- Use Your Home Equity
- Home Equity Options and Rates
- Home Equity Line of Credit
Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit (HELOC) makes funds available whenever you need them.
For details about home equity rates, eligibility requirements and other information, view important disclosures.
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What are the 2 HELOC options?
There are 2 options when choosing a HELOC.
HELOCs with a principal and interest draw period:
Payments are made up of both principal and interest. During the draw period, you can access funds as needed and your payments are based on your withdrawals. You can expect your monthly payments to be fairly consistent throughout both the draw and repayment periods.
HELOCs with an interest-only draw period:
This HELOC option has eligibility requirements and allows you to make minimum payments that are interest-only during the draw period. Because of this, payments will likely increase during the repayment period
Are you eligible?
To be eligible for a Home Equity Line of Credit with an interest-only draw period, you need $200,000 or more in personal assets with Citi, or $1,000,000 or more in combined personal assets with Citi and other financial institutions. Personal assets include, but are not limited to: deposit, checking, savings, money market, investment, Certificates of Deposit, stocks and bonds, retirement, mutual funds, annuities and trust accounts.
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What's in a monthly HELOC payment?
Payments during the draw period
Payments during the draw period vary depending on whether your draw period is interest only or principal and interest.
Both types of HELOCs are similar to a credit card in that your credit limit is set at a specific amount. As long as you have not reached your credit limit, you will have access to any funds that are available. Paying down the principal balance will help ensure that you have access to the cash you need, when you need it.
For HELOCs with a principal and interest draw period:
During the first 10 years — minimum monthly payments are made up of a combination of both principal and interest. Since this is the same as in the repayment period, monthly payments will be more consistent throughout the credit-line term depending on how much you have drawn out. You may choose to make additional principal payments during the draw period to reduce your outstanding balance and maintain available funds.
For HELOCs with an interest-only draw period:
During the first 10 years — you may choose to make interest-only payments on your outstanding balance. Although the minimum monthly payment is interest-only, many people choose to repay principal during the draw period in order to maintain available funds.
Are you eligible?
To be eligible for a Home Equity Line of Credit with an interest-only draw period, you need $200,000 or more in personal assets with Citi, or $1,000,000 or more in combined personal assets with Citi and other financial institutions. Personal assets include, but are not limited to: deposit, checking, savings, money market, investment, Certificates of Deposit, stocks and bonds, retirement, mutual funds, annuities and trust accounts.
Payments during the repayment period
Your repayment period will begin when the draw period on your HELOC ends. During the repayment period, which is typically 20 years, you will pay back the principal and interest (P&I) on your home equity line of credit with monthly payments.
For HELOCs with a principal and interest draw period:
Since you've been making principal and interest payments throughout the 10-year HELOC draw period, your payments during the repayment period will remain close to what you were already paying. However, since your HELOC has a variable interest rate, your payment may increase or decrease if there are fluctuations in the Prime Rate.
Calculate your monthly HELOC payment
For HELOCs with an interest-only draw period:
It is important to remember that with this HELOC, when your repayment period begins, your minimum monthly payment is likely to increase significantly. Up until this point, you may have been making interest-only payments and now you'll also need to pay towards the principal. This is one of the biggest differences from the HELOC with principal and interest payments during the draw period.
As you pay down your principal balance over time, the amount of interest charged on that balance will decrease accordingly. Month after month, the overall amount you owe will decrease steadily until the full balance is paid off. However, the variable interest rate on your HELOC may cause your minimum monthly payment amount to fluctuate, and possibly increase, as the Prime Rate changes.
If your collateral property is in Texas, your payments will be structured differently. They will be calculated to be an equal amount month after month for the remaining duration of the repayment period. If the variable interest rate fluctuates, your payment will be recalculated to keep the amount equal from that point forward based on the new interest rate.
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The draw period vs. the repayment period
HELOC draw period
A HELOC begins with a draw period, when you can access the funds in your credit line. During this time, you can make draws up to your credit limit as needed.
The minimum payment during the draw period is either principal and interest or interest only, depending on the type of HELOC you have. If you have a HELOC with an interest-only draw period, you still have the option to repay the principal at any time.
