Popular Questions
Understanding rates is important when you're trying to understand what a home equity loan is and how it is different from a line of credit. Fixed-rate home equity loans have interest rates that don't change during the life of the loan. Variable-rate home equity lines of credit have rates that are linked to an index, such as Prime or SOFR (Secured Overnight Financing Rate) and therefore can change over time.
Most of the time you will not need to get an appraisal, but in the event that you do we will work with you to schedule and cover the cost of the appraisal.
It could take as little as 2 weeks from application to funding, but that can vary depending on your individual situation.
The choice is yours: you can make interest-only payments during the draw period, or you can choose to pay both interest and principal during this period. But note that interest-only payments do not build home equity. At the end of your 10-year draw period, your balance will be converted to a principal and interest monthly payment during the repayment period. At the end of the draw period, even if the interest rate stays the same, your monthly payment will increase, possibly significantly, because you will be required to pay both principal and interest.
Determining equity is simple. Take your home's value, and then subtract all amounts that are owed on that property. The difference is the amount of equity you have.
To determine your home’s value, use your best guess or find a home value estimator. We can also help you determine your home’s current worth.
Ex: If you have a property worth $200,000, and the total mortgage balances owed on the property are $120,000, then you have a total of $80,000 in equity. Most lenders allow you to borrow a percentage of this equity.
LTV stands for loan-to-value. It is the total amount of liens on the property divided by its fair market value.
LTV is used to determine how much you are eligible to borrow and is one of the factors used in determining your interest rate. A lender typically allows you to borrow up to 80% LTV. The lender will multiply the lower of the purchase price or the estimated market value by 80%, then subtract the outstanding liens on the property. The remaining balance represents what you may be able to borrow. Keep in mind that LTV requirements may vary by state and lender.
Ex: If you have a property worth $200,000, and the total mortgage balances owed on the property are $120,000, then you have a total of $80,000 in equity. If a lender typically allows you to borrow up to 80% LTV, then you would be eligible to borrow $40,000 in equity.
When you first apply for a home equity line or loan, you can use a home value estimator. However, we can determine the value of your home during the application process.
Interest you pay on a loan that is secured by your primary residence may be tax deductible. Consult with a tax advisor to determine whether the interest you pay is eligible.
When reviewing your application information, an underwriter examines three main factors to assess whether you qualify for the loan and is also used to determine your interest rate:
- Your credit history (FICO score)
- Your loan-to-value ratio
- Your debt-to-income ratio
Get your personalized variable rate, with no impact to your credit score, via Citizens FastLine® before accepting your offer and completing your application. Your interest rate is based on factors such as your credit history (FICO® score) and ability to repay, the value of your home and the line amount, to name a few.
Yes, a Home Loan Originator will contact you within 1 business day of submitting your online application to answer any questions you may have and discuss the next steps in the process.
The two biggest factors when borrowing a home equity loan or line of credit are the amount of equity you have in your home and your credit score. Another factor is your debt-to-income ratio (how many bills and obligations you have compared to your income). 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 debt-to-income ratio.
Home Equity Loan and Line of Credit FAQs
A variable rate HELOC has an interest rate that fluctuates based on market conditions. The rates are linked to an index, such as Prime or SOFR (Secured Overnight Financing Rate) and therefore can change over time. A fixed rate remains the same for the entire loan term. While a fixed rate has no risk of payments increasing due to market rate hikes, it also won't benefit if rates drop as a variable rate could.
With a home equity line of credit (HELOC), you are only required to pay interest on the outstanding principal balance during the draw period. You can make principal payments during the draw period, but they aren't required. If you do repay principal during the draw period, those funds can be borrowed again.
Note that interest-only payments do not build home equity. At the end of your 10-year draw period, your balance will be converted to a principal and interest monthly payment during the repayment period. At the end of the draw period, even if the interest rate stays the same, your monthly payment will increase, possibly significantly, because you will be required to pay both principal and interest.
Home equity loans on the other hand require a fixed monthly payment of both principal and interest.
Most of the time you will not need to get an appraisal, but in the event that you do we will work with you to schedule and cover the cost of the appraisal.
It could take as little as 2 weeks from application to funding, but that can vary depending on your individual situation.
