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The Yahoo view: Citizens Bank could be a strong option depending on what type of home loan you’re looking for. Its fast and convenient HELOC is a standout, though according to government data, its mortgage rates are higher than the industry median.
Citizens Bank is a nationwide financial institution offering a number of mortgage products. The bank boasts traditional options like conventional, FHA, and VA loans, as well as more specialized products like medical professional loans, construction loans, and home equity lines of credit (HELOCs). There are options for down payment and closing cost assistance, as well as cash rewards when you buy or sell through a Citizens Bank partner real estate agent.
On the downside, Citizens’ interest rates are higher than the industry median, and its customer satisfaction ratings are lower than average.
Read more: The best mortgage lenders right now
Key benefits
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Boasts many loan programs, including HELOCs and medical professional loans
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Offers up to $9,500 in cash rewards for buying or selling through a Citizens Bank partner agent
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Down payment and closing cost assistance available
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HELOCs have no fees or closing costs, and you can receive funding within two weeks of accepting your offer
Need to know
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Doesn’t lend in all 50 states (availability varies depending on which type of loan you want)
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No USDA loans
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Scores just below average in customer satisfaction, according to J.D. Power.
Visit Citizens Bank’s mortgage page on its website.
Citizens Bank offers the following types of home loans:
Citizens Bank does not offer the following types of home loans:
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USDA loans
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Interest-only loans
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Lot loans
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Accessible dwelling unit (ADU) loans
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Investment property loans
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Energy-efficient mortgages
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Non-QM loans
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1%-down mortgages
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Buydowns
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Bridge loans
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Manufactured home loans
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Piggyback loans
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ITIN mortgages
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Home equity loans
Dig deeper: Physician mortgage loans — How they work and who qualifies
Citizens Bank has several loan options for first-time buyers, including FHA, VA, and 3%-down conventional loans. The bank also offers a Destination Home Mortgage™ that doesn’t charge private mortgage insurance (PMI) and may include down payment and closing cost assistance. The ONE Mortgage program is available in Massachusetts and comes with discounted interest rates, payment subsidies, and no PMI.
A Citizens Bank representative also told Yahoo Finance that the lender offers a $3,000 to $10,000 closing cost assistance grant for first-time home buyers meeting certain income and location requirements.
Read more: The best mortgage lenders for first-time buyers
If you’re looking to tap your home equity, Citizens Bank has two options: A cash-out refinance or a home equity line of credit (HELOC). If you don’t want to replace your original mortgage loan with a brand new one, a HELOC is your best bet with Citizens. Here’s what to know about the bank’s HELOCs.
Citizens’ HELOCs are a standout. Thanks to its “FastLine®” app-based application process, you can get your rate quote within minutes. Once you accept the rate and loan amount offered, you fill out the full application and can close in as little as seven days and tap your funds within two weeks.
Citizens Bank HELOCs have 10-year draw periods and 15-year repayment periods. The bank also offers a “GoalBuilder®” HELOC. This allows you to borrow $5,000 to $25,000 without fees or prepayment penalties. It’s designed for borrowers who need smaller amounts and are worried about qualifying for a traditional HELOC.
Though its HELOCs are variable-rate products, you have the option to lock in a fixed rate on some or all of your outstanding balance. You can have up to three rate locks at a time for set amounts.
Dig deeper: How do fixed-rate HELOCs work?
Citizens Bank’s HELOCs have no application or closing costs, and there is no annual fee for the first year. After that, there is a $50 yearly fee for the entire draw period (unless you maintain a Quest® Checking account with Citizens).
Citizens Bank is pretty transparent about its mortgage rates — at least on its 30- and 15-year fixed-rate options. The rates for these are clearly displayed on the bank’s website, with a breakdown of interest rate, APR, points included, and estimated monthly payment for each. Both numbers include a 0.125% discount for setting up autopay and paperless billing.
There aren’t any advertised rates for specific loan programs, such as FHA or VA loans, so you’ll need to fill out a mortgage prequalification application to get an idea of the exact interest rates you’d get on these loans.
