Equity Advantage

Home Equity Loan – Fixed Rate

The Equity Advantage Home Equity Loan is a fixed rate loan that allows homeowners to borrow money by leveraging the equity in their home. This is a great loan option to help cover the cost of a single, large purchase, such a new roof on your home or an unexpected medical bill. Plus, a home equity loan can serve as a potential tax deduction1 from the paid interest.

How Do I Calculate My Monthly Payment?

Rates are based on your credit and what lien position the loan will be in at the time the loan is taken (first or second). The payment depends on if the loan is in 1st lien position or 2nd lien position.

1st Lien Example: If $10,000 equity was borrowed for 5 years at the fixed rate of 3.49%, the approximate monthly payment would be $182.41
2nd Lien Example: If $10,000 equity was borrowed for 5 years at the fixed rate of 3.49%, the approximate monthly payment would be $115.49

How Do I Calculate The Equity In My Home?

In order to calculate how much equity is in your home, take up to 90%2 of the value of your primary residence (or up to 80%3 of your secondary residence) and subtract the amount you owe on your mortgage. The result is the maximum amount you may be able to finance.

Primary Residence Example with 70% Loan-To-Value Adjustment Secondary Residence Example with 60% Loan-To-Value Adjustment
(0.70 x $200,000) – $125,000 = $15,000 (0.60 x $150,000) – $80,000= $10,000
$200,000 represents the residence value; $125,000 represents the remaining balance on the mortgage $150,000 represents the residence value; $80,000 represents the remaining balance on the mortgage

1 Contact a tax advisor for more information.

2 Percentage may change or be adjusted to accommodate market conditions

3 If the secondary residence is a rental or investment property, the maximum credit limit is $50,000

Flood and /or property hazard insurance may be required.