Your home’s value can work for you through a home equity line of credit. A HELOC makes cash available when and if you need it, and you write personal checks against your credit line.
We offer HELOCs ranging from $25,000 to $200,000, and the money is available for five years. During those five years, you make interest-only monthly payments on the amount borrowed and then you can take up to 15 years to repay the balance.
- Loan rate is a Variable Annual Percentage Rate (APR) based on the highest "Prime Rate" published on the last business day of each month in the Eastern Edition of The Wall Street Journal Money Rates Table (the "Index"), plus a margin. As of the last change date of December 17, 2015 Prime Rate is 3.50%.
- As of August 4, 2016 the current margin for lines of credit is 1.00%, resulting in corresponding variable APR of 4.50%.
- The Maximum APR (Lifetime rate cap) is 16.00%
- The Minimum APR (Lifetime floor) is 4.50%
- Interest may be tax-deductible (consult with your tax advisor)
- Homeowner’s insurance is required
- No application fee or closing costs on most lines of credit*
For more information, contact our Loan Center today at (800) 249-3832.
*For a line of credit between $25,000 and $100,000, no fees will be charged if:
- Initial draw is $10,000 or more and balance is maintained for at least twelve months and,
- Loan is maintained for 3 years or more. If the loan balance falls below $10,000 during the first year or if the line of credit is terminated for any reason within three years, you must reimburse Hometown Bank for any third-party fees which were incurred to open your loan. These fees will vary depending on the dollar amount of the line of credit.
For a line of credit between $100,001 and $200,000, the borrower is responsible for all closing costs. There are no penalties imposed for early repayment.
For all requests, regardless of loan size, in which a recorded first mortgage on the property does not exist, the borrower is responsible for the associated costs in reference to the title insurance.