People’s United Bank is a community-based bank in New England, with locations in several states, including Connecticut, New York and Massachusetts. The bank has been expanding in recent years, acquiring several banks and finance organizations to expand its reach in the Northeast. One of these banks was United Bank, a Connecticut-based company previously reviewed on this page.
People’s United Bank offers a home equity lines of credit (HELOC) product. The product has a fairly broad range of loan amounts and repayment terms, making it a good choice for borrowers who prioritize flexibility in a home equity lender.
People’s United Bank’s home equity product rates and terms vary by location. The details presented below are based on the Hartford, Connecticut, area.
People’s United Bank snapshot
|Loan types offered||HELOC|
|APR range||HELOC: 3.50% to 18% (with autopay)|
|Loan amount range||HELOC: $25,000 to $750,000|
|Minimum credit score required||Not specified|
|Repayment terms||HELOC: 9.5-year draw period and 20-year repayment period|
|Average time to approval||Not specified|
Loan details will vary by location. Loan terms and APRs presented are based on the 06002 ZIP code.
There are many reasons to consider a HELOC from People’s United Bank. Here are some of the top benefits:
- Fixed-rate HELOC option: If you take out a HELOC with the company, you may switch your balance (or even just a portion of it) to a fixed rate with the bank’s SelectLock option for a $50 fee. You must convert at least $10,000, but you may have up to three outstanding SelectLock balances open at any given time.
- Fewer fees: You won’t pay any application fees or closing costs. Plus, there’s no origination fee on a HELOC from People’s United Bank; however, there’s a $75 annual fee that’s waived for borrowers with a People’s United Bank checking account.
- Larger loan amounts: If you qualify, you can borrow as much as $750,000 with a People’s United Bank home equity loan or HELOC — which is on the higher end for lenders.
It’s also important to consider the disadvantages of a HELOC from People’s United Bank, including:
- Only available in the Northeast: Although People’s United Bank is expanding its reach with the acquisitions of local banks, it only serves customers in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.
- Limited information about eligibility available online: You might have a hard time determining if you’re eligible for a home equity product, since the lender doesn’t advertise credit or income requirements online. To find out if you’re eligible, you’ll need to complete an application or contact a bank representative.
- Fees apply if you aren’t a bank customer: Unless you have a checking account with People’s United Bank, you’ll need to pay a $75 annual fee on your HELOC.
Types of fees charged
People’s United Bank doesn’t charge application fees or closing costs for its HELOC product.
If you take out a HELOC, there are a few additional fees you should know about. First, there’s a $75 annual fee unless you have a People’s United Bank checking account. There’s also a $500 prepayment fee if you close your account within two years of the date on your note. When you first take out your HELOC, you may also be on the hook for third-party fees, including title insurance, mortgage tax and appraisal fees.
Loan products offered
People’s United Bank currently offers a home equity line of credit for New England homeowners
If you’d prefer to receive money on an as-needed basis rather than in a lump sum, then a HELOC could be a better option for you. With People’s United Bank, HELOCs are available from $25,000 to $750,000, and the minimum APR is 3.5 percent. The draw period is nine and a half years, with a repayment period of 20 years. During the draw period, People’s Bank imposes a minimum draw of $500.
People’s United Bank HELOCs come with a variable rate, meaning that it will go up and down during your draw period. But if you’d rather have more stability, you can use the bank’s SelectLock option to convert to a fixed rate for a $50 fee. You may have up to three fixed-rate balances open at once, and the minimum amount for each lock is $10,000.
How to qualify for a HELOC with People’s United Bank
People’s United Bank doesn’t outline its income or credit score requirements on its website. To check if you qualify, you’ll need to submit an online application or get in touch with the bank.
The bank does specify, however, that your property must be one of the following in order to qualify for a home equity loan or HELOC:
- A primary residence (with one to four units).
- A second home (with one unit).
- A condominium.
How to get started
Applying for a home equity product through People’s United Bank is pretty straightforward. The easiest way to do it is through the bank’s online portal, where you’ll be asked to provide information such as:
- Your details, including your name, birthdate, marital status and Social Security number.
- Your current income sources.
- Your other properties or investments.
- Your outstanding debts.
- The purpose and estimated amount of your home equity loan or HELOC.
You can also speak with a People’s United Bank representative by calling 1-855-782-5363. If you’d rather complete an application in person, visit one of the hundreds of People’s United Bank locations across New England. Representatives are available every day; hours vary by branch.
How Bankrate rates People’s United Bank
|Bankrate Score||4.3||Scoring factors|
|Availability||3.0||Minimum HELOC $25,000 and minimal product information available online|
|Affordability||4.8||Eligible borrowers can receive an APR as low as 3.50%|
|Customer experience||5.0||Online portal with 7-day customer service and well-rated mobile apps|
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.