Citibank Home Equity Review
Citibank used to offer some of the best home equity loans for people with excellent credit, but the products are temporarily suspended, according to the bank’s website. The popular bank no longer accepts new applications for fixed-rate home equity loans or home equity lines of credit. These products used to allow you to borrow up to $300,000 with flexible repayment terms of up to 30 years.
Keep reading to discover all the HELOC pros and cons and other useful information about Citibank home equity loans so you’re prepared if they become available again.
Citibank home equity pros and cons
- No application fees or closing costs
- Up to $300,000 borrowing limit for home equity loans
- Flexible repayment terms from 5 to 30 years
- Applications can be completed online or at a branch location
- Home equity products are currently suspended
- Minimum borrowing amount of $25,000 for a home equity loan
Pros explained
Below are the main advantages of Citibank’s home equity loan products.
No application fees or closing costs
With a home equity loan from Citibank, you won’t have to pay any upfront expenses to access the equity in your home. In other words, you can access funds without paying for a home appraisal or credit check or encountering other fees associated with the loan application process.
Other banks often charge application fees and closing costs on home equity loans, but Citibank eliminated these costs to make its loans more affordable.
Up to $300,000 borrowing limit for home equity products
With Citibank, you can borrow between $25,000 and $300,000. You can use funds for a variety of expenses, such as home renovations, debt consolidation and education costs.
The actual amount you qualify for depends on a variety of factors like how much equity you have in your home, your credit score and your income. These loans came with other benefits like terms of up to 30 years and decent interest rates to keep your monthly payments lower.
Flexible repayment terms from five to 30 years
Citibank’s repayment terms range from five to 30 years, depending on your financial situation and needs. Longer terms mean you’ll make lower payments. Shorter terms mean you’ll pay off the loan quickly and save on interest payments, but your monthly payments will be higher.
Applications can be completed online or at a branch location
You can complete the Citibank home equity loan application process from the comfort of your own home or in person. The online application process is straightforward and user-friendly, with helpful prompts and instructions along the way. If you prefer a more traditional approach, you can visit a Citibank branch location to apply for your home equity loan in person. This provides the opportunity to ask questions and receive personalized guidance from a Citibank representative, as well as the convenience of completing the process in a single visit.
Cons explained
Not only are Citibank home equity products not currently available, but the bank also imposes a high minimum loan amount. These are the main disadvantages of a Citibank home equity loan or HELOC.
Home equity products are currently suspended
According to its website, Citibank’s home equity products are temporarily suspended. The company could start accepting applications again if market conditions change. However, it suspended the products on March 3, 2021, and there are no signs of them returning. If you’re looking for home equity products, then consider other options.
Minimum borrowing amount of $25,000 for a home equity product
The minimum $25,000 loan amount is high for a lot of people. If this requirement aligns with your needs — or if you decide to borrow more than you need — ensure you can comfortably manage the loan payments. Make sure that you have a clear understanding of the loan terms, interest rates and fees before applying. Some lenders provide home equity loans with lower minimums, but Citibank focuses on more substantial borrowing needs.
Citibank home equity offerings
Citibank previously offered fixed-rate home equity loans and home equity lines of credit. It is unclear when the products will be available again. Below is an overview of each option.
Fixed-rate home equity loan
Once reinstated, Citibank’s fixed-rate home equity loan will allow you to access a fixed sum of money secured against the equity in your home. With a home equity loan, funds are repaid over a set period with a fixed interest rate, meaning you can enjoy predictable monthly payments. If the product is reinstated, it will be a good option if you want to budget your finances and plan ahead for consistent loan payments.
The interest rates for Citibank’s fixed-rate home equity loan were competitive and lower than other types of loans, with rates that started as low as 6.59% APR.
Home equity line of credit (HELOC)
Citibank’s home equity line of credit (HELOC) was a flexible way to access cash secured by your home. It allowed borrowers to draw funds as needed, making it an ideal option for those with flexible access to cash. With a Citibank HELOC, borrowers can access funds up to a certain limit based on the equity they have in their homes.
