Citibank Mortgage Review
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]
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.
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.
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