United Bank: 2019 Home Equity Review

United Bank, which can trace its New England roots back to 1882, offers home equity loans and HELOCs. The community bank provides several options based on borrower needs, but its products are limited to select states only.

If you’re considering getting a home equity loan or HELOC, or home equity line of credit, through United Bank, here’s what you need to know.

Lender snapshot

If you live in New England, you may qualify for a home equity loan or HELOC from United Bank. Here are some highlights to consider before you apply:

• Loans and HELOCs range from $10,000 to $250,000.
• The minimum credit score to qualify is 640.
• Depending on the product, you can borrow up to a combined loan-to-value (CLTV) ratio of 100 percent.
• Home equity loan repayment terms range from five to 20 years, and HELOCs have a roughly 10-year draw period and a 30-year amortizing loan period.
• The home equity loan has no closing fees, but HELOCs do carry fees of up to $1,300 plus an annual fee and early termination fee.

Pros and cons

A United Bank home equity loan or HELOC may be a good fit for you if you live in a state where the lender operates. Before you apply, though, it’s important to consider both the benefits and drawbacks.

Pros

• Competitive rates: The lender’s home equity loan interest rates start at 6.244 percent APR, and HELOC rates are as low as 6.5 percent APR, as of June 2019. In contrast, according to Bankrate, the average home equity loan and HELOC rates are 7.18 percent and 7.37 percent, respectively, for the same time period.
• Flexible borrowing options: Borrowers can get up to a 100 percent CLTV with the bank’s 100 percent LTV HELOC. With the home equity loan and traditional HELOC, you can borrow up to a 90 percent CLTV, depending on your creditworthiness.
• No closing costs on home equity loans: You don’t have to worry about paying closing fees on a home equity loan from United Bank. There are, however, costs to be aware of with the lender’s HELOC products.

Cons

• Not available in all states: The lender primarily operates in Connecticut and Massachusetts, but the 100 percent LTV HELOC is also available in Florida, New York and Rhode Island. If you live in another state, United Bank is likely not an option.
• HELOC fees: The bank’s HELOCs come with closing costs, an annual fee and an early termination fee if you close the account within three years.
• Relatively high credit score requirements: You can qualify for a home equity loan or HELOC with a 640 credit score, but that maximum CLTV at that score is 65 percent. Better options start at a credit score of 680.

Mortgage products

United Bank offers a variety of mortgage products, including various home loans and “second mortgages” in the form of its three home equity products.

Home equity loan

With a home equity loan, you can borrow between $10,000 and $250,000, with repayment terms of five, 10, 15 and 20 years. CLTV limits range from 65 percent to 90 percent, based on your needs and qualifications.

HELOC

With the bank’s traditional HELOC, you can borrow between $10,000 and $25,000 if your home is located in Connecticut or Massachusetts. The initial draw period is nine years and 10 months, after which there’s a 30-year amortizing repayment period.

CLTV options range from 65 percent to 90 percent, based on your situation and creditworthiness.

100 percent LTV HELOC

With the bank’s 100 percent LTV HELOC, you can borrow up to a combined LTV of 100 percent between your first mortgage and the HELOC product. Loan amounts range from $10,000 to $250,000, and the same repayment terms apply as with the traditional HELOC.

With this product, in particular, it’s only available on single-family homes, and it must be your primary residence.

Lender fees

There are no closing fees on a home equity loan. With the HELOC products, however, closing costs can range from $540 to $1,300. There’s also a $50 annual fee and an early termination fee of $500 if you close your account within 36 months.

While the lender already offers competitive interest rates, there are a few opportunities to get interest rate discounts on the 100 percent LTV HELOC:

• You’ll get a 0.25 percent discount if you pay the closing costs (there are options available without closing costs)
• You’ll get a 0.25 percent discount if you use your HELOC to pay off at least $25,000 in third-party installment debt and borrow less than $75,000 total.
• You’ll get a 0.375 percent discount if you set up automatic payments from a United Bank Premier Checking account.

There is, however, a $24.95 monthly fee on the Premier Checking account unless your average balance is $10,000 or more, or your average balances in other linked accounts amount to $50,000 or more.

Borrowing requirements

To qualify for a home equity loan or HELOC with United Bank, you’ll need to live in a state where the lender operates, which can vary based on the type of product you choose.

There’s a minimum credit score of 640 on the home equity loan and traditional HELOC, but that credit score comes with a maximum 65 percent CLTV. With a 680 credit score and a 40 percent debt-to-income ratio, you can qualify for up to a 90 percent CLTV with the loan and traditional HELOC, or up to 100 percent LTV with the specialized HELOC.

If you have a 43 percent debt-to-income ratio, you can qualify but need a 720 credit score or higher.

How to apply

You can apply for a home equity loan or HELOC with United Bank through the lender’s website. You’ll start by picking which one you want, then click on the “Apply Now” link. You’ll need to provide several pieces of information during this process, including information about yourself, the property, your assets, income and expenses, and what you’re looking for in a loan.

Once you submit the application online, you’ll be assigned a loan officer who will process your application and work with you during the remainder of the process.

Get started

Before you apply for a home equity loan or HELOC with United Bank, shop around and compare multiple lenders to make sure you’re getting the best deal. If United Bank is the best fit for you, start the application process online.

If you have any questions during that process, you can call 860-512-2400 or send an email to mortgages@bankatunited.com. Also, the lender has more than 55 branches in Connecticut and Massachusetts, and you can visit any of them to speak with a loan officer directly.

How Bankrate Rates United Bank

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.