Truist only offers home equity lines of credit (HELOCs) and not traditional home equity loans. Truist HELOCs are available with fixed-rate, variable-rate and interest-only repayments.
A HELOC is an open line of credit that allows homeowners to borrow against the equity in their home. Rates, fees and repayment terms vary by lender, but a HELOC typically lets you access the line of credit for ten years and gives you 20 years to repay the amount you borrow.
HELOCs are a flexible option for everything from financing home improvements to paying off higher-interest debt (HELOCs tend to have lower interest rates than credit cards).
Continue reading our full review of Truist, Money’s top choice for fixed-rate HELOCs.
Best Fixed Rate HELOC
Truist’s fixed-rate HELOC option comes with flexible repayment terms and low fees. Additionally, Truist will cover most, if not all, of the closing costs associated with your fixed-rate HELOC.
Fixed-rate HELOCs with Truist have repayment terms of five to 20 years, which allows customers plenty of leeway in determining which term best suits their personal finances. And as long as you keep the line of credit open for three years, Truist will pay your closing costs and waive your repayment.
Pros and Cons of the Truist Home Equity Loan
- It offers HELOCs with fixed, variable and interest-only repayments
- Simple online application
- Covers closing costs
- Offers HELOC only
- $50 annual fee for some states
- Investment properties are not eligible
- Limited availability
The professionals explained
It offers HELOCs with fixed, variable and interest-only repayments
Truist offers the flexibility of three different types of HELOC products. In addition to the aforementioned fixed rate option, the company also has variable interest rate and interest only repayment HELOCs. Adjustable-rate HELOCs give you the option to pay less in the future if the rate drops, and interest-only repayments allow you to make smaller payments during the draw period.
Simple online application
Truist’s online application is simple and typically takes 15 minutes or less to complete. In most cases, you can expect a response to your request within one business day. Once your application has been approved and all necessary documentation is in order, it can take an average of 30 to 35 days to close from the date of your application.
Covers closing costs
With Truist, you can choose whether to pay your closing costs or have the bank pay them for you. However, you must keep the line of credit open for at least three years. If you close your line of credit before this deadline, you will have to repay the closing costs to Truist.
Cons explained
Offers HELOC only
Truist’s home equity products are limited to lines of credit. The company does not offer home equity loans. If you are interested in this option, check out our list of the best home equity loans.
An annual tax of $50 applies to residents of some states
The trust requires an annual fee of $50 for the following states: Alabama, Arkansas, California, Florida, Georgia, Indiana, Kentucky, New Jersey and Ohio.
Real estate investments are not eligible
Truist HELOCs are not available for investment properties, mobile or manufactured homes. As with most banks, the property used as collateral must be a home, a single-family unit, a condominium or a primary and secondary residence.
Limited availability
As of this writing, Truist HELOC is only available for properties located in any of the 19 states where the bank operates, plus Washington DC.
Truist Home Loan Offers
Truist offers a variety of banking products for consumers and businesses. However, when it comes to home equity loans, the only product they offer are lines of credit.
Home Equity Line of Credit (HELOC)
The Truist Home Equity Line of Credit features competitive rates ranging from 9.52% APR to 16.00% (or the state maximum).
Truist HELOCs come with fixed or variable rates and the typical 10-year draw period and 20-year repayment period offered by most lenders. However, you can also choose to make interest-only payments.
Here’s how Truist’s refund options work:
Fixed rate reimbursement
With this plan, the interest and loan terms are determined at the beginning of the contract and will not change over the life of the loan. You will select a 60, 120, 180 or 240 month plan which will determine your monthly principal payment. Add interest and applicable fees and you have your fixed monthly payment.
Variable rate reimbursement
With Truist’s variable rate repayment option, your repayment amount will fluctuate as interest rates rise or fall. The minimum monthly payment is based on the balance owed and includes both interest and a percentage of the principal balance. Each payment you make will help reduce your principal balance, and paying more than the required minimum will affect the amount of future payments. The minimum monthly payment with this option is 1.5% of the total outstanding balance of the loan amount.
