What is a HELOC and how does it work?
A HELOC is a line of credit that uses your home as collateral. Find out how the equity in your home empowers you with the flexibility to do more with your money.
What you can do with a Home Equity Line of Credit
Home renovation
Increase your home value and enjoyment with a dream renovation
Debt consolidation
Save money by consolidating debt into a lower monthly payment
Pay for education
From kindergarten to college, a HELOC can help you and your family pay for education
Make large purchases
Enjoy the flexibility to pay for vacations, big-ticket items or unexpected costs
Meet Citizens FastLine®
Citizens FastLine is our digital application process that allows you to get a home equity line of credit faster and with less paperwork. Receive a personalized, low rate offer in 2-3 minutes and start funding your project in as little as 2 weeks.
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You’re ready for Citizens FastLine®
Next big project? Meet the next big thing in lending. It's a faster, smarter and better way to finance your next project.
What to know about getting a HELOC
Your Home Value – All Amounts Owed on Property = Your Home's Equity
A HELOC functions similarly to a credit card, use what you need, when you need it. You can use your funds and pay them back as many times as you want during the borrowing period. Use a home equity line of credit to pay for home improvements, education costs, major expenses, cash management and more. You can even use a HELOC to consolidate debt. Use only what you need when you need it from this line of credit, you don't have to use everything you borrow.
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.
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.
We will determine the type of appraisal needed and contact you after we review your application and collateral information.
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Citizens HELOC disclosure: Home Equity Lines of Credit are offered and originated by Citizens Bank, N.A. (NMLS ID# 433960) All loans are subject to approval.
Variable Annual Percentage Rate: Variable Annual Percentage Rate ("APR") based on The Wall Street Journal Prime Rate ( Prime ) published on the last business day of the month, (#Json=Label_Lookup|Brand=citizensbank|TargetElementType=span|TargetElementId=|Key=PRIME_RATE# APR as of #Json=Label_Lookup|Brand=citizensbank|TargetElementType=span|TargetElementId=|Key=PRIME_RATE_DATE#). Maximum APR 21%. Minimum APR 2.50%. Our best rate, including all rate discounts, cannot be lower than 2.50% APR.
Eligible properties include owner-occupied 1-to 4-family properties, condominiums and second/vacation homes. Ineligible properties include, but are not limited to: investment property (defined as non-owner-occupied property), a co-op, mobile home or manufactured housing. Property must be located in AL, AR, CT, DC, DE, FL, GA, IA, IL, IN, KY, MA, MD, ME, MI, MN, NC, NE, NH, NJ, NY, OH, OK, PA, RI, SC, SD, TN, VA or VT. Rate and terms are subject to change and credit approval. Home equity lines of credit are available in first or second lien positions. Not available for homes currently for sale. Homes previously listed for sale must be off the market for at least 90 days prior to application. Property insurance required. Flood insurance may be required. Citizens offers Home Equity Lines of Credit as low as $17,500, but terms may vary.
No annual fee for the first year, then $50 per year thereafter during the draw period. The Annual Fee is waived for the Citizens Home Equity Line of Credit if you have a Citizens Private Client™, Citizens Private Bank™ or Citizens Quest® Checking account open and active at the anniversary of your Credit Line when the Annual Fee would be assessed. If you do not meet this requirement, the Annual Fee of $50 will be charged to your Credit Line Account.
