Truist Home Equity Lines of Credit 2024 Review

Truist exclusively offers home equity lines of credit (HELOCs) and not traditional home equity loans. Truist HELOCs are available in fixed rate, variable rate, and interest-only repayments.

A HELOC is an open line of credit that allows homeowners to borrow against their home’s equity. Rates, fees and repayment terms vary by lender, but a HELOC typically allows you access to the credit line for ten years, and gives you 20 years to repay the amount you’ve borrowed.

HELOCs are a flexible option for everything from funding home improvements to paying off higher interest debt (HELOCs tend to have lower interest rates than credit cards).

Read on our full review of Truist, Money’s top pick for fixed-rate HELOCs.

Best Fixed-Rate HELOC

Truist’s fixed-rate HELOC option features flexible repayment terms and low rates. Additionally, Truist will cover most, if not all, of the closing costs associated with its fixed-rate HELOC.

Fixed-rate HELOCs with Truist have repayment terms from five to 20 years, which allows customers a lot of leeway in determining what term best fits into their personal finances. And as long as you keep the line of credit open for three years, Truist will pay the closing costs and waive reimbursement.

Truist Home Equity Loan Pros and Cons

Pros explained

Offers fixed, variable and interest-only repayment HELOCs

Truist offers the flexibility of three different kinds of HELOC products. In addition to the aforementioned fixed rate option, the company also has variable interest rate and interest only repayment HELOCs. Variable rate HELOCs give you the possibility of paying less in the future if the rate falls, and interest only repayments allow you to make smaller payments during the draw period.

Simple online application

Truist online application is simple and typically takes 15 minutes or less to complete. In most cases, you can expect a response to your application within one business day. Once your application is approved, and all of the necessary paperwork is in order, it can take an average of 30 to 35 days to close from the application date.

Covers closing costs

With Truist you can choose between paying closing costs or having the bank pay them for you. However, you must keep your credit line open for at least three years. If you close your credit line before this time, you’ll have to reimburse the closing costs to Truist.

Cons explained

Only offers HELOCs

Truist’s home equity products are limited to lines of credit. The company does not offer home equity loans. If you are interested in this option, check out our list of the best home equity loans.

$50 annual fee applies to residents of some states

Truist requires a $50 annual fee for the following states: Alabama, Arkansas, California, Florida, Georgia, Indiana, Kentucky, New Jersey and Ohio.

Investment properties don't qualify

Truist HELOCs are not available for investment properties, mobile or manufactured homes. As with most banks, the property used as collateral must be an owner-occupied home, a single-family unit, a condominium or a primary and secondary residence.

Limited availability

As of this writing, Truist HELOC is only available for properties located in any of the 19 states where the bank operates, plus Washington D.C..

Truist Home Equity Loan Offerings

Truist offers a variety of banking products for consumers and businesses. However, when it comes to home equity loans, the only product it offers is lines of credit.

Home equity line of credit (HELOC)

Truist home equity line of credit features competitive rates ranging from 9.52% APR to 16.00% (or the state’s maximum).

Truist HELOCs come with fixed or variable rates, and the typical 10-year draw period and 20-year repayment period that most lenders offer. However, you can also choose to make interest-only payments.

Here’s how Truist repayment options works:

Fixed-rate repayment

With this plan, your interest and loan terms are determined at the beginning of your contract and will not change throughout the life of your loan. You will select a 60, 120, 180 or 240-month plan which will determine the monthly principal payment. Add interest and applicable fees, and you’ve got your fixed monthly payment.

Variable-rate repayment

With Truist’s variable-rate repayment option, your repayment amount will fluctuate as interest rates rise or fall. Your minimum monthly payment is based on your outstanding balance and includes both interest and a percentage of your principal balance. Every payment you make will help reduce your principal balance, and paying more than the minimum required will affect the amount of your future payments. The minimum monthly payment with this option is 1.5% of the total outstanding balance of the loan amount.

Interest-only repayment

With this payment plan, your minimum monthly payment equals the interest accrued on the outstanding balance during the previous month. With Truist’s interest-only repayment, your minimum monthly payment will not reduce the principal balance, and the interest rate is variable. This option is useful for those who need to make smaller payments up front, but can commit to larger payments later.

Truist Home Equity Loan Pricing

Aside from interest, the costs associated with a Truist HELOC are set-up fees, origination fees, annual fees and closing costs. As stated above, there are nine states where you will have to pay a $50 annual fee. Truist fixed-rate HELOC may also be subject to a $15 set-up fee, depending on the line of credit limit and terms.

When it comes to closing costs, Truist pays closing costs for lines of credit up to $500,000. Keep in mind that having closing costs covered by Truist may result in higher interest rates. Another cost to keep in mind is prepayment penalties. With a Truist line of credit, you may have to pay origination or closing costs if the account is closed within three years of opening.

Truist Home Equity Loan Accessibility

Truist has more than 2,500 branches in 17 states and Washington D.C.a. In addition to its brick-and-mortar branches, Truist has a robust website with many resources and a mobile banking application.

Availability

Truist products and services are available in the following states:

• Alabama
• Arkansas
• California
• Florida
• Georgia
• Indiana
• Kentucky
• Maryland
• Mississippi
• Alabama
• North Carolina
• New Jersey
• Ohio
• Pennsylvania
• South Carolina
• Tennessee
• Texas
• Virginia
• West Virginia
• Washington D.C.

Contact information

Truist’s customer service is available Monday through Friday, from 8 am to 8 pm EST and Saturday, 8 am to 5 pm. Through the Truist help center, you can also find branches, advisors or connect with Truist on social media.

Phone: 844-4TRUIST, outside the U.S.: +1-910-914-8250

Website: www.truist.com

Location finder: www.truist.com/locations

User experience

Truist earns an A+ business rating from the Better Business Bureau (BBB), and it has been accredited since 1986. Although Truist has earned this accreditation, we'll dive into some concerns among customers below. The BBB does not factor in customer reviews when deciding on the grade and credibility of a company.

Truist Home Equity Loan Customer Satisfaction

Customer reviews on the BBB give Truist low communication and response time ratings. Many of the reviews note having to speak with multiple representatives before finding a solution to an issue or waiting days for a call back. Other reviews indicate that although Truist has a mobile app, it is often out of service or experiencing glitches.

Many of the negative customer reviews point to the 2019 merger between SunTrust and Truist. The reviews state that banking issues arose after Truist acquired SunTrust, and resolving concerns was difficult and frustrating. Many customers on BBB say they saw issues with their home loans or HELOCs once SunTrust transitioned into Truist.

How We Evaluated Truist Home Equity Loans

Our team reviewed information from Truist’s website, customer review sites and the BBB to compile a reliable review of Truist HELOC options.

We considered the following factors:

• Loan options
• Price transparency
• Application process
• Customer satisfaction

Summary of Money's Truist Home Equity Loan Review

As with any other financial decision, opening a HELOC or home equity loan has pros and cons.

Truist HELOCs could be a good option for you if you are familiar with online applications and don’t anticipate needing to talk to customer service by phone very often. Truist also has plenty of branches, making it a good option for visiting branches in person.

Truist is accredited by the BBB, but there are some red flags within the consumer reviews online, specifically when it comes to customer service. Even so, because of Truist’s flexible HELOC options, it is worth considering when you begin your search for a home equity line of credit.