HELOC Fixed Rate Option
With no closing costs and rate lock options, there’s no better time to apply for a line of credit!
A HELOC is a line of credit secured by the equity in your home. You can use all or a portion of your approved credit line at any time during the ‘draw period’ of your HELOC, typically 10 years, and you make monthly interest only payments based on the amount you’re borrowing. Similar to a credit card, once you repay what you’ve borrowed, you can use that available credit again whenever you need it.
A HELOC is a great way to gain flexibility in the way you borrow and repay money, and because the loan is secured by your home, your interest rate may be lower than other unsecured credit options like credit cards.
People often use HELOCs to pay down higher-interest rate loans, or to finance home-improvement projects that may increase the value of your home, but you can use the money for anything you like, whenever you need it.
What is a HELOC Fixed Rate Option?
Normally, when you borrow from your credit line, you pay a variable interest rate and make interest only payments on the amount you borrow. The rate is subject to changes in the Wall Street Journal Prime Rate, so it can fluctuate. You may make principal payments at your discretion.
If you would like to have more structure to pay down the amount borrowed with a fixed rate and term, then the Fixed Rate Option is a great feature to use. For a $50 fee, you can lock a rate and term on all or a part of the amount you borrow. You may have up to 5 different locks on your line of credit at any given time. You can lock or unlock a portion of your borrowings at any time. This gives you convenience, choice and control over they way you borrow funds. Now that’s smart borrowing!
Choose if and when to lock in a fixed rate, and switch back to a variable rate if you like. When locking in your rate, you choose the loan amount and term.
Here are a few things you can do with this line of credit:
A. You can unlock this rate for a $50 fee to lock in a new lower interest rate if available. You can also unlock and leave it at a variable rate.
B. You can unlock this rate for a $50 fee to consolidate with A (if unlocked) and lock in a lower interest rate if available. You can also unlock and leave it at a variable rate.
C. You can lock in a fixed rate for a $50 fee. You can also consolidate it with any other unlocked loan to be locked at one interest rate.
D. You can buy anything with this amount. Once funds are spent then you have options to leave it as variable or lock it in to a fixed rate. Or you can consolidate it with other parts of your HELOC that are unlocked.
Control your monthly payment with flexible repayment options, including interest-only payments on your variable-rate balances, and terms up to 10 years on fixed-rate loans.
Sample Line of Credit using Fixed Rate Options:
A. Fixed-Rate loan 10 yr. term: $15,000
B. Fixed-Rate loan 5 yr. term: $8,500
C. Variable rate balance: $6,500
D. Available for use: $10,000
You choose how to access funds from your Home Equity Line of Credit:
- Equity Access Card: Access funds using your Equity Access debit MasterCard. Use your Equity Access Card anywhere MasterCard is accepted, up to $5,000 per day.
- By Check: Write a check drawn on your HELOC.
- Online/Mobile: Just ask us to add your HELOC to your online banking account, then log in and transfer money from your HELOC directly into another account.
- Telephone Banking: Call our telephone banking line to transfer funds from your HELOC into another account
- By Phone/In Person: Call or visit the bank to request that available funds be transferred into your checking or savings account, or request a bank check.
Your available credit automatically increases as you pay back your loans.
- No Closing Costs
- Fixed rate options allow you to lock in consistent payment amounts if interest rates increase (fees apply).
- Use your credit line all at once or in increments, right away or at a later date.
- Available line is based upon a percentage of your LTV (loan-to-value) for qualified borrowers.
- Interest may be tax deductible (consult your tax adviser).
- Save Money ... Competitive Rates
- Peace of Mind/Security ... Secured By The Equity In Your Home
- Monthly Payments Are Based Upon Your Usage
- Flexibility ... Available All At Once or In Increments, Right Away or At A Later Date
- Convenience ... May Access via A Debit Card
How do I sign up?
Contact First Merchants to schedule an appointment to begin the process.
Payment Amount: Interest only with $100 minimum payment. Term: 10 year draw period maximum Interest Rate: Interest rates will be based on Wall Street Prime with Regional pricing. Minimum Interest Rate: 3.25% Maximum Interest Rate: 25% Cycle Date: Due date will be 20 days after the cycle date. Late Charge Amount: $18.00 or state law allowed. Assessed 10 days after due date. Annual Fee: $75.00 will be charged annually; being charged on the 1st anniversary date Credit Card: Yes. Card will be offered with each closed loan Overdraft Protection: Yes, can be used to prevent checking account overdrafts. Minimum Loan Amount: $5,000 Loan To Value: The maximum LTV is 89.9% on the 2nd lien position loan. If the lien position is a 1st lien, the maximum LTV can not exceed 80% due to the fact that PMI (Private Mortgage Insurance) is required.Closing Costs: None (bank pays closing costs). Rate Lock Feature: A 5 year fixed rate lock option is available on Home Equity Lines of Credit. A customer may have more than one lock. A $50 fee applies to lock/unlock the rate. Note: If the lock term exceeds the line of credit maturity date the remaining locked balance will be balloon at maturity. Additional disclosures/paperwork needed to place on existing or new lines. Terms are subject to change. Property insurance required.