meLOC (Home Equity Line of Credit)

Make your home equity work harder and smarter.

Between bucket list dreams and to-do list projects, you have exciting choices to make. Fortera’s meLOC lets you focus on these instead of deciding between the locked rate of a home equity loan or the flexibility of a line of credit. meLOC gives you both. It’s our Home Equity Line of Credit (HELOC) that’s ready when you are and offers you the advantage of locking in fixed lower rates until the balance is paid.

How does a Home Equity Line of Credit Work?

A Home Equity Line of Credit provides funds for you to balance larger expenses with big time flexibility. Once approved, you have full access to your funds at the ready. You can make withdrawals up to your approved limit whenever you would like (certain fees may apply) and our meLoc even lets you check off multiple items on those bucket and to-do lists together. You’ll have the ability to use up to three rate locks* at one-time. Each lock will have its own rate that is locked in for a 10-year term. Once you’ve paid off one of the locks, you can add another in its place.

Take advantage of interest rate changes with a variable APR* starting at 9.00%¹ or 9.50%².

Stages of a HELOC:

1. Draw Period: (the first 10 years) Use your line of credit while making interest-only payments with the option to pay extra against the principal.
2. Optional Rate Lock: for up to three portions of your balance, you can lock the rate and start making payments. NOTE: Locks are subject to fixed rate pricing which may be lower than your current variable rate.
3. Repayment Period: (the last 20 years), make monthly principal and interest payments to repay the outstanding balance. Note that you won’t be able to draw funds or exercise rate locks from the HELOC during this time.

¹Interest only Payment Loan to value is less than 80% (9.00%-11.50%APR). ² Interest Only Payment Loan to Value is greater than 80% (9.50%-10.00%APR) HELOC’s adjust monthly on the first day of the month. There is no limit on the amount by which the annual percentage rate can change during any one-year period. The maximum rate is 18.00%. The minimum rate will never be below 3.25%. *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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