Home Equity Line of Credit (HELOC)

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.

Frequently asked questions

What is a draw period?

What is a repayment period?

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.

Frequently asked questions

What is a draw period?

What is a 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

Frequently asked questions

What is a variable interest rate?

Are there any extra fees if I pay off my Home Equity Line of Credit (HELOC) early?

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 5.50% and your margin is 2.00%, your variable rate would be 7.50%. If the Prime Rate changes to 6.00%, your variable interest rate would become 8.00%. 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

What is a repayment period?

Are there any extra fees if I pay off my Home Equity Line of Credit (HELOC) early?

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
• Accessing your Cenlar FSB online account
• Calling Cenlar FSB at 1-855-839-6253
  Mon-Fri 8:30 AM-8:00 PM ET and Sat 9:00 AM-5:00 PM ET

Frequently asked questions

Can I use my Home Equity Line of Credit (HELOC) or Fixed Rate Home Equity Loan to consolidate my high-interest-rate debt?