SunTrust Equity Line Frequently Asked Questions | SunTrust Loans

SunTrust Equity Line Frequently Asked Questions

Frequently Asked Questions

What is home equity?

Home equity is the difference between what you currently owe on your home and its appraised value in the current market. For example, if you owe $100,000 on your home and it's appraised for $250,000, then you'd have $150,000 in home equity. A portion of your equity may be available for you to borrow with a home equity line of credit. You can also use the calculator on our website. Use your best estimate for how much your property is worth.

How does a home equity line of credit work?

A home equity line of credit is secured by your home and gives you a 10-year borrowing period that allows you to borrow as much as you need, up to your approved credit limit. As you repay the balance, your available credit is replenished and you can borrow against it again, as needed. When the borrowing period ends, you'll begin a 20-year repayment period and continue to make monthly principal and interest payments so you'll pay off the balance in full by the end of the repayment period. You can make additional principal payments at any time.

What is the interest rate?

The Annual Percentage Rate (APR) is calculated based on a variety of factors, including credit score, loan-to-value, line amount, and location of the property securing the line of credit. With a SunTrust Home Equity Line, you can choose between a fixed or variable interest rate on each draw you take. See specific rates in your area.

How does the interest rate compare to other forms of credit?

A home equity line of credit is typically a lower-rate borrowing option than many other forms of credit. You may also qualify for our special low variable rate for 12 months. In addition, unlike most other forms of credit, any interest you pay on a home equity line of credit may be tax-deductible (consult a tax advisor regarding the deductibility of interest).

How are the payments determined?

Your required monthly payment is based on your current line of credit balance and includes both interest and part of your principal balance, so you start reducing your balance right away. Drawing additional funds or paying more than the minimum required payment will affect your future monthly payments. For draws on the SunTrust Equity Line taken under the variable rate repayment option, the minimum monthly payment is equal to 1/360th of the outstanding principal balance plus interest and applicable fees.

For draws taken under the fixed rate/fixed term repayment option, the repayment term you select will determine the minimum monthly payment plus interest and applicable fees. The annual percentage rate (APR) will be determined at the time the advance is posted to your account. There is a $15 service fee for each Fixed-Rate/Fixed-Term advance.

Do I need to have great credit?

Your credit score is only one of the factors considered in the underwriting process, so having good credit, along with the other qualifications (sufficient equity in your home, allowable loan-to-value ratio, etc.) is usually sufficient for equity line approval.

Is my interest tax deductible?

Interest you pay on an equity line that is secured by your primary residence may be tax deductible. You should consult with a tax advisor regarding the deductibility of interest.

What information do I need to have available to start my application?

Here's what you'll need:

  • Personal information (name, home address, phone number, and social security number)
  • Co-applicant's personal and employer information, if applicable
  • Employer information (name and phone number of employer)
  • Financial assets (description, financial institution, and value)
  • Financial debt (lender name, payment amounts, and balances)
  • Collateral information (asset, lender name, balance/value, and description)


A SunTrust Bank representative will contact you after an application is submitted to review your information and request supporting documentation as needed.

Are there any restrictions on what type of home I have for an Equity Line?

The SunTrust Home Equity Line of Credit can be secured by an owner-occupied, single-family, primary residence or condominium located in CA, FL, GA, TN, AL, SC, VA, NC, MD, DC, AR, WV or MS, and is currently not valid on second homes, manufactured homes or cooperatives. SunTrust must be in a valid first- or second-lien position.

When are SunTrust representatives available by phone?

We are available to answer your questions, discuss your account and review your options. Call us at 800.279.4824 Monday through Friday 8 a.m. to 8 p.m. or Saturday 8 a.m. to 5 p.m. ET to get answers to your questions. 

Can I choose a fixed rate and payment on my line?

Definitely. The SunTrust Equity Line of Credit account offers two flexible options to repay your line during the 10-year draw period. The repayment option you choose for each advance can help you manage your cash flow each month. You may also use multiple repayment options at the same time. You can take up to five Fixed-Rate/Fixed-Term outstanding balances at one time. The minimum amount for each advance is $5,000, and you have the choice of the following terms: 60, 120, 180 or 240 months. A term of 360 months is also available but only for advances taken at closing that are disbursed immediately after the rescission period has ended.

How long does it take to get a home equity line of credit?

It takes less than 15 minutes to fill out an application for a SunTrust Home Equity Line. The turnaround time from application to closing averages 30 – 35 days, which is one of the fastest times among our bank peers.

