KeyBank, a Cleveland-based financial institution, offers home equity loans and home equity lines of credit (HELOCs) to qualifying homeowners. While the home equity loans are limited to 15 states, the HELOCs are available in 44 states. Customers can borrow up to $500,000 through KeyBank’s products. KeyBank offers a streamlined application process for both types of loans, making it one of the best lenders for home equity loans and HELOCs.
KeyBank is best suited for individuals looking for longer repayment terms, as it offers a 30-year repayment option for its home equity loan. Additionally, the bank offers a low minimum loan amount of $10,000 for its HELOC, making it ideal for those who only need access to a smaller amount of money. KeyBank also provides various benefits for customers, such as an interest rate discount if they open a checking and savings account with the bank.
However, there are some limitations to KeyBank’s services. The bank only offers home equity loans in 15 states and HELOCs in 44 states, excluding certain areas. Additionally, there is a high minimum loan amount of $25,000 for home equity loans, and an early termination fee if the loan is paid off within 36 months. Despite these drawbacks, KeyBank offers competitive rates and options for borrowers.
KeyBank provides three types of home equity products: home equity loans, HELOCs, and rate-lock HELOCs. The home equity loan allows borrowers to access funds from $25,000 to $500,000 at a fixed rate, with repayment terms ranging from five to 30 years. The HELOC has a 15-year draw period and repayment period, with borrowers able to borrow between $10,000 and $500,000 at a variable interest rate. KeyBank also offers a rate-lock HELOC option, allowing borrowers to lock in a fixed rate on a portion or all of the loan balance during the draw period.
KeyBank charges an origination fee for home equity loans, annual fees for HELOCs, and potential closing costs if a closing agent is involved. There is also an early termination fee if the loan is closed within 36 months of opening. While KeyBank does not disclose specific credit score requirements, borrowers are typically required to have a minimum credit score in the mid-600 range, along with sufficient home equity and steady income. Applicants must also live in one of the qualifying states and have current hazard insurance on their property.
To apply for a home equity loan or HELOC with KeyBank, customers can apply online or in person at one of the bank’s branches. Applicants will need to provide necessary documents such as recent Form W-2, pay stubs, tax returns, and mortgage information. Those who open a checking and savings account with KeyBank during the process can receive an interest rate discount. KeyBank provides customer service through phone lines and bank branch appointments for existing clients.
