Fixed Rate Equity Loan
Frequently Asked Questions
How do I determine if I have enough Equity in my home for this loan?
Look at your tax bill and find the total assessed value of your property. Multiply this figure by 70% and then reduce this amount by your first mortgage balance. The remaining figure is the approximate equity. This is subject to the bank validating the value through our own third party appraiser or agent.
Currently I don’t have a 1st mortgage on my home. Can I still get this product?
No, this product is geared for people who already have a present first mortgage.
Will this Equity Loan be secured by a mortgage on my home?
Yes, this Equity Loan will either be secured by a 2nd or 3rd mortgage on your home.
I already have a 1st mortgage with another lender and an Equity Line of Credit with NMSB. Will I be able to get this loan as well?
Yes, as long as you have enough equity in your home and you qualify, we can provide you with this Fixed Rate Equity Loan and secure it with a 3rd mortgage on your home if North Middlesex is the current second lien holder.
I have a 1st mortgage with NMSB and an Equity Line with another Lender. Will I be able to get this loan product?
Yes, but your present equity line with the other lender would have to be paid off.
How much will it cost me to get this loan?
You will only be charged $18 Flood Determination Certificate and a $50 set-up fee. All other costs will be covered by the Bank unless an appraisal is required or a Trust is involved and/or a current mortgage requires a discharge recording fee.
I own my house in the name of a Trust. What other fees could I incur?
In addition to the small fees mentioned above, there will be a cost to review the Trust and record a Trustee Certificate, and any other documentation deemed necessary by the closing attorney, at the Registry of Deeds. This could increase your cost by as much as $400.
If I need to get an appraisal on my property to find the real value, what will that cost?
If there is not enough equity in your home by using a Broker Price Opinion (BPO), then an appraisal may be needed. Also, for all loans over $100,000, an appraisal is required regardless of loan to value. The cost for a single family appraisal is $400. A two-family appraisal costs $550. This is a cost paid by you.
What’s the difference between the appraised value and the BPO value of the house?
The “appraised value” is the value of your home as determined by an appraiser. The “BPO value” is the value of your home as determined by an independent real estate broker. Usually, the appraised value is higher than the BPO value.
Do I have to go to an attorney’s office?
Yes, all documents will be signed at an attorney’s office and typically there is a 3 day Right of Rescission period prior to disbursement of loan proceeds.