HOME EQUITY LINE OF CREDIT (HELOC)
If you need money for school tuition, lengthy home improvement projects or whenever a series of amounts may be needed over an extended period of time, our Home Equity Line of Credit is the right product for you.
| Rate: |
Variable Rate equal to Prime* (Wall Street Journal Prime Rate) |
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Rate is adjustable quarterly |
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| Rate Cap: |
Annual - 2% up or down; Lifetime floor - 4%; Lifetime ceiling – 16% |
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| Closing Costs or Annual Fee: |
None |
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| Prepayment Penalty: |
None |
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| Term: |
15 years |
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| When amounts can be drawn against the line of credit: |
For the first 5 years (draw period), any amounts can be drawn down provided the principal owed never exceeds the maximum approved line of credit. NO draws are permitted during the last 10 years of the term. |
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| When amounts owed must be paid: |
As long as an unpaid balance exists, both principal & interest must be paid monthly throughout the entire term of the loan. |
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| How payment is calculated: |
Equal payments of principal & interest sufficient to repay the current balance over the remaining term of the loan. As new draws are made the monthly payment is recalculated. |
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| Maximum Loan Amount: |
85% of home value less any existing liens or $50,000 whichever is less. |
REQUIRED DOCUMENTATION:
Verification of income
- Employment Income – Most recent pay stub or recent W-2. If self-employed – Most recent Federal Income Tax Return
- Rental – Lease agreement
- Alimony or Child Support – Court Decree (if applicable)
- Pension or Investment – Check voucher or statement of account showing regular deposit.
Legal Description:
If you have NOT had a prior Home Equity loan with us, we need a “legal description” of your property and the exact names in which title is held. Both can be obtained one of two ways:
- If you have or had a mortgage on the property, look for the mortgage deed sometimes titled “Open-end Mortgage Deed” among the documents you received from the lender. The “property description” which describes the land on which your home resides, is normally contained within that document and most frequently the last page as an attachment. If located, we will need to copy the pertinent pages of the deed.
- The Town Clerk’s Office of the town in which your property is located can provide you with both a copy of the “legal description” and the exact names of the titleholders.
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