Home Equity Lines of Credit (HELOCs) are a popular way for homeowners to access funds using their home’s equity. Citizens Bank offers a HELOC that claims to be flexible and competitive in 2025. But how does it really stack up? This review will explore its features, benefits, and costs to help you decide if it’s the right choice for your financial needs. Read on to learn more about this option.
What Is a HELOC?
A HELOC is a revolving line of credit secured against the equity in your home. Similar to a credit card, you can withdraw funds as needed, only paying interest on what you use.
HELOCs typically have two phases:
- Draw period (often lasting 5–10 years): You borrow as needed and pay interest on your balance.
- Repayment period (usually 10–20 years): The line of credit closes, and you repay both principal and interest.
Citizens Bank is one of many institutions offering HELOCs as a way to borrow against your home’s value. But how does it stack up going into 2025? Let’s find out.
Features and Terms of Citizens Bank HELOC
Citizens Bank has stayed competitive by tailoring its HELOC offerings to meet diverse customer needs. Here are some of the core features in 2025:
Loan Amount and Terms
Citizens Bank offers HELOCs with borrowing limits between $17,500 and $1,000,000, depending on your home’s equity, creditworthiness, and location. The draw period lasts up to 10 years, followed by a 15- or 20-year repayment period, providing a long timeline for borrowing and repayment.
This range is comparable to, or even higher than, many competitors, especially for customers with significant home equity. However, the higher loan ceiling is typically available only to those meeting stringent credit and income requirements.
Interest Rates
Citizens Bank provides competitive interest rates that are either variable or fixed. Here’s what’s on offer:
- Variable APR: Typically tied to the prime rate with a margin based on your credit score.
- Fixed-Rate Options: Borrowers can lock in fixed rates on portions of their HELOC balance, offering stability amidst market fluctuations.
For 2025, variable rates start as low as 7.50% APR, slightly higher than the industry average of 7.00% APR. Fixed rates are available, but borrowers may find more competitive fixed-rate options with alternative institutions.
Fees and Closing Costs
Citizens Bank eliminates many of the traditional upfront costs:
- No application fees
- No annual fees for the first year
- Options to waive closing costs if you maintain the HELOC for at least three years
This fee structure is attractive, but it’s important to note that if you close your HELOC early, you may be subject to reimbursement of these costs.
Online Tools and Accessibility
Citizens Bank provides robust online tools to manage your HELOC, including easy applications, draw tracking, and payment scheduling. Their mobile-friendly platform simplifies the user experience, making it easy for borrowers to stay on top of their accounts anywhere, anytime.
Advantages of Choosing Citizens Bank for Your HELOC
Here are the standout reasons why Citizens Bank's HELOC could be the right choice in 2025:
- Flexible Line Sizes: With borrowing limits reaching up to $1 million, Citizens Bank caters to those needing substantial credit lines for large projects.
- Fixed-Rate Options: The ability to fix a portion of your balance provides an extra layer of predictability, particularly valuable given potential interest rate hikes.
- Promotional Offers: The first-year fee waivers and discounts for autopay offer additional savings.
Drawbacks of Citizens Bank’s HELOC
While Citizens Bank’s HELOC has many benefits, it may not be the best fit for everyone. Here are some potential downsides:
- Higher Starting Rates: With an entry-level APR slightly above some competitors, households looking for the lowest rates might be able to find better deals elsewhere.
- Stringent Requirements for the Best Rates: Like most lenders, Citizens Bank requires excellent credit (typically 740+) and a strong financial profile to qualify for the best terms.
- Fee Reimbursement Penalties: If you close your HELOC before the three-year mark, the waived closing costs will be added back, which could come as a surprise to some borrowers.
How Does Citizens Bank Compare to Competitors?
Citizens Bank is just one option among many lenders offering home equity lines of credit. So, it's worth considering how this bank compares to its competitors in terms of rates, requirements, and fees.
Wells Fargo
Wells Fargo offers HELOCs with rates starting at 4.625%, which is slightly higher than Citizens Bank's advertised rates. However, Wells Fargo does not offer a rate discount for automatic payments like Citizens Bank does.
Chase
Chase also offers HELOCs with rates starting at 4.5%, which again is slightly higher than Citizens Bank's advertised rates. However, they do offer a larger maximum credit limit of $1 million compared to Citizens Bank's $500,000 limit.
U.S. Bank
U.S. Bank offers competitive HELOC rates starting at 3.65% and has no annual fee, making it an attractive option for borrowers looking to save on fees. They also offer a rate discount for automatic payments, unlike Wells Fargo.
PNC Bank
PNC Bank offers HELOCs with rates starting at 3.75%, which is slightly higher than U.S. Bank's rates but still lower than Chase and Wells Fargo's rates. They have a maximum credit limit of $250,000 and do not charge an annual fee.
Conclusion
Citizens Bank offers competitive HELOC options with rates starting at 3.74%, positioning it as a strong contender among banks like PNC and U.S. Bank. They provide flexibility with no application, appraisal, or annual fees, ensuring borrowers can save on upfront and ongoing costs. With solid rate offerings and customer-friendly terms, Citizens Bank is a reliable option to consider for a HELOC.
