1 All loans are subject to credit review and approval. The advertised APR is variable and subject to change without notice. 2.99% APR is an introductory fixed rate for the first 12 months, for qualified Home Equity Line of Credit (“HELOC”) borrowers. After the introductory period, the fully indexed rate may be a variable APR of 3.25% plus a margin that ranges from 0% to 4.25% which varies depending on individual credit qualifications, credit limit amount, loan to value ratio and other criteria that may apply. The variable APR is based on the Prime Rate (as published in the Wall Street Journal), which as of 03/24/2020, is at 3.25%. Therefore, depending on the date you apply, the advertised rate(s) may not be available. If the Prime Rate increases or decreases after the Introductory Period, the variable APR and minimum required payment will change accordingly. The maximum term of a HELOC is 30 years which consists of a 10-year draw period followed by a 20-year repayment period.
The introductory fixed rate is for a maximum Combined Loan-To-Value (CLTV) ratio of 80%, with a maximum loan amount of $1,000,000. After the introductory fixed rate expires, the fully indexed rate may include a 0.25% discounted rate for automatic payments from an Affinity account. The rate without automatic payments will be higher. The standard minimum APR (floor rate) is 3.00% and the maximum APR (ceiling rate) assessed by Affinity cannot increase by more than 6% above the initial fully indexed rate (NOT based on the introductory interest rate). Offered rates are subject to change without notice. The interest rate you qualify for is based on our review of your creditworthiness, the available equity in your home, and is contingent upon you granting Affinity a valid first or second mortgage. If the HELOC is less than $250,000, there are no upfront fees. If the HELOC is $250,000 or higher, the borrower will be required to pay for a full title insurance policy. For all HELOCs where state mortgage tax or other state fees are charged borrower will be responsible to pay this at closing and may take as an advance from the HELOC. If borrower pays off and closes the line within the first 36 months, they will be required to repay the third party fees, which may range between $250.00 and $5,000.00, paid by Affinity.
Home equity lines of credit are available in all states except Texas. Certain states may require a closing attorney. State specific fees may apply at closing. Homeowners’ insurance is required. Flood Insurance is required where necessary. Title Insurance may be required based on loan amount. Eligible properties include owner-occupied, 1-4 family residences, warrantable condominiums and townhomes. Investment properties, second homes, vacation homes, cooperatives, mobile homes, and purchase money transactions are excluded.
2 Your Home Equity Line of Credit (HELOC) agreement contains a fixed rate option in you may elect to "lock in" all or a portion of your variable-rate limit or outstanding balance to a fixed Annual Percentage Rate over a set term for up to 3 advances within your available credit line, during the draw period only, with a maximum repayment term of 10 years. When you choose this option, the interest rate you receive for that advance will be fixed until the balance is repaid. Depending on the rate and term chosen, there are minimum advance restrictions. Your fixed interest rate (which does not include costs other than interest) will be determined by the Credit Union at the time you exercise this option. Your interest rate will be provided by a loan servicing representative and is determined based on the term selected and/or your fully indexed rate. If the lock in is during the introductory period, the interest rate will NOT be determined based on the introductory rate.
