How do I qualify for a home equity loan or line of credit?
 
We basically look at 3 things. We look at the value of your house. This determines how much equity you have available to borrow. We look at your credit report. This shows us your other credit obligations and payment history. Finally we verify your income so that we can assess the affordability of the new loan or line of credit. 
 
Are there closing costs?

In most cases your closing costs will average between 1% - 2% of your line or loan amount. All of these costs can be rolled into your loan. There are no out of pocket costs.

What is the term of a Home Equity Line of Credit (HELOC)
 
You have a 10 year draw period followed by a 20 year repayment period.  The full term is 30 years.

Can I make interest only payments?
 
During the 10 year draw period you can make interest only payments. After 10 years, you must make fully amortized principle and interest payments for the remaining 20 year term of the loan.

How is the minimum payment calculated for a HELOC?
The minimum payment is base on your balance. We take the balance times the annual interest rate and divide that number by 12. For example if your balance is $100,000 and your interest rate is 5% the annual interest would be $2500 ($50,000 X 5% ). We then calculate the monthly interest amount by taking the annual amount and dividing by 12. (2500/12) This would make the minimum payment $208.34 

Can I payoff my HELOC or Equity Loan early?

Yes… You are free to pay off your line of credit at any time. 

Is there an annual maintenance fee?

The annual fee for most of our line of credit products is $99.00 per year. There is no annual fee for our home equity loan.

Is the HELOC a variable rate product?

Our HELOC is based on the Wall Street Journal Prime Rate plus a predetermined margin. Your rate will adjust up or down with the WSJ  Prime Rate.

Is the Home Equity Loan a fixed rate product?

Yes!  Our home equity loan has a fixed rate and payment for the life of the loan.

What are the rate caps on the HELOC?

It can never go above 18% or the maximum allowed by law. It will never go below 4%.

How do I access the funds in my HELOC?

When you open your line of credit you will be advanced the entire line of credit at once. No additional draws will be permitted for the first 90 days. All future draws can be $1,000 all the way up to your credit limit. 

Do I need an appraisal?

For smaller loans and lines of credit we will use a drive-by appraisal unless there are factors that make a drive-by appraisal ineffective.
For larger loans and lines of credit a full appraisal is required.  

Can we use an appraisal that you already have?

In some cased we can accept an appraisal that has been done within the last 90 days.