Pay for a new roof. Finance a bathroom remodel. Citi’s home equity loans are versatile enough to fit any type of project. If you have a one-time, big-ticket expense, where you know the cost up front, a Fixed Rate Home Equity Loan may be your best bet. And with a Fixed Rate Home Equity Loan, you never have to worry about your rate increasing. Or maybe you just bought a fixer-upper and foresee multiple home improvement projects in your future. With the flexibility and variable access to funds it provides, a Home Equity Line of Credit (HELOC) might be the right option for you.
Home Equity Line of Credit
A home equity line of credit is ideal for someone who sees his or her home as a maintainable asset. During the 10 year draw period, a home equity line of credit gives you the capability to take out funds to reinvest in your home improvement projects, both today and tomorrow. Use some funds now to work on your kitchen. Next year, remake the bathroom. The following year, redo your landscaping. Best of all, you are only charged interest on the amount you use, when you use it, so go ahead, take your time in updating your house.
- Pay less per month. While completing your project, pay the minimum. Minimum payments are interest only during the draw period only on the amount you owe.1
- Flexibility of Writing a Check. Accessing the money is easy. We will provide you with a book of checks and you’ll use the account just as you would your checking account
- Reduce your taxable income. Your interest paid with a Home Equity Line of Credit can potentially be 100% tax deductible. †
Fixed Rate Home Equity Loan
A home equity loan has a fixed rate. It's also called a fully amortized loan - amortized simply meaning that your principal and interest payments are spread over the life of the loan. So you have a fixed, set payment each month that stays the same for the life of the loan. Ideally you would choose this option if you were funding a one-time project that required a lump sum payment.
- Maintain a fixed interest rate. By choosing a home equity loan, you can lock in your rate today.
- A Fixed Payback Plan. A home equity loan allows you to payback the loan on a fixed term.
- No Closing Costs. Citi pays 100% of the closing costs on your behalf. 2
- Reduce your taxable income. Your interest paid with a Home Equity Loan can potentially be 100% tax deductible. †
Other Ways to Use Your Home's Equity
1 Interest-Only payments: If you choose to pay only the amount of interest due, then at the end of the interest only period you will still owe the original amount you borrowed and your monthly payments will increase because you must pay back the principal as well as interest. Your payment could increase even more if your variable interest rate increases.
2 No Fee/No Closing Costs: For both home equity loans and lines of credit, property insurance and the fee to release an existing mortgage may be required. In addition, an early closure release fee may be charged to recover all third party costs incurred in originating your home equity loan or line of credit if you close your account within 36 months. (Not applicable in Texas.) On home equity lines of credit only, an annual fee of $50 will apply starting on the first anniversary of credit line account opening. (Not applicable in Texas.)
† Consult a tax advisor regarding the deductibility of interest.