The interest rate is the rate at which interest will accrue on your outstanding loan balance. In addition to the interest, the APR (annual percentage rate) adds in some of the upfront costs of getting the loan, including points and lender fees.
The choice is yours: you can make interest-only payments during the draw period, or you can choose to pay both interest and principal during this period. But note that interest-only payments do not build home equity. At the end of your 10-year draw period, your balance will be converted to a principal and interest monthly payment during the repayment period. At the end of the draw period, even if the interest rate stays the same, your monthly payment will increase, possibly significantly, because you will be required to pay both principal and interest.
Determining equity is simple. Take your home's value, and then subtract all amounts that are owed on that property. The difference is the amount of equity you have.
To determine your home’s value, use your best guess or find a home value estimator. We can also help you determine your home’s current worth.
Ex: If you have a property worth $200,000, and the total mortgage balances owed on the property are $120,000, then you have a total of $80,000 in equity. Most lenders allow you to borrow a percentage of this equity.
LTV stands for loan-to-value. It is the total amount of liens on the property divided by its fair market value.
LTV is used to determine how much you are eligible to borrow and is one of the factors used in determining your interest rate. A lender typically allows you to borrow up to 80% LTV. The lender will multiply the lower of the purchase price or the estimated market value by 80%, then subtract the outstanding liens on the property. The remaining balance represents what you may be able to borrow. Keep in mind that LTV requirements may vary by state and lender.
Ex: If you have a property worth $200,000, and the total mortgage balances owed on the property are $120,000, then you have a total of $80,000 in equity. If a lender typically allows you to borrow up to 80% LTV, then you would be eligible to borrow $40,000 in 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 rate you get is often lower than with unsecured loans. And is often tax deductible. Consult a tax advisor for more information.
When you first apply for a home equity line or loan, you can use a home value estimator. However, we can determine the value of your home during the application process.
Interest you pay on a loan that is secured by your primary residence may be tax deductible. Consult with a tax advisor to determine whether the interest you pay is eligible.
When reviewing your application information, an underwriter examines three main factors to assess whether you qualify for the loan and is also used to determine your interest rate:
- Your credit history (FICO score)
- Your loan-to-value ratio
- Your debt-to-income ratio
Get your personalized variable rate, with no impact to your credit score, via Citizens FastLine® before accepting your offer and completing your application. Your interest rate is based on factors such as your credit history (FICO® score) and ability to repay, the value of your home and the line amount, to name a few.
Yes, a Home Loan Originator will contact you within 1 business day of submitting your online application to answer any questions you may have and discuss the next steps in the process.
If your credit score is high you may receive better rates and have more options available to you taking out a home equity loan or line of credit. But simply having some credit issues in the past won’t necessarily disqualify you from getting a loan or a line. However, your credit history needs to demonstrate both willingness and ability to repay on time.
The two biggest factors when borrowing a home equity loan or line of credit are the amount of equity you have in your home and your credit score. Another factor is your debt-to-income ratio (how many bills and obligations you have compared to your income). 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 debt-to-income ratio.
Order Checks
We have partnered with Deluxe to provide safe and convenient options to order checks.
Home Equity Line of Credit (HELOC) Checks
By Phone through Citizens: Call the HELOC Servicing team at 1-866-999-0216.
In Person: Find a Branch
By Phone through Deluxe: 1-866-322-1350
Personal Checks
Mobile App†:
- Select the account you want to order checks for in the app, then "Show account info" and tap "New checks"
Online Banking: Log In | Enroll
- Order checks through the Account Services section, then under Order New Checks
By Phone: 1-866-322-1350
In Person: Find A Branch
Online Through Deluxe: Order Checks
- Order directly with Deluxe, our preferred check provider
When you place your order using any of these convenient options, be sure to select your check style and confirm the following:
- Name and address
- Routing number
- Account number
- Check starting number
Please note: If you would like to change a name or address on your checks, please visit a branch near you or call us at 1-800-922-9999 to complete your order.
Your checks will be sent in a flat, streamlined package in a blue envelope.
Deluxe has a toll-free number you can call for more information. It is 1-877-984-4146. Or you can email Deluxe at feedback@deluxe.com.
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*FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
