General questions

Home equity line of credit questions

  • What is a home equity line of credit? hides details

    A home equity line of credit is a revolving line of credit secured by your home and is the most flexible type of home financing available. As payments during the draw period are applied to the outstanding principal balance on the credit line, your available credit increases.

  • What is the fixed rate option? shows details

    With the fixed rate option, you can lock in a fixed rate on all or any portion of your variable balance at any time.

    • The fixed rate option allows you to convert all or any portion of your line of credit balance into installment loans with a fixed rate and fixed payments. As you make payments to your installment loan(s) during your draw period, the available credit on the line increases.
    • You can have up to 3 fixed rate options in place at any time.
  • What determines the variable interest rate of a home equity line of credit? shows details

    The variable interest rate is based on the Wall Street Journal Prime Rate as published in the Money Rates section. You can lock in all or any part of your outstanding balance into a fixed interest rate at any time with our fixed rate option. You can have up to 3 fixed rate options in place at any time.

  • Can I change the interest rate on my home equity line of credit from a variable to a fixed rate? shows details

    Yes, during your draw period you can lock any or all of your outstanding balance into a fixed rate option on a line of credit. (For more on this, see "What is the fixed rate option?")

  • What are the terms of a home equity line of credit? shows details

    A Home Equity Line of Credit has 2 different periods, a draw period and repayment period. The draw period is 10 years, where you have ongoing access to available funds and can use the funds how you'd like. During the draw period, you have the option to select a minimum monthly payment of either 1% or 2% of the outstanding balance, or interest only for those who qualify. Once the draw period ends, the account enters the repayment period.

    During the repayment period, you can no longer advance on the home equity line of credit, and must make principal and interest payments. The new minimum payment will ensure the balance is paid in full by the maturity date. The interest rate on the balance continues to be variable.

Home equity loan questions

  • What is a home equity installment loan? hides details

    A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you of a predictable repayment schedule for the life of the loan.

  • What are the terms of a home equity installment loan? shows details

    You can borrow up to $750,000 (up to $1 million for properties in California) depending on the amount of equity in your home. Terms are flexible up to 360 months (30 years). The interest rate is fixed for the term of your loan, and repayments are made in monthly installments of principal and interest.