A Home Equity Line of Credit (HELOC) is an open end revolving line secured by a mortgage on your personal residence (does not have to be your principal residence). Once established, you can draw on the line as needed for amounts up to the established maximum limit.

 

Your line of credit will have a maximum term of ten years and require monthly payments. Because the HELOC is a revolving product, you can borrow your funds throughout the ten-year period much like you would on a credit card. At the end of the ten-year period the remaining balance and accrued interest become due.

 

If your home is located in Minnesota, you will be required to pay the Minnesota Mortgage Registration Tax of 2.30/$1000. If the tax statement, or a previous appraisal done in the last year, does not show a realistic value for the home, then an outside appraisal may be needed, and this would be your expense. All other closing costs are paid by our bank.

 

We have three different rate plans based on the margin over prime. The rate is variable and will change as the New York daily prime changes. A margin over prime will be established at the time we receive your loan application. The margin is based on your credit scores, loan-to-value (the amount of your mortgage loans compared to the value of your home), and your debt ratio (monthly expenses compared to monthly income). There is also a minimum interest rate, floor, established for this product.

 

The minimum loan amount for a HELOC is $5,000. The maximum amount will be determined by the equity you have in your home.

 

If you have determined that you would like to apply for a HELOC, call or stop in to any of our locations and request a HELOC application. The completed application should be delivered along with the following copies:

 

            Real estate tax statement

            Current pay stubs

            Most current W-2’s

            Information on any existing mortgage(location, balance, monthly  payment)