Many of our clients find that a Home Equity Line of Credit (HELOC) 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 equity line now, that's OK. Enjoy knowing it's there now and when you need it for whatever you decide to use your HELOC account for. Now, we offer even more options with our HELOC Interest-Only and HELOC 360 plans. Read on to learn whether either is right for you.
Too Much High-Interest Debt?
A Home Equity Line of Credit can be used to consolidate high-interest debt such as credit cards or installment loans into a single monthly payment. Try our Debt Consolidation Calculator to see if a HELOC is right for you.
Calculate Your Payments
Benefits of Home Equity Lines of Credit include:
- Competitive interest rates. Interest rates are generally lower than other types of credit like credit cards and auto loans.
- Access to funds. Access available funds during the draw period when you need it by simply writing a check for as little as $300, transferring funds to your Fremont Bank checking account online, or in person at one of our branches.
- Flexible payments. Make payments only on the portion you use.
- Potential tax benefits. Interest you pay may be tax deductible, consult your tax adviser for details.
- Revolving credit line. As you pay down the balance, the available credit line amount becomes available for use again during the Draw Period.
With a home equity line of credit, you are borrowing money from the available equity in your home. A home's equity is typically defined as the difference between the appraised value of the home and the outstanding mortgage balance. Generally you can borrower up to 80% of the value of your home less the amount you owe.
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.
Offer is valid for applications received January 3, 2017 - August 31, 2017. All home loan programs 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 6/14/2017 is 4.25%. As of 6/14/2017, 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 4.50% APR to 5.00% APR on an owner-occupied 1-4 family residence. APR includes a 0.50% interest rate discount for maintaining automatic loan payments (ALP) from a Fremont Bank personal checking account3. 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.
We may reduce or suspend your credit limit if any of the conditions that existed at the time your HELOC was opened change significantly, such as the value of your home declines, we reasonably believe you may no longer be able meet the repayment terms, or you default on a material provision of your HELOC agreement.
* Paying the minimum interest only monthly payments will not repay the principal that is outstanding on your line. Your monthly payment may increase, possibly substantially, once your credit line transitions into the repayment period.
1 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. Loans with lower nominal interest rates may be available to borrowers willing to pay points and fees.
2 The $250 Application Fee and $95 Set-Up Charge are waived when you apply between January 3, 2017 - August 31, 2017. You may also be required to pay certain fees to open this credit line. These fees generally total between $0 and $900. The $75 Annual Fee is waived for the first three years. After the third (3rd) year, during the Draw Period, you will be required to pay an Annual Fee of $75 for each year the account is open, whether it is used or not. The Annual Fee will not be refunded in whole or in part and will be owed to the bank once it is posted to your account, even if the account is subsequently changed, frozen, closed or terminated for any reason. For credit lines of $25,000 and higher, 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.
3 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.