HELOC repayment period
When your HELOC draw period ends, you will no longer be able to access your funds and the 20-year repayment period on your HELOC will begin. During this time, you will pay back the outstanding balance of borrowed funds in addition to interest.
For the HELOC with a principal and interest draw period, your repayment period payments will be similar as during the draw period. With both types of HELOCs, the minimum monthly payments could increase if the variable rate goes up. It's important to anticipate this change and budget for your line of credit repayment period accordingly.
For the HELOC with an interest-only draw period, your minimum monthly payment will include both principal and interest during the repayment period, the payment is likely to increase significantly. However, as you pay down your principal balance over time, your monthly payments will decrease.
Are you eligible?
To be eligible for a Home Equity Line of Credit with an interest-only draw period, you need $200,000 or more in personal assets with Citi, or $1,000,000 or more in combined personal assets with Citi and other financial institutions. Personal assets include, but are not limited to: deposit, checking, savings, money market, investment, Certificates of Deposit, stocks and bonds, retirement, mutual funds, annuities and trust accounts.
Calculate your monthly HELOC payment
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HELOC variable interest rate
Citi's HELOC interest rate works differently from a fixed rate mortgage and may move up and down over time.
Variable interest rate explained
Unlike fixed rate mortgages or home equity loans with a set interest rate for the entire term, a Home Equity Line of Credit (HELOC) has a variable interest rate.
Citi's variable rate is based on the Prime Rate, an index banks use to set the rate on consumer loans. Your interest rate would be the value of the Prime Rate plus a margin.
For example, if the Prime Rate is 3.50% and your margin is 2.00%, your variable rate would be 5.50%. If the Prime Rate changes to 5.50%, your variable interest rate would become 7.50%. Your payment would also increase because your monthly HELOC payment amount is tied directly to the Prime Rate.
Your credit agreement should include information on how the interest rate varies, but it's a good idea to research how often the Prime Rate changes and how high it's been in the past.
Calculate your monthly HELOC payment
Convertibility option
Converting your credit line balance from a variable HELOC rate to a fixed rate can help you avoid additional interest and make monthly budgeting easier. If your account is up to date and your principal balance is between $10,000 and $1,000,000, you could convert all or part of your balance any time during the draw or repayment period.*
*Not available for collateral properties in Texas. Additional limitations may also apply.
Frequently asked questions
Are there any extra fees if I pay off my Home Equity Line of Credit (HELOC) early?
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Accessing and managing your credit line
We make it easy to access your HELOC funds and track your available balance.
When you open a Citi Home Equity Line of Credit (HELOC), you'll receive a set of convenience checks so you can make purchases or payments directly from your credit line balance.
You can also access and manage your HELOC funds by:
- Linking your Citi HELOC to a Citibank checking or savings account online
- Contacting us by phone at 1-866-914-1286
- Speaking with us in person at a Citi branch
- Withdrawing funds at a Citi ATM (not available for collateral property located in TX)
Are there any extra fees if I pay off my Home Equity Line of Credit (HELOC) early?
If you close your HELOC account, sell your home or take any other action that results in the release of the lien within 36 months of account opening, you may have to pay an Early Closure Release Fee, which is equal to the 3rd-party closing costs that Citi incurred when you opened your account.
What is a repayment period?
The HELOC repayment period begins when your draw period ends. During the repayment period, typically 20 years, you can no longer access funds and you will pay back the principal and interest in order to pay off the outstanding balance of your credit line.
What is a variable interest rate?
A variable interest rate changes in relation to an index, such as the Prime Rate. Payment amounts may increase or decrease accordingly.
Can I use my Home Equity Line of Credit (HELOC) or Fixed Rate Home Equity Loan to consolidate my high-interest-rate debt?
Yes, when you open your home equity line or loan you can consolidate higher-rate balances. If you choose a HELOC, you can also consolidate balances throughout your draw period by convenience check, by phone, at a Citi branch or online.
What is a draw period?
