Home Equity Line of Credit Special

Introductory Rate HELOC with FFB Checking – For customers who already have or who open at the time of application a First Federal Bank personal checking account, the Bank is offering a Home Equity Line of Credit (HELOC) with an introductory rate of 5.866% APR (Annual Percentage Rate) or a simple note rate of 5.85% for the first 12-months.  For customers who do not have and choose not to open a First Federal Bank personal checking account, the Bank is offering a Home Equity Line of Credit with an introductory rate of 6.508% APR or a simple note rate of 6.49% for the first 12-months.  For the remaining 348 months of the HELOC term, both loans will have a variable rate interest rate with the index being Prime Rate as published in the Wall Street Journal, which means that the interest rate may change.  At the conclusion of the Introductory Rate period, the APR would be 7.521% based on the index rate in effect as of 01/08/2025.  The maximum APR that can apply during the term of the Line of Credit is 16.00% (otherwise known as the ceiling) and the minimum APR that can apply during the term of the Line of Credit is 6.00% (otherwise known as the floor).  The floor does not apply during the 12-month period of the introductory rate.

An Index rate increase will result in an increase in the interest portion of the finance charge and it will increase the periodic Minimum Payment during the 240-month repayment period.  A decrease in the Index rate will have the opposite effect as an increase.  The annual percentage rate can increase or decrease monthly, after remaining fixed for the first 12-months.

During the Draw Period (the first 120 months of the term), a Minimum monthly payment will equal the greater of the following: $50 or 1.50% of the Principal Balance outstanding on the last day of the billing cycle.  During the Repayment Period (the subsequent 240 months of the term), a Minimum Payment will equal an amortized payment of the Loan Account Balance on the last day of the Draw Period (this balance will be amortized over 240 months and the Minimum Payment will change whenever the annual percentage rate changes).

Payment Example: For a Home Equity Line of Credit with a loan amount and outstanding balance of $110,000, the minimum payment due during the draw period would be $1,650, which is derived from 1.50% of the outstanding balance.  Assuming that the outstanding balance was still $110,000 at the conclusion of the Draw Period (first 120-months) and the APR based on the Wall Street Journal Prime Rate was still 7.521%, the first minimum monthly payment of the Repayment Period would be $886.45.  This minimum monthly payment will change whenever the annual percentage rate changes, in order to capture the interest rate increase or decrease, while also maintaining the 240-month fully amortizing repayment schedule.

There is no origination fee charged to open an FFB Home Equity Line of Credit.  Other fees may be charged at origination or closing, ranging from $0 to $2,500.  These fees include: flood certification fee, attorney fee, appraisal/evaluation fee, title policy premium, wire fee, and recording fee.  First Federal Bank will pay up to $750 towards closing costs when the customer takes the minimum draw at closing of $10,000 off of their new HELOC.  If the HELOC is paid off and closed within 36-months from the Agreement Date, the amount of the closing costs originally paid by the Bank must be repaid and will be added into the payoff amount.

This offer is for New HELOCs only and for HELOCs within a range of $14,000 to $350,000.  The maximum Loan to Value ratio is 80%, the maximum Debt to Income ratio is 40% and the minimum credit score is 700.  The maximum 1^st mortgage balance outstanding is $750,000 if that 1^st mortgage is held by First Federal Bank and it is $500,000 if the mortgage is held by another lender.   Other conditions and restrictions may apply and the offer of a HELOC is subject to credit approval under First Federal Bank’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), or residential lots.  Consult your tax advisor regarding interest deductibility.  This offer is subject to change at any time.

*Consult a Tax Advisor.