Learn more: How to get the lowest mortgage rate possible
Yahoo Finance uses 2023 Home Mortgage Disclosure Act data comprising 10 million home loan applications to score mortgage lenders on issued mortgage rates and total loan costs. We score each lender on a scale of 1 (lowest) to 5 (highest).
For example, with mortgage rates, a lender with a lower score charged a higher-than-median mortgage interest rate for loans issued in 2023. A higher score would indicate a lender granted lower-than-median home loan interest rates to borrowers in 2023.
With total home loan costs, a lower score would indicate that a mortgage lender charged higher-than-median total home loan costs in 2023. A high rating would mean a lender offered lower-than-median all-in home loan costs in 2023.
What this means: Citizens Bank offered a higher-than-median mortgage rate of 6.875% and a typical loan cost of $6,125.05 to borrowers in 2023.
Citizens Bank makes applying for a mortgage relatively easy, and the entire process can be done online. See below for how to go about it.
Citizens Bank doesn’t advertise a preapproval option on its website, but you can get “prequalified” using the bank’s online tool. To do so, you’ll need to provide information about your goals, budget, and finances. You’ll then see several loan options and rate quotes for your specific situation.
Once you’ve gone through the prequalifying process, you can click through and fill out the bank’s complete application, compare all your loan options, and then upload your financial documentation. This can all be done online using the bank’s Blend platform.
The Citizens Bank website has many borrower resources, including home-buyer guides and articles, a glossary, and an FAQ section. The bank also has seven mortgage-related calculators — three for buying a home, two for HELOCs, and two for refinancing. There are also some videos, including one that walks you through the lender’s online application process.
Dig deeper: How much house can you afford? Use the free Yahoo Finance home affordability calculator.
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Many affordable options: The bank offers both government-backed and low-down-payment conventional loans, and its Destination Home and ONE Mortgage programs boast down payment and closing cost assistance, low rates, and payment subsidies. Citizens also offers HELOCs, giving it 5 stars in our Affordability category.
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Good online resources: This site offers several calculators, guides, articles, and other tools for use throughout your buying or refinancing journey. It gets 5 stars in this category.
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Fairly transparent: Citizens Bank clearly displays rates — and any discount points included in those rates — for both 15- and 30-year loans on its mortgage homepage. It gets 3 stars in this category.
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Rates are high: Our analysis shows Citizens Bank’s interest rates are higher than the industry median.
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Ranks low in customer satisfaction: Citizens rates just below average on J.D. Power’s 2024 Mortgage Origination Satisfaction Study.
PNC Bank has more loan options than Citizens, offering USDA loans, lot loans, renovation loans, and more. However, each bank charges interest rates higher than the industry median. While both are options if you need a HELOC, Citizens Bank’s “fastline” app makes it a standout, boasting fast rate quotes and quick funding.
PNC Bank mortgage review
If you’re on the hunt for borrower incentives, Chase is full of them, offering a variety of grants, credits, and guarantees ($5,000 if you don’t close on time!). The two lenders are pretty even on loan offerings, though Citizens Bank does have a HELOC, whereas Chase does not. One important thing to note: Chase rates above-average in customer satisfaction, while Citizens rates just below that mark.
Chase Bank mortgage review
Citizens Bank charged mortgage rates that were above the industry median in 2023, with a typical rate of 6.875%. You can get a personalized rate quote by filling out the bank’s online prequalification questionnaire.
Citizens Bank rates below average in mortgage customer satisfaction, according to the 2024 J.D. Power study. It also has 1.2 out of 5 stars on Trustpilot. The bank has a B+ rating with the Better Business Bureau after being docked for government action against the business, and the time it takes to respond to customer complaints.
Citizens Bank offers a variety of mortgage loan options, so it could be good if you’re looking for a specific type of loan that’s hard to find elsewhere. But its rates are relatively high, and according to the 2024 J.D. Power Mortgage Origination Customer Satisfaction Study, the bank rates lower than average in customer satisfaction.
Methodology:
Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.
Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.
Advertisers or sponsorships do not influence ratings.
Editorial disclosure for mortgages:
The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender’s website for the most current information. This site doesn’t include all currently available offers.
This article was edited by Laura Grace Tarpley.