Do I have to pay closing costs?

SunTrust will advance most, if not all, of the closing costs on your behalf and waive reimbursement as long as your account is kept open for at least three years.

DISCLAIMERS

1 For new lines of $10,000 or more, SunTrust will advance certain costs on your behalf, including the first property/collateral valuation obtained by SunTrust, but excluding: any subsequent property/collateral valuation not required by us; and, if required, title insurance and related fees, and any new or increased homeowner’s and/or flood insurance premiums. For equity lines secured by a condominium unit, you may be required to pay a Condominium Questionnaire fee, between $50 and $500, to your Home Owner’s Association. However, if your account is closed within three (3) years, we will add any closing costs we advanced on your behalf to your outstanding balance for our reimbursement. Total closing costs generally range from $100 to $1,500.

Home Mortgages Resource Center

Investment and Insurance Products:

Are Not FDIC or any other Government Agency Insured   Are Not Bank Guaranteed  May Lose Value 

© 2018 SunTrust Banks, Inc

equal housing logoSunTrust Bank is an Equal Housing Lender. Member FDIC

equal housing logoEqual Housing Lender. SunTrust Mortgage, Inc

SunTrust, SunTrust Mortgage, SunTrust PortfolioView, SunTrust Robinson Humphrey, SunTrust Premier Program, AMC Pinnacle, AMC Premier, Access 3, Signature Advantage Brokerage, Custom Choice Loan and SunTrust SummitView are federally registered service marks of SunTrust Banks, Inc. All other trademarks are the property of their respective owners.

Services provided by the following affiliates of SunTrust Banks, Inc.: Banking products and services are provided by SunTrust Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank, SunTrust Delaware Trust Company and SunTrust Banks Trust Company (Cayman) Limited. Securities, brokerage accounts and insurance (including annuities) are offered by SunTrust Investment Services, Inc., a SEC registered broker-dealer, member FINRA, SIPC, and a licensed insurance agency. Investment advisory services are offered by SunTrust Advisory Services, Inc., a SEC registered adviser. GFO Advisory Services, LLC is a SEC registered investment adviser that provides investment advisory services to a group of private investment funds and other non-investment advisory services to affiliates. Mortgage products and services are provided by SunTrust Mortgage, Inc.

SunTrust Mortgage, Inc. - NMLS #2915, 901 Semmes Avenue, Richmond, VA 23224, 1-800-634-7928. CA: licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, IL: Illinois Residential Mortgage Licensee #MB-989, Department of Financial and Professional Regulation, 100 W. Randolph, Suite 900, Chicago, IL 60601, 1-888-473-4858, MA: Mortgage Lender license #-ML-2915, NJ: Mortgage Banker License - New Jersey Department of Banking and Insurance, NY: Licensed Mortgage Banker—NYS Department of Financial Services, and RI: Rhode Island Licensed Lender.

"SunTrust Advisors" may be officers and/or associated persons of the following affiliates of SunTrust Banks, Inc.: SunTrust Bank, our commercial bank, which provides banking, trust and asset management services; SunTrust Investment Services, Inc., a registered broker-dealer, which is a member of FINRA and SIPC, and a licensed insurance agency, and which provides securities, annuities and life insurance products; SunTrust Advisory Services, Inc., a SEC registered investment adviser which provides Investment Advisory services.

SunTrust Private Wealth Management, International Wealth Management, Business Owner Specialty Group, Sports and Entertainment Group, and Legal and Medical Specialty Groups and GenSpring are marketing names used by SunTrust Bank, SunTrust Banks Trust Company (Cayman) Limited, SunTrust Delaware Trust Company, SunTrust Investment Services, Inc., and SunTrust Advisory Services, Inc.

SunTrust Bank and its affiliates do not accept fiduciary responsibility for all banking and investment account types offered. Please consult with your SunTrust representative to determine whether SunTrust and its affiliates have agreed to accept fiduciary responsibility for your account(s) and if you have completed the documentation necessary to establish a fiduciary relationship with SunTrust Bank or an affiliate. Additional information regarding account types and important disclosures may be found at www.suntrust.com/investmentinfo.

SunTrust Robinson Humphrey is the trade name for the corporate and investment banking services of SunTrust Banks, Inc. and its subsidiaries, including SunTrust Robinson Humphrey, Inc., member FINRA and SIPC.