loans to a Citizens Bank home loan advisor
Don't know which loan option is right for you? A Citizens Bank home loan advisor can help you find the best fixed home equity loan option for your situation. Or, if you already know what product you need, you can get started today by beginning your home equity loan application online. Call 1-888-567-1510 or visit a Citizens Bank branch for assistance with your home equity loan questions.
Click here to access our colleagues’ NMLS ID#
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
Sign up now to receive offers and updates from Citizens Bank.
Please enter a valid email address.