A home equity line of credit can help you reach your financial goals, whether you’d like to renovate your kitchen, replace your roof or consolidate debt from other high rate balances. A Citizens Bank Home Equity Line of Credit gives you the security, stability, and confidence of a dependable source of funds.
Save with a Citizens Checking Account
Get 0.25 percentage points off your interest rate with automatic monthly payments from a Citizens Bank checking account at origination
To determine your home’s value, use your best guess or find a home value estimator. We can also help you determine your home’s current worth.
Ex: If you have a property worth $200,000, and the total mortgage balances owed on the property are $120,000, then you have a total of $80,000 in equity.
LTV is used to determine how much you are eligible to borrow and is one of the factors used in determining your interest rate. A lender typically allows you to borrow up to 80% LTV. The lender will multiply the lower of the purchase price or the estimated market value by 80%, then subtract the outstanding liens on the property. The remaining balance represents your available equity. Keep in mind that LTV requirements may vary by state and lender.
Ex: Using the example from the FAQ above, if a lender typically allows you to borrow up to 80% LTV, then you would be eligible to borrow $40,000 in equity.