FAQ - HOME EQUITY LINE OF CREDIT
1. What is the maximum?
The maximum Home Equity Line of Credit available is $100,000. You may receive up to 100% of your home's loan-to-value (LTV). Property values are based on the lesser of the current appraised value or a Freddie Mac Home Explorer (HVEŽ) with a condition report.
2. What is the interest rate?
Click here for current rates. The Annual Percentage Rate (APR) at the time of the first disbursement of an Equity Loan is the initial APR. This APR is subject to change when Quarterly Interest Rate Adjustments are made (effective the first of January, April, July and October). The APR will not exceed 18%.
3. Is there a fee to apply?
We do not charge a loan application fee and there are no points or mortgage servicing fees.
4. What is the processing cost?
The normal processing costs are in the $450 to $650 range, but different tax jurisdictions, as well as other variables could cause this estimate to increase.
5. What do I need to apply?
We will need a completed Loanliner Home Equity application, along with a copy of the Deed to your property and the most recent end-of-year statement from your mortgage holder(s), a copy of your latest tax assessment and a copy of your homeowner's insurance policy. Also provide verification of income listed on your application.
- We do require all parties on the Deed to sign the legal documents supporting the loan.
6. Must I borrow the full amount for which I apply?
No, regardless of the amount you establish, your initial loan advance need not be more than $5,000. Thereafter, you may draw upon your loan in amounts not less than $250 by telephone, mail or in person. Loan advances may be made for up to 60 months from the date of the approval of your loan.
7. How are my monthly payments determined?
During the draw period of 5 years, the minimum payment will be 1% of the balance as of the last advance that was taken from the line of credit. After the 5 year draw period is over, the repayment period is 120 months (10 years), with no prepayment penalty. The minimum monthly payment will be established at the time of each advance and you will be advised of the loan payment amount. The payment amount will never be less than $25. During the repayment period your payment will change if the annual percentage rate increases or decreases. Each time the annual percentage rate changes, we will adjust your payment to repay the balance within the repayment period.
Our Home Equity Loan can provide significant new financial opportunities for you by permitting current use of the equity in your home.
If you believe that a Home Equity Loan is appropriate for you, please see a Member Counselor for an application. If you would like more information. please call or visit one of our branch offices.
Note: The information above is subject to change with out notice.
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