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Some customers complained that they had to visit a local branch to close their line of credit, but this is something that only happens once, and so is not a huge factor in our review. Suntrust has some of the lowest amounts for minimum and maximum value of the lines of credit they offer. This has a number of advantages f you aren’t sure how much a project will cost but don’t want to take out the maximum loan on your property to be safe. Truist’s website does not provide information on criteria such as minimum credit score, combined loan-to-value ratio, debt-to-income ratio, membership requirements or income. However, the bank does look at your credit score, income, employment and outstanding debt.
Thus, for most homeowners, a HELOC might be less expensive. Unlike a traditional HELOC, the fixed-rate/fixed term HELOC doesn’t have a draw period and a repayment period. The amount you can borrow is based on the amount you have available in your line of credit. You can have up to five of these fixed draws at any time. Based on the term chosen, rates range from 3.99 percent to 9.94 percent. Bankrate.com is an independent, advertising-supported publisher and comparison service.
SunTrust Home Equity Line Of Credit – Makeoverarena
Government Refinance Program
Offer is only available for owner-occupied, single-family, primary and secondary residences and condominiums located in the Truist footprint and is not valid on manufactured homes or cooperatives. Property insurance is required, and, if applicable, flood insurance will be required. A personal loan gets you cash quicker and at competitive rates.
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If you have a SunTrust bank account you can also get the SunTrust Access 3 line of credit and receive a small reduction on the interest rate of your HELOC by signing up for automatic payments. Medical professionals looking to purchase a home can also access “doctor loans” in certain southeastern states. These loans 100% financing mortgages to medical professionals, including interns and fellows.
Customers can choose to pay the closing costs for their HELOCs or have the bank pay them for a slightly higher interest rate. Mark Cussen is a financial counselor with more than 13 years of experience and has professional designations as a CFP®, CMFC and AFC. Mark has worked in all segments of the financial industry from investment management to mortgage loan origination, life insurance and annuities, financial planning and income tax preparation. He currently works with the U.S. military, helping service members transition financially into civilian life and in other capacities. Mark also sells life insurance and annuities on the side. He graduated from the University of Kansas with a Bachelor’s degree in English.
SunTrust Home Equity Loans and Home Equity Lines of Credit
They charge a variable rate of interest that is tied to the prime rate. This is a major financial index that is published daily inThe Wall Street Journal. Most HELOC lenders have a maximum loan-to-value ratio that they use when they compute the amount of the borrower’s HELOC. This ratio is usually 80 to 85 percent, although there are lenders who will go as high as 90 or even 100 percent, depending on various circumstances. Home Equity Loans from SunTrust give homeowners the agreed-upon amount in a single large payment. These are fixed-rate loans with a set payment schedule, usually of 5-10 years.
And getting a HELOC is usually less complicated than doing a cash-out refinance. SunTrust is currently offering a promotional rate of interest of 4.24% for the first year of the draw period for qualified applicants who make an initial withdrawal of at least $25,000. Then the rate will rise to anywhere from 5.25% to 6.47%. A 0.25% discount is available to current SunTrust customers who elect to make automatic payments out of a SunTrust checking account. The next period is the repayment period, where the borrower starts to repay the principal amount that was withdrawn from the credit line during the draw period. If the borrower made interest-only payments, then the amount of the payment will increase when the repayment period begins.
Truist must be in a valid first- or second-lien position. Applicants must occupy the second home a minimum of 14 days per calendar year, and there is a limit of one home equity line from Truist per individual or joint borrower. A Truist representative will contact you after an application is submitted to review your information and request any required supporting documentation, such as tax statements and copies of paystubs. With a HELOC, you can borrow against a portion of your total equity. Typically, lenders allow you to borrow a total combined amount of 75 to 90% of your home’s value. To calculate your potential HELOC amount, simply subtract your outstanding mortgage balance.
Once the lender has all of this documentation, it will pull the borrower’s credit report and get their credit score. They will also order an appraisal in most cases, and then an inspection if the appraisal uncovers any major issues. An interior appraisal is also required in some instances.
The third recommended alternative is using a credit card, which can be great for borrowing modest sums over a few months. However, SunTrust/Truist’s published card rates are 15.49% – 24.49% APR, with only one card offering a lower range of 13.49% – 22.49%. Therefore, unless absolutely necessary, borrowers would be unwise to charge large sums for long periods to credit cards. However, SunTrust/Truist also allows HELOC customers to fix the rates of some, or all, of their borrowing. Yet customers can do this only at the time money is withdrawn from the line of credit. So borrowers should reserve this rate-fixing option for times when they’re drawing relatively large sums.
Plus, a dedicated loan officer will be there to answer all your questions. The bank scored 825 – a little below the industry average of 851 – in the J.D. Meanwhile, SunTrust/Truist gets the Better Business Bureau’s top (A+) rating. SunTrust Bank Home Equity Loans will typically fund home equity loans within 3 and 7 days of approval.
But doing a cash-out refinance means that one has to refinance one’s entire existing mortgage. So, unless a borrower has a higher rate than the one he or she would now be offered, this is unlikely to be a viable option. Another drawback is that cash-out refinances tend to have much higher closing costs than do other forms of borrowing. Suntrust’s interest rates are pegged to the prime rate, but they offer a promotional rate of 2.99% APR for 15 months, which is a much better deal than other lenders will offer for a comparable product.
Oct 3, 2022 — If you want to tap into your home equity for cash, a home equity line of credit is a great way to do it. Comments regarding tax implications are informational only. Truist and its representatives do not provide tax or legal advice.
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