Fifth Third Bank Home Equity Review

Fifth Third Bank offers a comprehensive range of home equity products, including both home equity loans and lines of credit. Operating in several states in the U.S., the lender is known for its competitive lender fees and ethical business practices.

Fifth Third Equity Flexline

Fifth Third Bank’s Equity Flexline is a versatile HELOC that allows you to withdraw funds as needed and lock in a fixed rate on all or a portion of the balance. You can have up to three rate locks on three separate balances at a time.

Each rate lock requires a $95 fee, but you can unlock at any time without incurring a fee. A fixed-rate HELOC can be particularly beneficial for borrowers who prefer the security of a fixed rate but enjoy the flexibility of a line of credit. Just keep in mind that fixed-rate HELOCs tend to have higher starting interest rates than their variable-rate counterparts.

Home Equity Loan

Fifth Third’s home equity loan is an excellent option for homeowners who only want to access the equity in their homes once. The loan is available as a second-lien home equity installment loan, meaning you can access the equity in your home while keeping your existing first mortgage in place. This makes it an affordable and relatively low-risk option.

Like most home equity loans, you’ll receive the funds as a lump-sum payment and repay the loan at a fixed rate over a set period of time. You can choose terms ranging from three to 30 years and loan amounts from $3,000 to $500,000. This flexibility gives you various options to customize your borrowing experience according to your financial needs.

Easy Home Refi

Fifth Third’s Easy Home Refi is a cash-out refinancing option open to homeowners who own their property outright. This offering provides eligible homeowners with the ability to tap into the equity that their homes have built up over time, allowing them to access a lump sum of cash that they can use to cover a wide range of expenses, while also giving them the opportunity to secure a lower interest rate.

Discounts

The best mortgage lenders offer discounts that reduce the overall cost of borrowing for eligible consumers. According to a lender representative, Fifth Third Bank may offer additional discounts based on customer relationships. However, no additional information was provided to Forbes Advisor. Ask a loan officer about available discounts as part of your application process.

Customer Service

Current and prospective borrowers can contact Fifth Third via phone Monday through Friday from 8 a.m. to 6 p.m. ET and Saturday from 10 a.m. to 4 p.m. ET. You can also schedule an appointment or visit one of the bank’s branches.

In addition to these options, Fifth Third has a customer service chat feature that you can access through your online account.

Fifth Third Bank holds strict borrower requirements to ensure its home equity products are only issued to those who can afford them.

Minimum Credit Score

Fifth Third home equity products are available to borrowers with credit scores as low as 660. That said, the higher your credit score, the lower the interest rate you may qualify for.

Minimum Income

Fifth Third doesn’t publish income or debt-to-income (DTI) ratio requirements beyond saying that the lower an applicant’s DTI, the more likely they are to be approved.

In general, you should have a stable and sufficient income to cover your monthly payments. Most lenders require a DTI of 43% or lower.

Loan-to-Value Ratio

Home equity products are available up to a combined LTV ratio of 90%. This means that you can access up to 90% of the appraised value of your home, minus any existing mortgage debt.

Lien Position

Fifth Third’s home equity options require a first or second-lien position.

Related: Liens: What They Are And How They Work

Fifth Third doesn’t charge borrowers origination fees for its home equity loans or HELOCs. However, the Easy Home Refi requires a $299 origination fee that is included in the loan amount.

As for late fees, Fifth Third charges borrowers who fail to make on-time payments within the applicable grace period. However, the lender doesn’t publish these fees online. For borrowers in New York, late charges are based on the loan terms and assessed in accordance with state and local guidelines.

Fifth Third Bank’s home equity products also have competitive annual percentage rates (APRs), with APRs starting as low as the current prime rate for its Fifth Third Equity Flexline.

You can apply for a Fifth Third home equity loan over the phone seven days a week. Speaking with a company representative can help you select the best home equity product for your needs.

You can also apply by submitting a brief digital contact form online or visiting a local branch. Support for home loan applications is available Monday through Thursday from 8 a.m. to 8 p.m. ET, Friday from 8 a.m. to 6 p.m. ET and Saturday from 9 a.m. to 3 p.m. ET.

According to a lender representative, Fifth Third’s approval times average less than 30 days.

There are several steps you can take if Fifth Third Bank denies your application. First, find out why your application was denied. You can call customer service to discuss reasons for rejection, or the lender will mail an adverse action notice. This document explains why you were denied and how your creditworthiness played a role.

Next, address the problems that resulted in your rejection. For example, if you were denied due to poor credit, try to improve your score before reapplying. Once you address the underlying issue, reapply for the loan. Fifth Third doesn’t impose a mandatory waiting period before you can reapply.

Finally, explore other borrowing options. Fifth Third offers a variety of loans and lines of credit for different financing needs. Alternatively, you can look into other home equity lenders.

Fifth Third Bank holds an A+ rating from the Better Business Bureau (BBB) and is BBB-accredited. Still, its customer reviews through the BBB and Trustpilot paint a different picture. The bank currently has a 1.3-star rating based on 136 customer reviews on Trustpilot and a 1.1 out of five-star rating based on 474 customer reviews on BBB.

Negative reviews primarily focus on issues with the lender’s banking platform. Complaints also reference limited customer service hours and unhelpful customer service representatives. A mortgage review references trouble with servicing and the online payment platform. Of course, these reviews only represent a small percentage of Fifth Third’s customer base, so your experience may differ.

We graded Fifth Third Bank based on features that have a meaningful impact on the cost of a home equity loan and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.

We award bonus points if a lender doesn’t require closing costs on its home equity products, offers a specialty rate discount, a fixed-rate HELOC option, customizable terms for its home equity products and/or a fully online application process.

Our scoring method is broken down as follows:

• Interest rate. 25%
• Time to close. 20%
• Accessibility. 20%
• Customer service experience. 20%
• Loan options. 15%
• Bonus points. Up to 25 points

We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.