Home Equity Loans and Credit Lines

Definitions:
· 2^nd Mortgage Loan:  (Home Equity Loan) A fixed rate loan with a fixed repayment term.  Loans are usually 30-yr loans with a balloon in 15-years or amortized over 5- to 20-years.

· HELOC:  (Home Equity Line Of Credit)  A credit line available to reuse over time, but tied to your home so interest it typically tax deductible.  The rate is variable and payments are "interest only"

· The revolving lines of credit allow you to access funds as needed for a 10-year draw period.   After the draw period, there is a 10-year repayment period. 

· The variable rate is tied to PRIME.

· A fixed rate "partition feature" typically applies.  This allow a portion of the credit line to be moved into a fixed rate category with a fixed rate payment. 

· Variable rate draws can be obtained by check, credit card or at the time of closing.  Allow 30-days for delivery of checks, so funded needed within 30-days should be obtained at closing.

· HELOC payments are a minimum of Interest Only

· An annual fees range from $50 to $75.

· There is no prepayment or early termination fee is you select the Low Closing Cost Option.

· SPECIAL INTRODUCTORY RATES are offered from time to time.  One example recently offered: The first 6-months at PRIME rate minus 1%.  After the 6-month introductory period your credit line resumes its stated note rate.

• Rates for a Second Mortgage Loan or Home Equity Credit Line vary based on the following criteria: