Truist HELOC Review 2024
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Our Take
5.0
Truist stands out for being one of the largest HELOC lenders in the country by origination volume. Truist HELOCs have a generous borrowing limit, the option to fix the rate on all or part of the loan balance, and no origination fees.
Pros
- Choice of 5, 10, 15, 20 or 30-year repayment terms for borrowers with fixed rates.
- No initial draw required.
- No origination fees or prepayment penalties.
Cons
- $50 annual fee.
- Rates are not posted online.
- Fixed-rate draws must be at least $5,000.
Full Review
Truist 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, variable interest rates ranged from prime + 0% to prime + 7.5%. Borrowers must have excellent credit in order to qualify for the best rates.
Truist HELOCs have a fixed-rate option. Fixed-rate draws have a $15 set-up fee and must be at least $5,000. Rates range from prime - 1.51% to prime + 8%. Borrowers can have up to five open fixed-rate draws at a time.
Applying for a Truist HELOC
Borrowers can apply online or in person at a branch with an appointment. 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.
According to Truist, its HELOC application can be completed in about 15 minutes, and the time from application to closing averages 30-35 days. Among lenders surveyed by NerdWallet, the average reported time to close on a HELOC ranged from 12 to 39 days.
Opening and using a Truist HELOC
Truist HELOCs have a maximum borrowing limit of 89% of the value of your home, minus any remaining mortgage balance. This is on the more generous end for the industry, as most HELOCs have a limit of 80% to 85%.
Borrowers have the option of having Truist pay for most of the closing costs associated with their loan. Reimbursement is not required if you keep the line open for at least three years. There are no origination fees or prepayment penalties, but borrowers must pay an annual fee of $50.
Borrowers have 10 years to draw from the line of credit. With a variable rate, borrowers have up to 20 years to pay it back; fixed rate draws have repayment options of five, ten, 15, 20 or 30 years. There is no initial draw requirement.
» MORE: NerdWallet's best HELOC lenders
Alternatives to a Truist HELOC
Borrowers who need to access their equity quickly may want to explore Figure, which may fund lines of credit in five days.
Alternatively, borrowers who need to borrow a large amount of equity may be a fit for PNC Bank, which has a maximum limit of 89.8%.
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.
Of these options, Truist offers cash-out refinancing.
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.
