Citi Bank offers a variety of loans to its customers, and we are going to review all types of Citi Bank loans in this article. You will learn about the interest rate, required credit score, required minimal income, and many other factors you will have to take into consideration. At the end of this review, we will provide you with the links to some useful tools and calculators.
Types of Citi Bank Loans
Citi Bank is one of very few big banks that offers personal loans to its customers. On the other hand, mortgage loans from Citi Bank do not stand out – and that’s to say the least. It is also quite disappointing that Citi Bank doesn’t provide the customers with an opportunity to finance car purchases – this is not a good place to go for sure if you want to buy a car.
Citi Bank Mortgage Loans: Rates and Review
Interest rate (APR): starting at 4.00%.
Required credit score: from 500 to 850.
Required minimal monthly income: starting at $1,800.
Where the loans are available: in every American state, but the majority of the bank branches are located in large metropolitan areas.
Most suitable for: customers seeking a variety of mortgage products on offer.
Citi Bank is one of the Big Four U.S. Banks, but it has the lowest number of mortgage borrowers. There are, however, solid reasons for that, as Citi bank tends to offer average interest rates and very few locations outside of the major cities. Yet, let’s break up this offer from Citi Bank in detail and find out the pros and cons of Citi Bank mortgage loans.
In the first place, we should point out that Citi Bank offers a decent number of mortgage options, as you could expect from such a large bank. Obviously, all of the most popular mortgage products are available. In particular, there are the following mortgage options offered to the customers:
- 30-year fixed rate mortgage loan (interest rate of 4.00%, 4.45% APR, 1.00 points).
- 20-year fixed rate mortgage loan (interest rate of 3.75%, 4.13% APR, 1.25 points).
- 15-year fixed rate mortgage loan (interest rate of 3.13%, 3.56% APR, 1.38 points).
- 5/1 Libor adjustable rate mortgage (interest rate of 3.38%, 4.21% APR, 1.13 points).
- 7/1 Libor adjustable rate mortgage (interest rate of 3.50%, 4.18% APR, 0.88 points).
- 10/1 Libor adjustable rate mortgage (interest rate of 3.75%, 4.27% APR, 0.88 points).
Indeed, the interest rates on 30-year mortgage loans tend to be the market’s average. But it is worth to point out that the interest rates on 15-year mortgage loans are noticeably lower than the ones of the competitors. Thus, you can consider getting a mortgage loan from Citi Bank if you need to a 15-year loan.
When looking at these figures, however, one may think that the mortgage conditions from Citi Bank are not that bad. Yet, one has to stress that Citi Bank assumes the purchase of points in these figures. This means that you will have to pay a higher down payment in order to reduce the long-term costs.
But the existing customers of Citi Bank may find the mortgage offers quite appealing. The customers with a Citi Priority or CitiGold status can enjoy additional benefits when applying for a mortgage. For instance, Citi Bank offers a 0.25% rate discount off standard home equity line. Among other things, one can point out tiered mortgage interest rates and closing costs, which means that you can cut down on the costs of a mortgage loan. But there are no details in that regard, and so you need to talk to your banker in order to obtain them.
On the average, one has to make a 10% down payment when taking a mortgage loan from Citi Bank. Chase Bank, for example, offers a special mortgage loan program, which allows applicants with as low as 3% down payments to apply for mortgages.
We should also stress that a monthly payment on a 30-year mortgage loan from Citi Bank appears to be higher than on the loan of any other bank from the Big Four. If it’s a $200,000 worth mortgage loan, you will have to pay $1,260 per month – compared with $1,077 from Chase, $1,073 from Bank of America, or $1,078 from Wells Fargo. The reason for that is that Citi Bank charges too high lender fee: they amount to $1,526. Third party fees are among the lowest, but that doesn’t save the situation.
As we have pointed out above, Citi Bank has the lowest number of mortgage applicants among the Big Four U.S. Banks. Overall, the number of approved mortgages during the 2013-2017 period is equal to 469,935. The number of complaints is the lowest, though it is beaten by Wells Fargo in terms of ratio (1.50% against 1.17%). This means that there may be potential problems in servicing mortgages.
