Home Equity Line of Credit
Have access to funds at the moment you need it
Buying a home or using the equity in your home for large expenses can be complex. Our experts break down the latest housing trends and tips so you can make the best choices for you and your needs.
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Your highest priorities? Achieve them with a HELOC
If you're looking for some help handling life's large expenses, such as a home improvement project for your house in Illinois, Wisconsin, or elsewhere, car repairs or college costs, a First American Bank Home Equity Line of Credit can be the perfect solution. After our easy application process, you can borrow money over and over again, and for any reason.
- Low monthly payments
- No application fees
- Up to $2,500 closing cost credit*
- Pay interest-only on amount borrowed1
- Competitive HELOC interest rates help you get the most for your money
- Use the equity in your home for major home improvements, college expenses or to pay off high-interest debt
| Product | Rate | APR |
|---|---|---|
Home Equity Line of Credit Terms and Conditions | 7.500% | 7.500% |
Not available for investment properties or properties located in Texas, New York, Alaska, or Hawaii- The Annual Percentage Rate (APR) is a variable rate based on the highest Prime Rate published in the Money Rates section of The Wall Street Journal on the first business day of the month. Rates subject to change at any time. The maximum APR is 18%. 1Monthly payments of interest only will result in a balloon payment. No annual fee for the first year - $75 annual fee thereafter. Costs to satisfy certain prior liens may be assessed. Property insurance is required. Flood hazard insurance may be required. An Early Cancellation Fee of 2.00% of the credit limit, or $500, whichever is less, will apply if the loan is closed within the first 36 months. An Early Cancellation Fee is not applicable when prohibited by state law. Offer is subject to normal credit qualifications.
*UP TO $2,500 IN CLOSING COST CREDIT: Third party fees and charges ranging from $500 to $3,100 may be assessed for HELOCs under $250,000 at closing. If at the time of closing you set up an Automatic Funds Transfer (AFT) or Automatic Clearing House (ACH) to make the monthly payment on your HELOC and within the first statement cycle elect electronic statements, we will pay up to $2,500 of the Third Party Fees and Charges associated with closing on your HELOC, including, but not limited to, appraisal, title, flood, credit report, stamp & tax, and recording fees (Third Party Fees and Charges). If at any time during the term of your HELOC you fail to maintain the AFT or ACH or an electronic statement, you agree to repay the Third Party Fees and Charges that we previously paid which may be added to the outstanding balance of your HELOC. If at the time of closing you do not set up an AFT or ACH to make the monthly payment on your HELOC, then you agree to pay the Third Party Fees and Charges at closing. Not available for loans that fall outside our standard product, rate, term and underwriting guidelines.
Payment: Your Regular Payment will equal the amount of your accrued Finance Charges. Term: The draw period will extend to the first day of the month following execution of the loan documents plus ten (10) years.
Balance Due at End of Loan Term: Closing Fees: $612.00
Annual Fee: $75.00
[Office setting. Kelly Brizzolara is sitting behind her desk, with a couple, Matt and Gaby, sitting across from her.]
Kelly Brizzolara: I'm Kelly Brizzolara, a loan officer here at First American Bank. Today we're going to talk about the difference between a Home Equity Line of Credit and a Fixed Rate Home Equity Loan. A lot of people have a hard time understanding the difference because they're very similar and both use your home as collateral. Here's an example of how they differ. Let's take a look at Gaby and Matthew's situation.
Gaby: We are looking to remodel our kitchen and think we need a loan to get it done. But we're not quite sure what loan to go with. We've heard about fixed rate home equity loans and home equity lines of credit. What's the difference?
Kelly: Well, a fixed rate Home Equity Loan is a loan where you borrow a fixed amount from First American Bank at a fixed rate and make equal payments for the term of the loan.
[On screen text: Home Equity Loan = fixed rate, fixed term and fixed payments]
Kelly: When the term is over, if all payments have been made, the loan is paid off. Because it has a fixed interest rate, you won't have to worry about rate adjustments. A home equity line of credit, or HELOC, is a loan where we will work with you to determine a credit limit and you will then have access to use this credit as you see fit. Home equity lines of credit have variable rates, which means that the rate may change when the prime rate changes.
[On screen text: HELOC = variable rate based on prime.]
Kelly: You can borrow up to the limit of your line of credit, just enough to finish a project around the house or pay an unexpected bill. You can continue to borrow using the available line of credit throughout the life of the loan and pay interest only on the outstanding monthly balance. You can also choose to pay down the principal balance of the line of credit anytime and restore the balance available for you. At the end of the term, if you still have a balance, you must pay it in full or refinance.
Kelly: For a large project like the remodel of a kitchen where you know how much you need and you want to budget a fixed payment; you might consider a fixed-rate home equity loan.
Matt: We were also thinking about getting new appliances for the kitchen and not doing a big remodel. Would a fixed-rate home equity loan work for us too?
Kelly: Yes, but in that case if you are only doing a small job, you might consider a HELOC. A HELOC is a good loan for people who want flexibility, and you can draw on it anytime you need money.
[On screen text: HELOCs provide flexibility.]
Kelly: It's a perfect loan for unexpected financial emergencies, college tuition, a new car, or your new kitchen appliances. That credit limit is available to you for the entire term of the loan, so if you pay off your appliances and need more money later, you can simply use the home equity line of credit again.
Gaby: We're not sure how much we need to borrow. How are loan amounts determined?
Kelly: With any home loan, the amount you can borrow is based on several factors. Our underwriters evaluate your past credit history, the amount of income you earn in relation to how much you want to borrow, as well as the value of your home.
[On screen text: First step: Meet with a First American banker]
Kelly: Sitting with me today is the best first step, as we can determine how much you need to borrow and begin the loan application process.
Matt: So, which home equity product is the right one for us?
Kelly: I'd say in your case, a home equity line of credit might be a better fit for your projects. A new kitchen and new appliances and you're really cookin'!
Gaby: Thank you, First American Bank!
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