Citi announced the launch of the Citi Offset Mortgage, a new program for Citi first mortgage customers allowing them to use their Citibank Day-to-Day Savings Account balances to earn rewards which are paid against their mortgage balance. This unique program allows Citi customers to pay off their loan more quickly while paying less interest over the life of their mortgage. “We’re constantly listening to our customers, and we understand that paying off their loans faster and paying less interest is important. With Citi Offset Mortgage, our customers also enjoy the peace of mind that they can access their savings for any need or for emergencies,” said Sanjiv Das, president and CEO of CitiMortgage. “We recognize that our customers’ needs are continuously evolving and as an organization, we are committed to offering financial solutions that help reduce complexities in their financial lives. This new program is unique in that it helps our customers optimize their financial portfolio, better manage their debt and allows their money to work harder while maintaining complete flexibility.” Rolled out successfully as a pilot program in 19 Citibank branches last year, the Citi Offset Mortgage will be offered to Citi customers interested in refinancing or purchasing a new home in the New York tri-state area. “Consumers want their banking relationship to deliver greater rewards and value,” said Stephen Troutner, Citi’s head of Branch Network and Banking Products for U.S. Consumer Banking. “The Offset Mortgage is a perfect example of how we are helping customers manage their finances by leveraging a broader relationship with Citibank.” The deposits in the customer’s Citibank Day-to-Day Savings Account are used to reduce or “offset” the outstanding mortgage balance. Each month, an “offset reward” calculated from savings deposits will be paid by Citi and applied towards mortgage loan principal. Example: a participating customer with a loan amount of $500,000 at a 3.75 percent interest rate (3.802 percent APR) and a deposit account with a $50,000 balance will initially receive a monthly “offset reward” of nearly $160. This allows them to pay off their mortgage approximately two years faster, and saves over $32,000 in interest over the term of their mortgage.