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 promotional 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 when used for home improvements that substantially improve your property’s value (consult a tax advisor regarding the deductibility of interest).

What is the Promotional Rate?

The SunTrust Equity Line Promotional Rate is determined by subtracting 1.51% from the Wall Street Journal Prime Rate (4.75% as of 10/31/2019), so currently it is 3.24% APR1. This is in effect for 12 months and applies for an initial advance of $25,000 or more taken at closing under the variable rate option. For balances remaining at the end of this special rate period, and all subsequent advances under this option, interest will accrue at the standard rate and margin, which start as low as 4.75% (Prime + 0%)2.

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.

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 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 866.472.6612 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.

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.

What is the process for closing on a SunTrust Equity Line of Credit?

American Title, Inc. (ATI) was contracted by SunTrust to perform loan closings and notary services in California. Once your home equity line has been approved, ATI will contact you, on behalf of SunTrust Bank, to set up your closing date, time and location. When everything has been confirmed, they will contact you again and provide the name of the agent who will meet you.

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.3


1 Special Rate Advance: The special advance rate is variable for 12 months and is applicable only for an initial advance of $25,000 or more taken under the variable rate option at or before the closing of the line of credit, to be disbursed immediately upon expiration of any applicable rescission period, and is valid for applications received by 10/15/2019 and that close by 12/31/2019. An initial advance of $25,000 or more taken at closing under this option shall accrue interest at the Special Rate for a period 12 months from the date of disbursement of the initial advance. Special Rate Advance is not available for purchase money equity lines and may not be used to pay off or pay down any SunTrust debt. Advances subsequent to the Special Rate Advance(s) under these options, as well as any balances remaining upon the expiration of the Special Rate, shall accrue interest at the standard rates(s) and margin(s) as described below and in your Equity Line agreement. Offer subject to change without notice at any time.

2 SunTrust Equity Line: Minimum required line amount for this interest rate is $100,000 and is based on a maximum Combined Loan-To-Value (CLTV) ratio of 70% or less. The Prime Rate means the highest per annum “Prime Rate” of interest published from time to time by The Wall Street Journal in its “Money Rates” listings, which was 4.75% on 10/31/2019. Standard APRs are variable during the 10-year draw period and 20-year repayment period and applies only to the variable rate option; are based on your collateral property location, credit line amount, Combined Loan-To-Value (CLTV) ratio and other factors; and can range from Prime + 0% (currently 4.75% APR) to Prime + 6.91% (currently 11.66% APR) (during the 20-year repayment period for this option, the APR will continue to be calculated at a variable rate and your minimum monthly payment will be 1/240th of the total balance at the end of the draw period, plus interest and any applicable fees/charges). The maximum APR is 18% for properties located in FL, GA, TN, AL, SC, VA, MD, DC, AR, WV and MS. The maximum APR is 16% for properties located in NC. Offer and rates subject to change without notice. Offer is only available for owner-occupied, single-family, primary residences and condominiums located in CA, FL, GA, TN, AL, SC, VA, NC, MD, DC, AR, WV or MS, and is not valid on manufactured homes or cooperatives. SunTrust must be in a valid first- or second-lien position. Exclusions and limitations apply. Property insurance is required, and if it is determined that the collateral property is located in a Special Flood Hazard Area, flood insurance is required. Consult your tax advisor regarding the deductibility of interest.

Fixed Rate/Fixed Term advances are available for terms of 60 months, 120 months, 180 months, and 240 months. A term of 360 months is available but only for such advances taken at closing and to be disbursed immediately upon expiration of the rescission period. Each must be at least $5,000 per advance, and you may have up to five (5) outstanding advances under this option at any given time. The APR is indexed to the Prime Rate in effect on the day preceding the first day of the billing cycle in which each such advance is taken, which was 4.75% as of 10/31/19, plus a margin. Current fixed rates range from 6.39% to 7.54%. For each advance taken under the Fixed Rate/Fixed Term option, there will be a $15 processing fee if and as allowed by applicable law. 

3 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 $2,000.


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