Citizens Bank is a nationwide financial institution that offers a variety of mortgage products and home loans. It provides traditional options such as conventional, FHA, and VA loans, alongside specialized products aimed at specific professions, such as medical professional loans and construction loans. Notably, the bank features a Home Equity Line of Credit (HELOC) that is highlighted for its convenience and fast funding. However, it is essential to be aware that Citizens Bank’s mortgage rates are reported to be above the industry median, which could be a critical factor for potential borrowers. While they offer cash rewards for transactions through affiliated real estate agents and assistance for down payment and closing costs, this is weighed against their lower-than-average customer satisfaction ratings.
The bank’s offerings, particularly for first-time homebuyers, are designed to make entry into the market more accessible. They provide several low-down-payment programs, including a Destination Home Mortgage™ that eliminates the need for private mortgage insurance (PMI) and may include financial assistance for closing costs. Citizens Bank also offers the ONE Mortgage program, which is especially advantageous for Massachusetts residents, providing discounted interest rates and payment subsidies. For first-time buyers in specific income brackets, the bank has grants for closing costs that can range from $3,000 to $10,000. Thus, Citizens Bank could be a viable option for potential homeowners looking for support in navigating the home-buying process.
Citizens Bank stands out in the realm of HELOCs, boasting a user-friendly application process via its “FastLine®” app. This tool allows borrowers to receive rate quotes quickly and can facilitate funding in as little as two weeks post-application approval. The bank also offers a unique “GoalBuilder®” HELOC for smaller amounts, making it easier for borrowers with limited equity to access funds without facing penalties. The absence of application and closing costs, along with no annual fees in the first year, makes Citizens Bank’s HELOC a compelling option for those looking to leverage their home equity. However, it’s important to note that the HELOCs available are variable-rate products, with the option for borrowers to lock in rates, which adds flexibility to managing repayment.
Despite its wide range of loan offerings, Citizens Bank does have notable exclusions, such as USDA loans and interest-only loans. Their online resources facilitate the mortgage process, allowing applicants to prequalify for loans without needing to visit a physical location. The online platform helps prospective borrowers navigate through various options and even compare rates tailored to their circumstances. While most mortgage lenders present advertised rates for specific loan types, Citizens Bank relies on its prequalification process, which could be a minor hurdle for those seeking immediate rate information. Nevertheless, the overall digital experience and abundance of educational resources can position this bank favorably, particularly for first-time buyers.
However, potential borrowers should consider Citizens Bank’s mortgage rates relative to the market. In 2023, the bank’s issued mortgage rates averaged 6.875%, which exceeds the industry median. This rate disadvantage could be a substantial factor for buyers who are sensitive to ongoing payment commitments. Citizens Bank’s mortgage cost also averages higher than median total home loan costs, which could affect the affordability of loans over time. Consequently, while Citizens Bank has much to offer in terms of variety and resources, it remains imperative for buyers to weigh the potential financial impacts against the benefits of its loan products.
Customer satisfaction is another area where Citizens Bank faces challenges. According to the J.D. Power 2024 Mortgage Origination Satisfaction Study, the bank ranked just below average, reflecting a mixed reception from existing customers. This low rating aligns with external reviews, as Citizens Bank has garnered a rating of 1.2 out of 5 stars on Trustpilot, and has faced scrutiny from the Better Business Bureau for response times and past government actions. In contrast, competitors like Chase Bank boast higher customer satisfaction ratings, making them attractive alternatives for borrowers seeking reliable service alongside financial products. As consumers evaluate options, they should pay close attention to past experiences reported by other borrowers.
Ultimately, Citizens Bank offers a comprehensive array of mortgage products, which can cater to specific needs for borrowers, particularly concerning unique loan types and quick HELOC funding. While its higher interest rates and lukewarm customer satisfaction ratings present challenges, the bank’s extensive digital support and numerous assistance programs might compensate for these drawbacks for certain buyers. Its strong emphasis on HELOCs and targeted support products for first-time buyers could make it a favorable choice for those prioritizing assistance and fast processing over lower borrowing costs. Therefore, potential borrowers should undertake a careful assessment of their priorities, scrutinize the terms offered, and consider personal circumstances thoroughly before proceeding with Citizens Bank.