Fifth Third Bank: 2024 Home Equity Review

Benefits

• If you prefer a HELOC from Fifth Third over a home equity loan but don’t want the uncertainty of a variable interest rate, you can lock in a fixed rate at any time — just pay a $95 fee to convert some or all of your balance and unlock it at any time for free.
• Whether you prefer in-person service or help from a distance, you get your pick of customer support either online, over the phone or at a local branch.

Drawbacks

• Unlike many home equity lenders, Fifth Third doesn’t allow you to fill out an application online; you’ll have to call the bank or visit a branch. You might also have to visit a branch before closing.
• Fifth Third’s HELOCs and home equity loans are only available to borrowers in Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee and West Virginia. You’ll also need an eligible checking or savings account with the bank to qualify.

Home equity loan products offered

Fifth Third Bank offers both HELOCs and home equity loans. HELOCs are available to borrowers who have an existing checking or savings account with the bank. Lines can range from $10,000 to $500,000. You’ll make interest-only payments for the 10-year draw period, then payments on interest and principal for the following 20-year repayment period.

When you use the debit card tied to your HELOC, you’ll earn one rewards point for every $3 you spend. You’ll also get a rewards bonus of 5,300 points after your first qualifying purchase. Points are worth 1 cent apiece and can be redeemed for cash back.

HELOCs also come with the option of a fixed rate lock, meaning you can lock all or part of your HELOC balance if you want to take advantage of a low rate. The cost for each lock is $95, but you can have up to three locks active at the same time.

Like the HELOC, Fifth Third’s home equity loan is available to customers with an existing checking or savings account. You can borrow between $10,000 to $250,000 with a repayment term of 10 years to 30 years. To get the best rate, you must have a loan-to-value (LTV) ratio no higher than 70 percent on a primary, owner-occupied residence in the second lien position.

Types of fees charged

Fifth Third doesn’t charge any closing costs for its home equity products. There is, however, an annual fee of $65 for HELOCs after the first year, although eligible Preferred checking customers can get that waived. If you want to switch your HELOC interest rate from variable to fixed, you’ll need to pay a $95 fee. Additionally, if you’re using a condo to secure your home equity loan, you might have to pay a Condominium Questionnaire fee of up to $600.

How to qualify for a home equity loan with Fifth Third Bank

Fifth Third Bank doesn’t disclose any of its eligibility requirements online. Typically for home equity products, you’ll want to have a credit score in the mid-600s or above and a debt-to-income (DTI) ratio of no higher than 43 percent.

Note: You can only apply for a home equity product if you live in one of the 11 states where Fifth Third operates: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, South Carolina, Tennessee and West Virginia. You must also hold an eligible checking or savings account with the bank.

How to apply with Fifth Third Bank

You can start the application process for a Fifth Third HELOC or home equity loan online, though you’ll need to complete the application over the phone or in person. You can also apply entirely over the phone at 1-866-351-5353 or at a local branch. Fifth Third representatives are available by phone Monday through Thursday, 8 a.m. to 8 p.m. ET, Friday, 8 a.m. to 6 p.m. ET, and Saturday, 9 a.m. to 3 p.m. ET.

How Bankrate scored Fifth Third Bank

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.