Repayment of interest only
With this payment plan, the minimum monthly payment is equal to the interest earned on the balance owed in the previous month. With Truist’s interest-only repayment, your minimum monthly payment will not reduce your principal balance, and the interest rate is variable. This option is useful for those who need to make smaller payments up front, but can commit to larger payments later.
Truist Home Equity Loan Pricing
Aside from interest, the costs associated with a Truist HELOC are setup fees, origination fees, annual fees and closing costs. As mentioned above, there are nine states where you will have to pay a $50 annual fee. The Truist Fixed Rate HELOC may also be subject to a $15 setup fee, depending on your line limit and terms. credit.
As for closing costs, Truist pays closing costs for lines of credit up to $500,000. Please note that Truist’s coverage of closing costs may result in higher interest rates. Another cost to keep in mind is prepayment penalties. With a Truist line of credit, you may have to pay origination or closing costs if the account is closed within three years of opening.
Truist Home Equity Loan Accessibility
Truist has more than 2,500 branches in 17 states and Washington DC. In addition to physical branches, Truist has a robust website with many resources and a mobile banking application.
Availability
Truist products and services are available in the following states:
- Alabama
- Arkansas
- California
- Florida
- Georgia
- Indiana
- Kentucky
- Maryland
- Mississippi
- Alabama
- North Carolina
- New Jersey
- Ohio
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Virginia
- West Virginia
- Washington DC
Contact information
Truist customer service is available Monday – Friday, 8am – 8pm EST and Saturday, 8am – 5pm. Through the Truist help center you can also find branches, consultants or connect with Truist on social media.
Telephone: 844-4TRUIST, outside the United States: +1-910-914-8250
Website: www.truist.com
Find location: www.truist.com/locations
User experience
Truist has earned an A+ business rating from the Better Business Bureau (BBB) and has been accredited since 1986. While Truist has earned this accreditation, we’ll delve into some customer concerns below. The BBB does not take customer reviews into account when deciding the grade and credibility of a business.
Truist Home Equity Loan Customer Satisfaction
Customer reviews on the BBB give Truist low ratings for communication and response times. Many reviews highlight the need to speak to multiple representatives before finding a solution to a problem or waiting days for a call back. Other reviews indicate that while Truist has a mobile app, it is often down or has issues.
Many of the negative customer reviews reference the 2019 merger between SunTrust and Truist. The reviews say the banking problems arose after Truist’s acquisition of SunTrust and that resolving the problems has been difficult and frustrating. Many customers on BBB say they ran into problems with their home mortgages or HELOCs once SunTrust switched to Truist.
Frequently asked questions about Truist Home Equity lines of credit
How does the application process for a Truist HELOC work?
The application can be completed online within 15 minutes and the decision is made within one business day.
What are the eligibility requirements for a Truist HELOC?
Truist will evaluate your credit, and the company says good credit increases your chances of being approved. A good credit score is between 670 and 739. The lender will also look at your income, assets, and other factors to determine loan approval.
Is it worth buying a HELOC from Truist Bank?
Truist HELOC may be worth considering if you’re looking for a lender with minimal fees and flexible repayment options. It stands out above all because you can choose between variable rate repayment, interest only and fixed rate.
How we rated Truist Home real estate loans
Our team has reviewed information from the Truist website, customer review sites, and the BBB to compile a reliable review of Truist HELOC options.
We considered the following factors:
- Loan options
- Price transparency
- Application process
- Customer satisfaction
Money Truist Home Equity Loan Review Summary
As with any other financial decision, opening a HELOC or home equity loan has pros and cons.
Truist HELOCs may be a good option for you if you are familiar with online applications and don’t expect to have to speak to customer service by phone very often. Truist also has many branches, making it a good option for visiting branches in person.
Truist is accredited by the BBB, but there are some red flags in online consumer reviews, particularly when it comes to customer service. Even so, because of Truist’s flexible HELOC options, they’re worth considering when you begin your search for a home equity line of credit.