More Flexibility. More peace of mind.
Many of our clients find that a Home Equity Line of Credit is a great tool for unplanned expenses or consolidating higher interest rate debt like credit cards or auto loans. They're also ideal when it comes to financing a home remodel or repairs. And if you don't need to draw on the line now, that's OK. Enjoy the peace of mind of knowing it's there when you need it.
Here’s how they work:
Your home's equity is typically defined as the difference between the appraised value of your home and the outstanding balance on your first mortgage. You can borrow funds from a portion of the available equity in your home on an as-needed basis. Repayment is flexible. Pay interest-only on the outstanding balance during the 10-year draw period. Once the repayment period begins, you will have 15 years to repay the outstanding balance including principal and interest. If you want, you can pay down your balance without penalty, as long as your account remains open.
Benefits of a Home Equity Line of Credit include:
Competitive interest rates. Interest rates are generally lower than other types of credit like credit cards and auto loans.1
Access to funds. Access available funds during the draw period by simply writing a check when you need it.2
Flexible payments. Make payments only on the portion you use.2
Potential tax benefits. Interest you pay may be tax deductible, consult your tax adviser for details.
Our Home Equity Line of Credit features:
No Closing Costs3
No title or appraisal fees3
Rate Discount with Automatic Loan Payment from a Fremont Bank Personal Checking Account4
Ready to get started?
Consult with one of our local loan agents by calling 866-997-7359. Find out how easy it is to access your home’s equity.
1 All home loans are subject to credit qualification, income verification, and collateral evaluation. Additional restrictions, limitations and exclusions may apply. Property insurance may include flood insurance, required. Home Equity Line of Credit features variable rates based on the Prime Rate published each day in The Wall Street Journal Money Rates Table (the “Index”), plus a margin. The APR can change monthly, but will not vary above 18% APR, or below 2.99% APR. The index as of the last date changed on 12/17/2008 is 3.25%. As of 03/01/2015, the variable rate for home equity credit lines of $20,000-$250,000, with a combined-loan-to-value ratio (CLTV) up to 75% range from 3.75% APR to 4.75% APR on an owner-occupied 1-4 family residence. APR includes a 0.50% interest rate discount for maintaining automatic loan payments from a Fremont Bank personal checking account. Higher rates may apply for credit limits below $20,000 or above $250,000, and/or lien position. Rates are subject to change without notice.
2 The Home Equity Line of Credit maximum term is 25 years: 10-year draw period, followed by 15-year repayment period. During the draw period you may obtain advances from your available line of credit. The minimum monthly payment during the draw period is interest-only on the funds you use. Once the repayment period begins you may no longer make advances on the credit line and you will have 15 years to repay the outstanding balance including principal and interest.
3 No Closing Cost Loans are subject to terms and conditions of Fremont Bank’s Application Fee Agreement, which lists the specific costs and fees the borrower will not pay. Borrower is responsible for paying all fees and charges imposed by brokers or an existing third party lender (for example, payoff demand statement fee and/or a reconveyance fee) as well as any prepayment penalty imposed by any third party lender or Fremont Bank. You may be required to pay certain fees to open this credit line. These fees generally total between $0 and $500. The $95 set-up fee due at account opening. The $75 annual fee is waived for the first year. If you terminate your HELOC account within 36 months of opening it, you will be required to pay an early closure fee of $500 plus any reconveyance and recording fees Fremont Bank paid on your behalf.
4 Discount only applicable as long as payments are set up for automatic deduction from a Fremont Bank personal checking account. Only one automatic payment discount per home equity line of credit will apply. The removal of any discount will increase the rate.