We offer four (4) Home Equity Line of Credit Plans that differ based on the loan-to-value ratio (LTV) and our underwriting criteria: (1) 75% & Less LTV (5.00% Minimum Rate); (2) 75% & Less LTV (7.00% Minimum Rate); (3) Greater than 75% LTV (5.00% Minimum Rate); and (4) Greater than 75% LTV (8.00% Minimum Rate). Not all applicants may qualify for all Plans. Membership required.
Minimum Payment Requirements
The Minimum Payment Requirements for all Plans are the same. You can obtain credit advances for 60 months (the draw period). During the draw period, payments will be established at the close of each billing cycle at an amount equal to 2.00% of your then unpaid principal balance, subject to the lesser of $100.00 or your account balance. After the draw period ends, you will no longer be able to obtain credit advances and you must repay the outstanding balance (the repayment period). The length of the repayment period will depend on the date and amount of your last advance. During the repayment period, your minimum monthly payment will be calculated in the same manner as the draw period. Paying only the minimum payment may not be sufficient to fully amortize your unpaid account balance by the end of the Agreement Maturity Date in which case, you will be required to continue making your regularly scheduled payments until such time as you have repaid the entire amount owed under your agreement with us.
Minimum Payment Example
75.00% & Less Loan-To-Value (5.00% Minimum Rate) If you made only the minimum payments and took no other credit advances, it would take 100 months to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 5.00%. During that period, you would make 60 monthly payments varying between $200.00 and $100.00, followed by 39 monthly payments of $100.00, and a final payment of $61.46.
Your account contains a Variable Rate feature and, as a result, the Annual Percentage Rate (corresponding to the periodic rate) and the number of your scheduled payments can change as a result. The Annual Percentage Rate includes only interest and no other costs. The Annual Percentage Rate is based on the value of an index. The index is the highest Prime Rate as published in the Money Rates Section of The Wall Street Journal in effect on the 3rd Monday of each calendar month, rounded to the nearest 0.125%. Changes in the Index will cause changes in the interest rate on the first day of the billing cycle that immediately follows any change in the index. To determine the Annual Percentage Rate that will apply to your line of credit, we add a margin to the value of the index. Ask us for the current index value, margin and Annual Percentage Rate. After you open a line of credit, rate information will be provided in periodic statements that we send you.
Your Annual Percentage Rate can change monthly. There is no limit on the amount by which the interest rate can change during any one-year period other than the maximum Annual Percentage Rate that can apply at any time to this account. The maximum ANNUAL PERCENTAGE RATE at any time is 18.00%.
Maximum Rate And Payment Examples
The following examples apply to all Plans. If you had an outstanding balance of $10,000.00 during the draw period, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18.00% would be $200.00. This Annual Percentage Rate could be reached during the 1st month of the draw period. If you had an outstanding balance of $10,000.00 during the repayment period, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18.00% would be $200.00. This Annual Percentage Rate could be reached during the 1st month of the repayment period.
Fees And Charges
To open a line of credit, you will have to pay certain fees to third parties. These fees generally range from $600.00 to $1,200.00. If you ask, we will give you an itemization of the fees you will have to pay to third parties.
You must carry insurance on the property that secures this plan. Minimum Draw Requirements The minimum credit advance you can receive is $250.00.