Citibank Home Equity Line of Credit

Homeowners build up equity in their home over time, which they can borrow against in order to perform remodeling or consolidate credit. Current home prices are falling, and many homeowners have lost the equity in their home. Now may be the time to borrow against the equity in a home before interest rates go back up. There are many financial institutions that provide home equity line of credit programs to their customers. Citibank is a well known financial institution that provides home equity loans and home equity line of credit programs to homeowners who have equity.

A home equity line of credit works by giving the homeowner a loan on the equity that is associated in the home. The borrower can borrow a little of the loan at a time, or they can borrow the total home equity line of credit at once. Citibank offers competitive prices on interest rates that many homeowners look for when shopping for a home equity line of credit. If the homeowner decides to have automated payments made on their home equity line of credit with Citibank, they will receive a discount on the interest. There are a few other ways that Citibank customers can save on interest with a home equity line of credit.

If the homeowner uses $25,000 or more on their line of credit, they will receive a discount on their interest rates on the home equity loan. Citibank customers will also receive a discount on interest if the customer has an excellent credit score. There are many other advantages to a Citibank home equity line of credit like no fees on the application process and all interest paid is tax deductible. However, there is an annual fee of $50 that Citibank charges when using their home equity line of credit.

Citibank offers different interest paying payment plans on t heir home equity line of credit products. For example, interest rates are fixed, adjustable or variable rates. The type of home equity line of credit that a Citibank customer uses will be up to the customer. Each customer has different needs and goals that they are trying to achieve, and each different interest payment plan is designed to meet the broad goals of customers. The home equity line of credit programs that Citibank offers are only available for 1 to 2 family residences. A residence that isn’t considered a 1 to 2 family residence will not qualify for a home equity line of credit from Citibank.

Home equity line of credit programs help people consolidate their bills for a lower monthly interest rate. Credit cards and personal loans often charge a higher interest rate that makes paying off these types of bills difficult for some. Consolidating debt with a home equity line of credit is the smartest way to save on interest payments. Another advantage to a home equity line of credit is the fact that this type of loan acts much like a credit card. The homeowner can borrow on their equity more than once.

In other words, once the homeowner pays of their home equity line of credit, they have the option to borrow on their equity again. A lot of families actually use Citibank home equity line of credit programs to send their children to school as well. The cost of getting a higher education is becoming more expensive, and families are forced to get creative with helping their children earn a degree. Citibank home equity line of credit programs also allow the homeowner to remodel their home, essentially adding more value to their residence. Customers can visit the Citibank website to begin their application for a home equity line of credit.