Citizens Bank mortgage review 2023

Citizens Bank can originate home loans in all states and Washington, DC, but only loan officers in 20 states, mostly in the Northeast.

The lender publishes its best available interest rates on its website for 15- and 30-year standard mortgages. Citizens’ prices are generally lower than the national average. For example, its 30-year fixed mortgage starting at 5.89% was much lower than the national rate of 6.33% in mid-January 2023, according to Freddie Mac.

These rates include the 0.125% discount available if you automatically pay your mortgage from a Citizens checking account and choose paperless reporting.

Borrowers can get a 0.25% discount on their mortgage from the Citizens account. In some states, you can get autopay discounts on mortgages and HELOCs if you use any bank checking account.

Homebuyers in select states can receive up to $6,500 when they buy or sell a home through Citizens Bank’s home equity program. The higher the price of the house, the higher the reward. You do not have to have a HomeStory mortgage to qualify, but you must work with a HomeStory Real Estate Services broker.

Types of Loans

Citizens offers the following types of mortgages:

  • common purchase: 15- or 30-year rate
  • Standard refinancing: 15- or 30-year fixed rate
  • 7-year, 6-month fully adjustable-rate mortgage refinance (ARM)
  • Jumbo Buy or refinance: fixed rate, variable rate or interest only
  • Construction (or renewal) in perpetuity
  • FHA
  • Rural Housing Services/USDA
  • VA
  • Fannie Mae Home Ready: for low to moderate income home buyers
  • ONE mortgage program (Massachusetts only): for low and moderate income home buyers.
  • HELOC with 10-year grace period and 15-year repayment
  • The GoalBuilder HELOC is up to $25,000

Small Credit

Citizens Bank does not disclose whether it has a mortgage minimum except for its GoalBuilder HELOC, which has a $5,000 minimum. Some lenders don’t offer it small mortgage loanswhich can be a challenge for people buying, renovating or refinancing affordable properties.

Advanced Loans

The loan amount depends on the type of mortgage and qualifications. Citizens do not specify how much you can borrow with a jumbo loan.

Other loan restrictions are based on federal law, not bank requirements. For example, the most you can borrow from an FHA loan in 2023 is $472,030 in low-cost areas and $1,089,300 in expensive areas such as New York and Los Angeles. The average loan limit for 2023 is $726,200 in most parts of the country and $1,089,300 in expensive areas. To borrow more, you may need a jumbo loan.

Loan service

Citizens Bank appears to be servicing some mortgages as a result. So if you get your loan from Citizens Bank, you can also pay at Citizens Bank.

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