Home Equity Line of Credit 101
Whether you’re sending a child (or yourself) to college, finally adding that sunroom, or just wanting to have funds in your back pocket, a Home Equity Line of Credit (often called “HELOC”, pronounced hee-lock) can help you balance big expenses with a lot of flexibility. Like a credit card without the plastic, once you’re approved for a total amount to borrow, you’ll make advances (aka withdrawals) up to that amount whenever you want — zero fees or approval required.
Borrow as you go, pay over time
You’ll have 10 years to borrow, and 20 years to repay. For the first 10 years of your HELOC, you’ll only pay the interest, and only on the amount you actually borrow. Starting year 11, you’ll begin to repay the borrowed loan amount plus interest, and you’ll have 20 years total to pay back what you use.
- Get your closing costs covered: When you work with our approved appraisal and title partners, all of your closing costs are on us.
- Enjoy limitless withdrawals: There’s no limit on how many times you can withdraw funds and no fee for a credit line advancement, so take what you need when you need it.
Home Equity Line of Credit
Type Term APR* Interest Only Payment | Loan to value is less than 80% N/A 7.75% - 12.25%** Interest Only Payment | Loan to value is greater than 80% N/A 8.25% - 11.25%**
HELOC's adjust quarterly on Jan.1, April 1, July 1, and Oct. 1. Maximum adjustment of 1% per quarter. The maximum rate is 15.00%. *APR=Annual Percentage Rate. The ANNUAL PERCENTAGE RATE you receive will be based on credit worthiness and loan to value amount. Not all members will qualify for the best or lowest rate. All loans are subject to approval. Rates, terms, and conditions are subject to change.
Auto-pay Advantage: A discount of 0.25% will be deducted from the above stated annual percentage rates when the payment is received automatically from a Fortera draft account. This discount is only available on new loan transactions with an effective date on or after the date of this addendum. The annual percentage rate will default back to the normal rate in the event the payment status or draft account status changes.
**Loan to Value Ratio (LTV): A ratio used by lenders to calculate the loan amount requested as a percentage of the value of a home. To determine the loan to value ratio, divide the loan amount by the home's value. The LTV ratio is used to determine what loan types the borrower qualifies for as well as the cost and fees associated with obtaining the loan.
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