A Home Equity Line of Credit (HELOC) has a draw period, during which you can access your funds, and a repayment period, during which you cannot make additional draws. Citibank offers HELOCs with principal and interest draw period and interest-only draw period payment options.
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Important Disclosures
Terms, conditions and fees for accounts, programs, products and services are subject to change.
Home equity lines and loans are not offered for collateral properties located in Alaska. A home equity line or loan is available for single family residential properties (including co-ops in New York, Illinois, District of Columbia, New Jersey and Maryland). Home equity lines are also available for 2-4 family homes that are primary residences (excluding Texas). Home equity loans are also available for 2-family homes that are primary residences (excluding Texas). In Texas, home equity lines and loans are only available on collateral properties that are single family, primary residences. Home equity lines and loans are not available for mobile homes in any state. Certain limitations apply. Lines of credit and loans are subject to credit approval. Rates are subject to change without notice. All rates are current as of 06/21/2018.
For Home Equity Lines of Credit: Variable Annual Percentage Rate (APR) can be as low as Prime plus 0.59% (currently 5.59% variable APR) and as high as Prime plus 3.49% (currently 8.49% variable APR). To qualify for the lowest rate, customers must meet relationship balance requirements (as of the closing date); have excellent credit; use Citibank Auto Deduct (an automated monthly debit from a Citibank deposit account) for repayment; meet certain loan-to-value and lien position requirements; take an initial draw of at least $25,000 at closing; and have a line amount of at least $100,000. Rates will vary depending on the state where the collateral property is located. Additional rate discounts may apply. The variable APR is indexed to the Prime Rate as published in the "Money Rates" section of The Wall Street Journal. Maximum APR is 18%. Annual fee: $50 during the draw period (not applicable if collateral property is located in Texas). Customers who elect to pay closing costs will receive an additional rate reduction (not applicable if the collateral property is located in Texas). Closing costs can range from approximately $672 to $18,217, except in New York where they can range from approximately $716 to $24,527. Closing costs may vary based upon the line amount, property location and title insurance required. Home equity lines of credit are not available in 1st lien position if the collateral property is located in New York. An Early Closure Release Fee may be charged to recover all costs incurred for originating your loan and may apply if you close your account within 36 months (not applicable if collateral property is located in Texas). Property insurance and the fee to release an existing mortgage may be required. Applicable for loan sizes up to $1 million. No 3rd lien positions. Home Equity Lines of Credit are available to U.S. residents only.
Home Equity Lines of Credit with an interest-only draw period require the borrower(s) to have $200,000 or more in personal assets with Citi, or $1,000,000 or more in combined personal assets with Citi and other financial institutions. Personal assets include, but are not limited to: deposit, checking, savings, money market, investment, Certificates of Deposit, stocks and bonds, retirement, mutual fund, annuities and trust accounts.
For Home Equity Lines of Credit with an interest-only draw period: Your monthly minimum payments during the draw period can be as low as "interest-only". 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 rate increases. Home Equity Lines of Credit with an interest-only draw period are also available in combination with a Citi mortgage. Please speak to a personal banker for more details.
For Fixed Rate Home Equity Loans: Your Annual Percentage Rate (APR) may be as low as 6.59% APR (as low as 6.84% APR for New York properties) or as high as 8.84% APR (as high as 9.09% APR for New York properties). To qualify for the lowest rate, customers must meet loan amount, loan-to-value and term requirements, have excellent credit history, and use Citibank Auto Deduct (an automated monthly debit from a Citibank deposit account) for repayment. If you borrow $50,000 at 7.34% APR for a 30-year term, assuming no down payment, you will make 360 payments of approximately $344.14. Other rates and terms may be available. Repayments can be made over 5, 10, 15, 20, 25 or 30 years; however, the monthly payment amount may differ from the example used above based on the loan amount and repayment term selected. If you close your account within 36 months an Early Closure Release Fee may be charged to recover all costs incurred for originating your loan (does not apply to collateral properties in Texas). Property insurance and the fee to release an existing mortgage may be required. Fixed rate home equity loans are not available in 1st lien position.