Citizens Bank Mortgage Review 2022

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Citizens Bank Mortgage Review 2022

Citizens Bank Mortgage Review 2022

Editor’s Note: (3.9 / 5)

Citizens Bank Mortgage Review 2022

Editor’s Note: (3.9 / 5)
  • Minimum credit score:

    620

  • Minimum deposit:

    3% conventional; 3.5% FHA; 0% VA; 20% giant

  • Can apply online:

    Yes

  • Works in:

    The 50 states

NextAdvisor’s Take

Advantages

  • Available in all 50 states
  • 0.125% automatic payment rate reduction (with an existing account at Citizens Bank)
  • Online mortgage application process
  • Offers FHA and VA loans

The inconvenients

  • Does not offer USDA loans
  • Physical branches only available in 11 states
  • Finding the price list on the site is difficult
  • Credit check for a personalized quote
  • Rates shown have built-in discounts including a 25% deposit

The bottom line

Citizens Bank offers an attractive 0.125% discount on automatic payment, but with caveats: you must open a checking account (if you don’t already have one) with Citizens Bank, and you must use this. account to pay the mortgage.

The online application process seems straightforward enough at first glance, but the lenders’ fees were only accessible by phone call. One major drawback that stands out from other lenders is that a credit check is required to get a personalized quote.

Citizens Bank might be a good option for qualified buyers looking for a conventional mortgage with an existing relationship with Citizens Bank. Borrowers should, however, exercise caution. Depending on your credit profile, the rates you see on the Citizens website are unlikely to be the rates you get. The fine print says you’ll need a 740+ credit score and a 25% down payment on hand. It may be best to research other lenders who will prequalify you with a quote and a credit check before you apply with Citizens Bank.

EDITORIAL INDEPENDENCE

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information on our rating methodology, Click here.

Comprehensive Citizens Bank Review

Citizens Bank offers home equity loans and home equity lending products among its private and commercial banking products. It is part of the Citizens Financial Group, which is the 15th national bank.

With services available online and at approximately 1,000 branches in 11 states in the New England, Mid-Atlantic and Midwest regions, borrowers have a variety of ways to learn and apply for a loan. Citizens Bank offers rate reductions when you set up automatic payments, as well as a Home Rewards program that homeowners in some states can use to earn cash back after buying or selling a home through the Home Rewards program. the Citizens Bank. The application process is digital from start to finish, and customer service representatives and loan officers are accessible by phone.

A few downsides of Citizens Bank are its website and the transparency of pricing available. The website does not look the best, with some menu options not displaying correctly in some browsers. Besides a handful of rates listed, we had a hard time finding other mortgage rates on the website. The advertised prices are based on very solvent profiles. To get a personalized quote, you will need to obtain hard credit during the application process, which temporarily hurts your credit score but is necessary to get a mortgage.

Here’s what to know about Citizens Bank mortgages before you apply.

Citizens Bank Review: Types and Products of Mortgages

Citizens Bank offers conventional loans as well as government guaranteed mortgage products. However, some products are not available in all regions.

Citizens Bank: transparency of mortgage loans

Citizens Bank lists a handful of rate products for 30-year and 15-year fixed rate loans, as well as its 7-year / 6-month fully amortizing ARM. However, potential borrowers should sift through the fine print to learn that the advertised rates listed have a built-in automatic payment discount of 0.125%. Rates are also based on a 25% down payment and a 740 credit score.

To get a personalized quote based on your own credit profile, potential borrowers should go through the application process, including the hard credit call. It is difficult to find information on the initial loan costs on the citizens’ website. After researching the website, including reading the fine print, we had to call a loan officer at Citizens Bank to get information on the closing costs and other upfront loan costs involved.

Also in the fine print, we found that customers who live in states with Citizens Bank branches need to have their mortgage payment deducted from a Citizens Bank account to take advantage of the automatic payment discount. For those who live outside of the Citizens Bank physical footprint area, it is possible to get an automatic payment discount regardless of the financial institution used for mortgage payments.

Citizens Bank: mortgage rates and fees

Citizens Bank does not charge prepayment penalties, application or origination fees. Instead, the bank charges what it calls a processing and underwriting fee, which we learned when we spoke to a loan officer over the phone and asked. These fees are based on the loan amount, the type of property and the characteristics of the borrower. According to a Citizens Bank loan officer, it’s common to pay between $ 800 and $ 900 in total for processing and underwriting fees, although some loans have lower or higher fees.

Depending on your region, it is possible to benefit from additional discounts on rates and fees. An automatic payment discount of 0.0125% is available to anyone who sets up regular mortgage payments to be deducted from a checking account.

Citizens Bank has a program called Your Home Rewards which connects borrowers with a Citizens Network real estate agent and loan officer. If you use this program to buy or sell a home, you may be eligible for cash back of $ 350 to $ 6,500. The company claims to earn double the reward if you use the bank to finance a home after a sale through the program.

Refinancing With Citizens Bank

Refinancing a mortgage with Citizens Bank is very similar to obtaining an initial mortgage. It is possible to get cash refinance or refinance for a shorter term loan. You can find a checklist on the website to help you navigate the process and apply online. Refinancing can take anywhere from two weeks to 45 days (or more), depending on the situation.

The fees for refinancing with Citizens Bank are similar to the mortgage fees, with some differences depending on whether you are refinancing a second home or an investment property, and other factors. As with the buying process, you should call a loan officer or go through the application process to find out all of the fees involved.

Citizens Bank vs. other mortgage lenders

Citizen’s Bank Ally Mortgage Sebonic Financial
Minimum credit score 620 620 620 for conventional, 550 for FHA
Minimum deposit 3% for conventional loans *, 3.5% for FHA loans, 0% for VA loans, up to 20% for jumbo 3% for the conventional, up to 20% for the jumbo 5% for conventional, 3.5% for FHA, 0% for VA and USDA
Where does the lender operate? All 50 states and Washington, DC 37 states and Washington, DC All 50 states and Washington, DC
Main types of loans Conventional, FHA, VA, construction, jumbo, refinancing Conventional, jumbo, ARM, refinancing Conventional, FHA, VA, USDA, jumbo, refinancing
* In many cases, down payments less than 20% will come with private mortgage insurance (PMI), which covers the cost of the current mortgage in the event the borrower defaults on his loan.

How To Shop For The Best Mortgage Rate

Mortgage rates change regularly, and every lender is different when they set mortgage rates. Your rate will be a combination of market rates and your personal credit criteria, as well as the amount and type of loan you get. Consider getting a mortgage pre-approved first. With pre-approval, you have a better idea of ​​your rates and terms, as well as how much you can borrow.

However, you don’t have to rely on just one lender. Shop around for different rates and terms so you can potentially save thousands of dollars in interest and fees over the life of the loan. Gather quotes from multiple mortgage lenders and compare rates and closing costs. An online mortgage calculator can help you make a more informed decision.

Here is an example using a house with a price of $ 250,000 with a 10% down payment and a term of 30 years.

INTEREST RATE MONTHLY INTEREST AND PAYMENT OF THE PRINCIPAL INTEREST SAVED OVER THE TERM OF THE LOAN
3.25% $ 979
3.04% $ 953 $ 4,680

With an interest rate of 3.25%, the monthly principal and interest payment is $ 979. But with an interest rate of 3.04%, you save $ 26 per month on interest charges. This monthly interest difference appears to be a small amount, but $ 26 adds up over time, which is $ 9,360 in savings over 30 years.

EDITORIAL INDEPENDENCE

As with all of our mortgage lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information on our rating methodology, Click here.

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