Home Equity Loans
Need extra money for adding on to your home, college expenses, or a vacation?
Put your home to work for you with our Home Equity Revolving Line of Credit loan. This type of loan can provide the cash you need for all kinds of reasons – adding on to your home, college expenses, or a vacation. A variable rate based on the New York Prime Rate Index, interest only payments and a 5-year term with the principal due at maturity gives you unlimited opportunities*.
Loan Definitions
- Adjustable Rate Mortgage (ARM):
Interest rate is tied to price of Treasury Bills and adjusts at specific periods. Rates are usually 2% lower than fixed rate mortgages during first year. Most ARMS cannot go up more than 2% per adjustment period or 6% for life of loan. - Annual Percentage Rate (APR):
Actual rate you pay during the life of the loan, including interest, points, and certain closing costs. - Appraisal:
An official valuation of market value of a house. Have the house you want to buy appraised so you don’t pay more than it is worth. - Closing:
Transfer of ownership of a house when you sign loan papers and deed is recorded. - Credit Report:
Report on how timely you pay your bills, debt you are carrying, and your current monthly payments. Credit history is important when a lender considers your loan application. - Fixed Rate Mortgage:
Interest rate is locked in for life of loan, so future changes in interest rates won’t affect it. - Insurance:
Hazard insurance and title insurance are required when getting a mortgage. Mortgage insurance also may be required. - Interest:
Cost you must pay to lending institution for money you borrow. - Lock-in:
To get a set interest rate when applying for a mortgage and not when you close. - Points:
Part of the closing costs a lender may charge. One point equals 1% of the amount borrowed. - Prepayment Clause:
Provision permitting you to pay off mortgage early to reduce interest costs. Some lenders charge a penalty for prepayment. - Principal:
Amount you borrow, excluding interest and points.
*Based on the prime rate as published in the Money Rates section of The Wall Street Journal on the tenth day of each month or the first business day thereafter. Your Annual Percentage Rate may be higher based on several factors including your credit history and the percentage of equity available in your home. Your APR may vary but it will never be greater than 18%. Fees to open range from $100 to $1500. You are required to maintain property insurance at your expense. Consult your tax advisor for tax deductibility.
Home Equity Lines of Credit ("HELOCs") are not available to customers whose primary residence to be used as collateral is located in the state of Texas.
