Citibank Mortgage Review

Citibank

The well-known bank has a wide variety of mortgage options, including those for short terms and low down payments without required mortgage insurance.

30Y APR
2.75%–3.163%
J.D. Power
3/5
Fees
11
SimpleScore
3.2 / 5.0
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SimpleScore
Citibank
3.2
  • Perks
    4
  • Credit Impact
    4
  • Customer Satisfaction
    3
  • Product Variety
    4
  • Fees
    1
Citibank was founded in 1812 as City Bank of New York. Today, Citibank has a presence in 97 countries around the globe and is one of the largest banks in the world, with $1.84 trillion in assets. Citibank offers a range of financial services, including credit cards like the Citi Rewards+™ Card, and Citibank home mortgage loans. Citibank mortgage rates typically aren’t included among the best mortgage rates. Citibank reviews and mortgage Citibank ratings fall short, meaning it’s not one of the best mortgage lenders.
Full review

Our Two Cents — Citibank has diverse mortgage and refinance options, including 3/1 ARM mortgages and a unique HomeRun Mortgage for 3% down and no mortgage insurance requirements. Customer service ratings are lacking, however, and borrowers will need to watch out for application fees and other fees.

Citibank at a glance

Lender Loan Amount APR Range Terms Key Benefit
Citibank Up to $1,472,550 2.75%–3.163% 15–30 years, 7/1 ARM Diverse terms are available

What we like about it

Citibank has a unique home loan program called the HomeRun Mortgage. With this Citibank mortgage program, borrowers can make a down payment for as low as 3% without having to pay mortgage insurance. The program is available for both purchasing and refinancing, with loans of up to $765,600.

If you bank with Citibank, you can look forward to a “relationship reward” discount off your Citibank mortgage rates, up to 5/8% off the interest rate depending on how much you have deposited or invested with the institution.

Things to consider

Citibank charges a non-refundable home mortgage fee for applying. You also won’t be able to get preapproval or prequalification online, as some other lenders offer.

Citibank also falls in the middle of the pack of lenders in terms of customer satisfaction. In the JD Power 2019 U.S. Primary Mortgage Servicer Satisfaction Study, nine other lenders had better scores than Citibank’s 3/5 rating.

Also, if you’re looking for a USDA loan, you can’t get one with Citibank. This is a con for homebuyers and refinancers interested in living in rural areas who want to take advantage of potentially lower mortgage rates.

[Read: 7 Crucial Steps to Buying a Home in 2020]

What you need to know

Citibank offers jumbo mortgages for more than $1.47 million, with no minimum loan amounts for federal VA or FHA loans.

One benefit of Citibank mortgages is flexible terms. In addition to fixed 15-year and 30-year mortgage options, there is also a 7/1 ARM mortgage available. That’s a large number of options compared to some lenders. The HomeRun Mortgage program is another unique feature, offering a mortgage for as little as 3% down with no mortgage insurance requirements.

To apply for a Citibank mortgage, you’ll need to have information about the property you want to buy or refinance, your employment situation,  income details (including W2s and recent pay stubs) and asset information (including checking, savings and retirement funds).

Start the process online or call 1-800-248-4638. You can also stop into a Citibank branch with the required information to meet with a mortgage representative. Citibank also offers an online option to have the lender call you.

Collateral and criteria

Like most conventional mortgage requirements, most Citibank mortgages require a minimum credit score of 620. You’ll only need 3% down to get a mortgage with Citibank, but with a VA loan, you may be able to get a mortgage without a down payment. If your credit score is lower than 620, you can still talk with a mortgage representative to explore other lending options or learn how to increase your score to get approved.

You will need to provide employment details to get a loan. The required debt-to-income ratio is lower than 43% to get approved for a Citibank loan.

Citibank vs. Rocket Mortgage

For those looking for a USDA loan, Rocket Mortgage is a good option, since it offers all the products Citibank does plus USDA loans. Its convenient online process makes Rocket Mortgage a leading refinance option. Under Quicken Loans, APRs for fixed mortgages with Rocket Mortgage range between 3.088% to 4.62%, which tend to be slightly higher than Citibank.

If you’re a Citibank customer, you could save money on your mortgage with a Citibank mortgage. But if you want to refinance right from your phone without a lot of hassle, or get a USDA loan, Rocket Mortgage is a nice alternative. Also, the minimum credit score with Rocket Mortgage is lower, at 580, making this a good option for borrowers with lower credit scores.

[Related: Buying a Home with Bad Credit]

Citibank vs. Bank of America

Bank of America has similar APRs compared to Citibank, with a 3.568% APR for 30-year fixed mortgages, a lower 2.859% for 15-year fixed mortgages and a 2.937% APR for 5/1 ARM variable mortgages. Like Citibank, Bank of America offers perks if you bank with the company and apply for a mortgage with the bank. If you bank with Bank of America, you can save on mortgage costs by qualifying for a reduction of up to $600 in the mortgage application fee.

Bank of America offers the same types of mortgage products Citibank does, but with limitations. There’s not a 3/1 ARM offered at Bank of America. However, the bank has its own Affordable Loan Solution mortgage product, offering a loan for a 3% down payment with no mortgage insurance required. Overall, it might make sense to choose the lender you already bank with to maximize potential savings.

Too long, didn’t read?

Citibank offers a nice variety of home loans with additional options compared to similar lenders. While it doesn’t have a USDA loan, you might be able to get a 3% down mortgage with no insurance requirements or a 3/1 ARM if that’s the type of loan you’re after. While Citibank does offer name recognition as one of the largest lenders in the world, customer service scores aren’t as high compared to other lenders.

Keep reading

Methodology

The SimpleScore is our proprietary scoring metric to compare products and services at The Simple Dollar in a transparent, evidence-based way. Our editorial team identifies five quantifiable aspects to compare for every brand, determines the rating criteria for each aspect score, then averages the five aspect scores to produce a single SimpleScore. For mortgages, we compared perks, credit impact when checking rates, customer satisfaction, product variety and fees for every major lender. Our ratings are meant to be a directional tool to help you in the process of choosing a mortgage loan provider. Be sure to continue your research and shop around for the best mortgage loan that fits your specific needs.

We welcome your feedback on this article and would love to hear about your experience with the mortgage loans we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

Nicki Escudero
Nicki Escudero
Contributing Writer

Nicki Escudero is a freelance writer and journalist with more than 18 years of experience in the publishing industry, writing for international publications such as USA Today, Entrepreneur, Marketing Land, American Art Collector magazine and the Arizona Republic. She is passionate about helping readers discover helpful tips that lead to happier, healthier lives. A former Australian expat, Nicki has a passion for world travel and loves to learn about new cultures.

Reviewed by

  • Andrea Perez
    Andrea Perez
    Personal Finance Editor

    Andrea Perez is an editor at The Simple Dollar specializing in personal finance. Prior to that she specialized in digital marketing content for online learning websites. She holds a master’s degree in journalism and media studies from the University of South Florida.