Home Equity Lines of Credit allow you to use the equity in your home to finance remodeling and home improvements as well as major purchases and unexpected expenses. The interest you pay on a Home Equity Line of Credit may be tax deductible, so consult your tax advisor.
|Easy Does It Equity Line at a Glance|
|Maturity Date||15 years|
|Draw Period||10 years followed by a 5 year repayment period|
|Variable Rate Programs||Home Equity Prime Minus One Half:
Annual Percentage Rate (APR) is a variable rate equal to 1/2% below Prime Rate* for the life of the loan; current APR is 3.50%. Prime Rate is currently 4.00% and is subject to change. Minimum initial advance of $10,000 is required. Automatic payment from an NMSB account is required. Monthly payment per $1,000 is $7.92.
Home Equity Prime Line:
APR is a variable rate equal to the Prime Rate* for the life of the loan. Current APR is 4.00%. Prime Rate is currently 4.00% and is subject to change. Monthly payment per $1,000 is $8.33.
|Minimum Payment||Monthly interest plus .5% of the outstanding balance or $50.00, whichever is higher.|
|Interest Only||Home Equity Interest Only:
Annual Percentage Rate (APR) is a variable rate equal to ½% below Prime Rate* for the life of the loan; current APR is 3.50%. Prime rate is currently 4.00% and is subject to change. Minimum initial advance of $10,000 is required. Automatic payment from an NMSB account is required. Monthly payment per $1,000 is $2.92.
|Loan to Value Ratios||80% of appraised value of home (cost of appraisal is $400, if needed) or 70% of BPO (Broker Price Opinion), less amount of 1st mortgage. Existing appraisals not older than 6 months may be considered. Primary Residence and Second Homes Only- Single or 2-family properties. Property Insurance is required.|
|Loan Limits||$15,000 - $250,000 using appraised value (Appraisal required for liens over $100,000)
$15,000 - $100,000 using Broker Price Opinion (BPO)
|Turn Around Time||Approximately 2-3 weeks|
1) If HELOC is a second lien: no closing costs apply (except if an appraisal is required).
2) If a first lien: closing costs will range anywhere from $1,625 to $2,200.
Also a $30 yearly Maintenance fee applies to all liens.
|Lending Area||Massachusetts and Southern NH (Towns adjacent to Massachusetts)|
|Pre-payment Fee||Equity Line must remain open for three years. If the Equity Line is discharged during the first three year period, a termination fee of $400.00 will be charged. This penalty does not apply to first lien mortgages.|
*Prime rate as published in the Wall Street Journal on the first business day of the month. Prime Rate as of 3-16-2017 is 4.00%. Rate may change monthly. Maximum APR: 18.00%. Owner occupied properties. Primary residence only. Subject to credit approval.