You can consolidate your high-interest debt. Make those long overdue repairs to the roof. Or winter in Tahiti. The bottom line is what you do with the money is completely up to you. While we don’t advise splurging on luxury items you may not be able to afford, home equity loans are a smart, low interest way for homeowners to access funds when they need it fast. More details on Citi’s Home Equity Products are below.
Ways to Use Your Home's Equity
- See how you can use your Home Equity to Consolidate Bills.
- Learn about leveraging your home equity to finance education.
- Learn about leveraging your home equity to make your house look like new.
- Big Plans for a Big Purchase? Find out why home equity is the way to go.
- Learn about using your home's equity to refinance an existing loan.
Home Equity Line of Credit
This is a revolving line of credit and a good loan option for those who want a lower up-front rate and access to funds at unpredictable times. With a home equity line of credit you only borrow what you need, and pay interest only on the money you use.
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 a loan.
| Payments | Rate (APR) | Funding Method |
Fees/Costs2 | |
|---|---|---|---|---|
| Fixed Rate Home Equity Loan | Fixed monthly payments | Fixed | One-time disbursement |
None |
| Home Equity Line of Credit | Flexible payment options, that allow for as little as Interest only1 |
Variable | Use funds when needed |
$50 Annual Fee |
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.)
