Understanding Your Home Equity Options

Understanding the basics of a Home Equity Line of Credit (HELOC) and a Fixed Rate Home Equity Loan can give you confidence in choosing the one that's right for you. We'll explain the differences and benefits of each option.

For details about home equity rates, eligibility requirements and other information, view important disclosures.

Home Equity Line of Credit (HELOC)

A HELOC uses your home as collateral for a line of credit that you can access as needed. There are 2 types of HELOCs, a HELOC with a principal and interest draw period or a HELOC with an interest-only draw period. The latter option has asset eligibility requirements. With both options, you'll be approved for a specific line amount to draw from multiple times, up to your available credit limit.

The HELOC includes 2 phases:

  • The draw period, when you can access your funds
  • The repayment period, when you repay the outstanding balance at the end of your draw period

Because a HELOC is flexible and usually has a higher limit, it's generally used to pay for large items like tuition or home improvements rather than day-to-day expenses. Some homeowners also use a HELOC to consolidate higher-interest-rate debt.

A HELOC may be the right choice if you:

  • Have built up equity in your home
  • Prefer to withdraw money as you need it
  • Want to borrow between $10,000 and $1,000,000

What's a Home Equity Line?

Fixed Rate Home Equity Loan

A Fixed Rate Home Equity Loan provides a set amount of money that you repay in equal monthly principal and interest (P&I) payments over a fixed time period.

If you have a balance on your existing mortgage, Citi offers Fixed Rate Home Equity Loans with 5, 10, 15, 20, 25, and 30-year terms.

This loan could be a good fit if you prefer consistent monthly payments for a longer amount of time, or if you need a certain amount for a specific purpose like paying for tuition or home renovations.

A Fixed Rate Home Equity Loan may be the right choice if you:

  • Have a balance on your existing mortgage
  • Prefer to have set monthly payments over a set term
  • Have a large, one-time borrowing need
  • Want to borrow between $25,000 and $300,000

What's a Home Equity Loan?

If you plan to sell your home

If you sell your home, you'll be required to pay off the full amount of your HELOC or Fixed Rate Home Equity Loan immediately. Keep in mind that if you pay in full and close the line of credit within 36 months, you may also have to pay additional charges. If you're likely to sell your home in the near future, you may want to consider a loan instead. Citi also offers Personal Lines and Loans.

Calculate how much can you borrow

Find your rate

By providing us with a few details about your home equity needs, we'll share personalized rates for a Home Equity Line of Credit or a Fixed Rate Home Equity Loan.

Go to the Home Equity Rate Selector

Apply online

Apply by phone


Need help?



Important Disclosures

Terms, conditions and fees for accounts, programs, products and services are subject to change.

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.

Back to top

Share Your Screen With A Phone Representative

During your call, you may be asked to share your screen for a faster, more efficient experience. If you agree, the phone representative you're speaking with will give you a Service Code to enter below.

If you need assistance from a Citi representative, contact us via chat or phone