One of the main benefits of a HELOC is its flexibility. This type of financing allows you to withdraw funds on an as-needed basis and only pay interest on the borrowed amount. In other words, you can access cash when you need it without paying interest on the total line of credit.
Citibank home equity pricing
As Citibank’s home equity products are currently suspended, there isn’t much information available on current pricing. However, it’s worth noting that these loans typically range from $25,000 to $300,000, with terms up to 30 years. Additionally, Citibank offered fixed- and adjustable-rate loans, which provided flexibility when choosing a payment plan.
Fixed-rate home equity loans came with rates as low as 6.59% APR. The annual fee was $50 during the draw period, except for Citigold or Citi Priority customers.
Citibank home equity financial stability
Citibank is one of the largest banks in America, and according to its 2022 fourth quarter and full-year financial report, it’s on solid financial footing. So, if you decide to get another Citibank product, you can rely on the bank to provide a secure service.
Citibank home equity accessibility
Citibank has decent customer service, with multiple phone numbers and numerous local branches available to give customers the support they need. However, customer support hours are limited, and there is no online chat option. Outside of that, applying online is generally easy for all products, even if you can no longer apply for Citibank’s home equity products.
Availability
Customer service hours are not available online. If you prefer in-person customer service, you can also visit a local physical branch, but should first check their hours of availability.
Citibank also allows you to apply for certain products online, though the lack of live chat option can make this difficult — especially for first-time borrowers.
Contact information
You can contact Citibank regarding home equity loans at 1-877-362-9100.
As these products aren’t available at present, you can also contact the following Citibank numbers for other products and services:
- General Support for Citi Cards 1-800-950-5114
- General Banking Support 1-888-248-4226
- Citi Personal Wealth Management Services 1-800-846-5200
- Citi Self Invest 1-877-693-4543
- Citi Wealth Builder 1-833-828-4533
- Personal Loans Servicing and Support 1-800-685-0935
- New first mortgage or refinance 1-800-248-4638
User experience
Applying for a loan with Citibank is a simple and streamlined process. You can either apply online or through the phone. To apply online, visit the website for the specific product you want and submit a request. Customer service is responsive and helpful, according to online reviews.
Before they were suspended, you could apply for home equity products by submitting an application through the web portal.
Citibank home equity customer satisfaction
Citibank does not have the best online reputation. On average, 582 users on the Better Business Bureau (BBB) website scored the company a 1.04 out of 5. There are no relevant reviews about the home equity products specifically, but overall, consumers have a lot of complaints about the other products. The company also has a bad reputation on Trustpilot, scoring an average of 1.6 out of 5 from users, though that score is based on only 85 reviews.
Minimum requirements to qualify for a home equity loan from Citi are not published, but the bank reportedly requires you to have a minimum of $200,000 in personal assets with the institution or at least $1,000,000 in combined personal assets to qualify for a 10-year interest-only draw period.
Citibank also requires a minimum borrowing amount of $25,000 for its home equity loans. Finally, Citibank requires you to have excellent credit to qualify for a home equity loan.
How we evaluated Citibank home equity
To review Citibank Home Equity loans fairly, we looked at the following factors:
- Fees, terms and borrowing limits
- The application process, including ease and time to approval
- Loan offerings, both the home equity line of credit and other offerings from the company
- Financial stability of the company based on public records and independent reviews
- Customer satisfaction as expressed on the website and in third-party reviews
However, keep in mind that the company no longer offers these products, so information is limited on certain topics.
Summary of Money’s Citibank home equity review
Citibank previously offered home equity loans with flexible rates and terms if you have an excellent credit score. The lender’s application process was reportedly simple, and funds were available up to $300,000. The major problem with Citibank’s home equity loans is that the offerings are temporarily unavailable. Regardless of your credit score or financial situation, you currently cannot get one of these loans, so consider other options if you need a home equity loan now.