Same as Chase Bank, Citi Bank serves mostly large metropolitan areas and big cities, while leaving the rural areas underserved. That results in the fact that there are very few customers of this bank in such areas. And considering that there are very few facilities, you shouldn’t consider this bank for a mortgage loan if you live in a rural area.
To sum up, Citi Bank’s mortgage offers get beaten in terms of almost everything. You will have to pay higher monthly installments with a standard 30-year long loan. There are only two advantages of Citi mortgage loans: if you are an existing Citi Bank customer (and so you can lower the interest rate) and if you need additional mortgage options. Otherwise, there are better offers on the market.
Citi Bank Auto Loans: Alternatives
Unfortunately, Citi Bank does not offer auto loans to its customers. While the majority of large banks (such as Chase or Capital One) offer quite affordable car loans, there is no such an opportunity at Citi Bank. Unlike those banks, however, Citi Bank offers personal loans, and you can get a personal loan in order to finance a card purchase.
If you decide to get a personal loan and use it for a car purchase, bear in mind that you are likely to pay a higher interest rate, as you won’t have a car as a collateral. Additionally, we recommend you to learn about the credit cards from Citi Bank.
Citi Bank Personal Loans: Rates and Review
Interest rate (APR): from 7.99% to 17.99%.
Required credit score: from 680 to 850.
Loan amount: from $2,000 to $50,000.
Required minimal monthly income: from $1,200.
Where the loans are available: in every American state, but the majority of the bank’s branches are located in big metropolitan areas.
Most suitable for: customers with a good or perfect credit score who need to get a loan for personal purposes or financing a car purchase.
Citi Bank appears to be one of the very few large banks that provide personal loans to the customers. However, there are certain limitations about these loans – especially if you are not an existing customer of Citi Bank. We are going to uncover these details in the review.
So, if you are an existing Citi Bank customer, you can get a loan between $2,000 and $50,000 on the term from one to five years. You need to be an existing customer and make an application at the bank’s branch, if you wish to get $50,000. In case you submit your application online, you will get only $30,000. If you are a new customer, you will get $12,500 at maximum.
Actually, Citi Bank doesn’t provide the third parties with the requirements that you need to match in order to get a loan. Nor the bank has specified the minimum credit score, but it is believed to be at least 680 or good. When making a decision, Citi Bank considers your credit history, income, and employment status.
In terms of cost, the interest rate will depend on your credit score and may vary between 7.99% and 17.99%. If your credit score is around 850, you can expect to pay 7.99% per month. But if your credit score is around 680, you shouldn’t expect that kind of interest rates, as you are likely to pay much more. Besides, the history of your relationship with Citi Bank and the term of payment will also be considered when defining the interest rate.
When applying for a personal loan from Citi Bank, you have to keep in mind that Citi Bank always makes a hard check. This means that your credit score may be temporarily lowered. But if you are an existing customer of Citi Bank, you can expect to earn some extra rewards, such as autopay and points through the rewards program.
Another important factor to consider is that Citi Bank is one of the very banks that accepts joint applications. This means that another person can submit an application with you, and the credit history and incomes of both people will be considered. Bear in mind that in such a case, both of the applicants are responsible for paying off the loan.
To sum up, there is a good reason to get a personal loan from Citi Bank – especially if you are an existing customer. Nevertheless, we don’t recommend you to get such a loan in order to finance a car purchase. It would be far better to get a car loan from another bank (like Chase Bank) and pay a much lower interest rate.
Citi Bank Loan Calculators
Citi Bank not only provides the customers with a variety of educational materials on its website. There are also numerous tools from this bank, which help the customers to calculate the loans and analyze how to pay them off. In this section of our review, we will provide links and short descriptions for each of the tools.
Loan amount calculator. This tool helps you calculate how much you can borrow, depending on your monthly income. It will help you to make sure that you are not going to get a mortgage that you can’t pay off.
Home affordability calculator. This tool helps you analyze which house is affordable for you, based on a number of criteria. Here, you can take into account such criteria like your monthly expenses, your income, interest rate, down payment, and loan term.
Refinance calculator. This calculator will help you calculate how much you pay for your current mortgage loan and whether it is worth for you to get refinancing and save money.
Additional payment calculator. This tool helps you understand how much you would say over the time if you pay extra mortgage payments.