Citizens Bank HELOC Review 2024
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Our Take
4.0
Citizens Bank is one of the largest HELOC lenders in the nation by volume. In addition to the lender’s standard HELOC with a borrowing limit of 85% of your home equity, Citizens Bank offers a specialized HELOC product called GoalBuilder designed for borrowers who make less than the median income in their area. GoalBuilder customers can borrow up to $25,000, and must have a credit score of at least 620 to qualify.
Pros
- Among the top HELOC lenders in the country by volume.
- Full application is available online.
- Closing may be available within seven days.
Cons
- No fixed-rate option.
- Annual fee of $50 after the first year.
- Repayment period is 15 years, when 20 is standard.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
$400,000 | 85% | 640 | Visit Lenderat Figure at Figure | |
$750,000 | 80% | 580 | Visit Lenderat New American Funding at New American Funding | |
$350,000 | 80% | 680 | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
Citizens Bank HELOC rates
Most home equity line of credit, or HELOC, interest rates are indexed to a base rate called the prime rate. The annual percentage rate, or APR, that you’re offered will include a margin the lender has added to the prime rate. These margins depend largely on factors like your credit score, your existing debt and the amount you wish to borrow, but they will vary by lender.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
7.75% | 8% | 7.75% | 8.50% |
On the day we checked, the Citizens Bank GoalBuilder HELOC had a margin of Prime + 3.25%, or Prime + 3% for HELOC customers who set up automatic payments from a Citizens Bank checking account at originations. Rates for the standard HELOC are not posted online.
Customizable rates are also not available without starting an application, and there is no option to lock your variable rate.
Applying for a Citizens Bank HELOC
The application can be completed online, over the phone or in-person at a branch location. Be prepared to provide personal information like your identification and social security number, as well as financial documentation such as bank statements, pay stubs, W-2s and mortgage documents.
When we called, we were immediately able to get in touch with a home equity lending specialist who was able to answer all of our questions.
Opening and using a Citizens Bank HELOC
Borrowers with credit scores of 680 or higher may qualify for Citizens Bank’s standard HELOC option, which has a maximum borrowing limit of 85% of the value of the home, minus what you currently owe on the mortgage.
Borrowers who earn less than the median income in their area may be interested in the lender’s proprietary GoalBuilder HELOC, which has a maximum limit of $25,000 and a minimum credit score of 620.
There’s an annual fee of $50 after the first year.
Borrowers have 10 years to draw from the line of credit, with a 15-year repayment period. This is less than most lenders, which typically have a 20-year repayment period.
Borrowers can access funds in their online banking account or within the Citizens Bank mobile app four days after closing. Checks are available three weeks after closing.
» MORE: Best HELOC lenders
Alternatives to a Citizens Bank HELOC
Borrowers interested in getting a HELOC from a leading lender may consider Bank of America, which was the largest HELOC lender by volume in 2023.
Similarly, those looking for a lender that specializes in HELOCs may be drawn to Figure, though there is a required initial draw.
HELOCs offer a flexible way to access home equity over a period of time and pay interest only on the funds you withdraw. However, rising interest rates can bump up your monthly payment, and, as with credit cards, it takes discipline to avoid overspending.
Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate or a cash-out refinance, which replaces your existing mortgage with a larger loan.
Citizens Bank offers a cash-out refinance.
NerdWallet’s HELOC star ratings are awarded by the editorial team based on the following evaluated factors: HELOC volume, combined loan-to-value ratio, whether a fixed-rate option is available, lender fees, initial draw requirements, flexibility of draw and repayment terms, digital application availability, customer support options and transparency to consumers on key factors. A recent regulatory action against a lender may affect its HELOC star rating.
