A home equity line of credit takes the equity in your home and transitions it into financing for several ongoing needs. Once established, you may withdraw from your credit line at any time without applying for another loan. And as revolving credit, as you repay principal, even more becomes available for use.
NMLS ID 786175
30 Year Principal & Interest Home Equity Line of Credit (HELOC): ¹At inception of the loan, a maximum rate or ceiling will be established, referred to in advertisement as FFB Rate Cap Protection. For New HELOCs Only. *APR is the Annual Percentage Rate. Mini-mum line of credit to obtain this rate is $13,000.00 with an 85% or less loan-to-value ratio. A credit score of 680 or higher is required. Other conditions and restrictions may apply and final terms are subject to credit approval under FFB’s underwriting guidelines. This offer is limited to owner-occupied, single family dwellings and is not valid for rental properties, cooperatives, mobile homes (including affixed), second homes, or residential lots. This HELOC will have a draw period of 10 years followed by a repayment period of 20 years, during which no advances can be made, resulting in a total loan term of 30 years. During the draw period the monthly repayment will be based on either 0.75% or 0.90% of the outstanding principal balance, depending on the tier, and during the repay-ment period, the outstanding balance will be fully amortized over the remaining 20-year term, resulting in all HELOCs being paid in full at their maturity. The index is Prime Rate and is published in the Wall Street Journal. To determine the Annual Percentage Rate that will apply to your account, we subtract a margin of either 0.00%, 0.50% or 1.00%, based on the underwriting tier, from the value of the index. There is an interest rate floor of 3.75% that applies to all HELOCs. The interest rate ceiling or maximum interest rate is a fixed rate equal to either the prevailing Prime Rate plus 4.00% or a fixed rate equal to the prevailing Prime Rate plus 2.00%, depending on the HELOC tier associated with an individual loan. Prime Rate is currently 3.25% APR. The annual percentage rate (APR) offered would range from 2.25% to 3.25% APR (Prime – 1.00%, Prime – 0.50%, or Prime) although the interest rate floor of 3.75% is currently the prevailing APR for all of the rate tiers. The APR is a variable rate and is subject to change. The interest rate maximum or ceiling ranges from 5.25% to 7.25% depending on the underwriting tier. Balances during the life of the loan will be calculated at the variable rate as low as 3.75% APR. Your Annual Percentage Rate will never be more than either 5.25% or 7.25% per annum depending on the underwriting tier. Property insurance and flood insurance, if applicable, are required. There is no origination fee charged to open a 30 Year Principal & Interest Home Equity Line of Credit. Other fees may be charged at origination or closing, ranging from $0.00 to $2,500.00. These fees include: appraisal fee, flood certification fee, attorney fee, title policy premium, wire fee, and recording fee. First Federal Bank will pay closing costs up to $750.00 with a minimum disbursement of $10,000.00 at closing. If the HELOC is paid off and closed within 36 months from the Agreement Date, the actual closing costs incurred up to $750.00 originally paid by the Bank will be added into the payoff. Consult your tax advisor regarding interest deductibility. This offer is subject to change at any time and without prior notice. Rates are current as of February 3, 2021.
**Consult a tax advisor.
Payment Example: During the 120-month (10 year) Draw period a customer making a principal and interest payment on an outstanding balance of $15,000.00 would pay either $112.50 or $135.00. The payment of $112.50 is based on 0.75% of the outstand-ing balance of $15,000.00 and the payment of $135.00 is based on 0.90% of the out-standing balance of $15,000.00. During the 240-month (20 year) Repayment period a customer making a principal and interest payment on an outstanding balance of $15,000.00 would pay a payment ranging from $88.93 to $118.60. The payment of $88.93 is based on a 240-month amortization at the lowest possible APR of 3.75% and the payment of $118.60 is based on a 240-month amortization at the highest possible APR of 7.25%.