Want to know more about how Home Equity Loans, Loan-to-Value, and the Rate Lock?
Here's how it all works:
You can use your HELOC funds at any time, for whatever purpose you choose: Debt consolidation, Home remodeling or repairs, Education expenses, More. The payments you make on your HELOC balance can vary over time. And it's possible for your payments to increase as interests rates go up. Our HybridHELOCk is a new way to protect your payments from rising rates.
The amount you can borrow depends on the value of your home, the Loan-to-Value (LTV) offered, and how much you owe on your first mortgage. For example: Your home's estimated value($200,000) x the LTV(80%) = $160,000 Less The amount you owe on your first mortgage($125,000) = The maximum equity loan amount we will offer($35,000).
You can now choose to lock in your interest rate on your entire balance or just a portion for a term of 5, 10, or 15 years. Locking your rate while it's low will protect your payment if interest rates rise and keep your payments fixed so you can budget and plan ahead.
You'll get the stability of fixed monthly payments on your rate-locked balance, and keep room for more purchases. Any new purchases will be at our variable rate, but you have the option to add another lock at any time during the draw period.
As you make payments, more of your Line of Credit balance will be available to use again. You can have up to 3 locks at a time. After three locks, you can add another lock after you pay off one locked balance.
In the past borrowers who want to use their home's equity had to choose between the flexibility of a line of credit or the steady payments of a fixed rate loan. Why not both? You don't have to choose with our new HybridHELOCk. There's no time like now. If you're ready to get started, we're ready to help.