Home Equity Line of Credit
Frequently Asked Questions

Do I have to pay an application fee?
There is absolutely no application fee, but you will be required to return your commitment letter with an $18 Flood Determination Fee.

What about an appraisal fee?
If there is not enough equity in your home by using the assessed value, then an appraisal may be needed. The cost for a single-family appraisal is $325. A two-family appraisal costs $525.

Can I borrow the full value of my home?
You can borrow up to 80% of appraised value or 70% of assessed value, less first mortgage balance.

What's the difference between the appraised value and the assessed value of the house?
The "appraised value" is the value of your home as determined by an appraiser. The "assessed value" is the value of your home as determined by the municipal tax department. Usually, the appraised value is higher than the assessed value.

Does this product qualify for the "Easy Does It" bonus deposit interest?
Yes! With this Easy Does It Equity Line of Credit, you can earn a higher rate on one of our Easy Does It Certificates of Deposit. Refer to our other Easy Does It product brochures for information on how to earn even more bonus interest.

What if I don't have a first mortgage?
If there is no first mortgage in place, the equity line is considered a first mortgage. Closing costs apply.

Are there any "hidden" costs I should be aware of?
There are NO closing costs, however, you should be aware that every line comes with an annual fee of $30. Customer should be aware that if other liens are paid off at closing, they will be responsible for any discharge fees.

I own my house in the name of a Trust. What other fees could I incur?
There will be a cost to review the Trust and record said document at the Registry of Deeds. This could increase your cost by as much as $400.

Are there any restrictions on how I use my money?
Absolutely not! There are no restrictions on how your Easy Does It Equity line can be used.

Will I have to drive far or take a day off work for the closing?
Not unless you want to! Our local attorney will be happy to make your closing appointment convenient by conducting evening sessions. Just let us know! All documents will be signed at an attorney's office and typically, there is a three day Right of Rescission period in which no funds are advanced.

What do I need to bring to the closing?
The attorney's office will let you know if there are any items required at closing. Usually, all you need to bring is the insurance binder.

Can I make more than the minimum payment without incurring a penalty?
Of course! Extra principal payments can be made at any time, without penalty. However, if the Line of Credit is paid off and discharged within the first three years, a $400 termination fee will be charged. This fee does not apply to first mortgage liens.

Will I ever have the option of converting my home equity line balance to a fixed rate home equity loan?
Sure! You can apply to convert your equity line to a fixed loan at any time. Depending upon the fixed loan terms, closing costs may be incurred.

Are there any tax advantages to having an equity line of credit?
Yes, indeed! Interest paid on your Easy Does It Equity Line may be tax deductible. Check with your accountant or financial advisor.

* Prime Rate as published in the Wall Street Journal on the first business day of each month. Prime Rate as of 03/01/2010 is 3.25%. Prime Rate may change monthly. Maximum APR is 18%.
**Floor APR is 4.00% all products

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