Home Equity Line of Credit (HELOC)
Current variable rate as low as 3.99% APR1
Your home has your back when you need it.
Want the flexibility to borrow on an as-needed basis, such as for tuition payments or emergency money in a pinch? A home equity line of credit (HELOC) may be just what you need. A HELOC is a line of credit secured by your home that allows you to borrow on the go, up to a determined dollar amount. If you’re ready to tap into the equity you’ve built up in your home to cover upcoming costs, our bankers can help you get there. Come in to your local branch to learn more about home equity line of credit rates, financing plans, and more.
FEATURES YOU'LL LOVE:
- Variable interest rate based on Wall Street Journal prime rate
- No bank-imposed costs as long as HELOC remalns open for 36 months
- 10-year draw period, 20-year repayment period
- Line amounts of $10,000 to $500,000
- Multiple draw methods
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1Flagstar Home Equity Line of Credit (HELOC) is a variable rate, revolving line of credit secured by residential property only, specifically, 1-4-unit owner-occupied homes, and modular homes. The annual percentage rate (APR) is based on the Wall Street Journal prime rate (index) as of March 17, 2020, plus a margin for HELOC amounts between $10,000 and $500,000 with a combined loan-to-value (CLTV) ratio of 80% or lower. Effective June 1, 2020, the current variable APR will range from 3.99% to 21.00%. It will not exceed 21.00% APR. APR reflects a .50% interest rate discount that is available for HELOCs with monthly automatic payments (ACH) established and elected at the time of application to be paid from a borrower’s Flagstar Bank Deposit Account. Actual APR will be based on the variable rate index value in effect at the time of account opening, plus a margin determined by the borrower's credit qualifications, the amount of the line of credit, lien position, CLTV ratio, type of property, and other factors. APR remains variable for the life of the loan. Annual fee is $75 per year and is waived the first year. The HELOC must remain open for at least 36 months to avoid payment of closing fees, including, but not limited to, title, appraisal, notary, and recording fees. Borrower is responsible for paying required government taxes and fees at closing. During the 10-year draw period, for the (a) interest-only payment terms, the minimum payment for each billing cycle will equal the greater of $100 or the finance charges that have accrued for that billing cycle or for the (b) principal and interest payment terms, the minimum payment for each billing cycle will equal the greater of $100 or the amount sufficient to repay the account balance in full by the maturity date in substantially equal payments plus the finance charges that accrued for that billing cycle, and other fees, charges and costs. If the repayment period extends to 20 years, the minimum payment for each billing cycle will equal the greater of $100 or the amount sufficient to repay the account balance in full by the maturity date in substantially equal payments plus the finance charges that accrued for that billing cycle and other fees, charges, and costs. The borrower is responsible for separate payments of property taxes and insurance. Property insurance is required; if the collateral is determined to be in an area having special flood hazards, flood insurance will be required as well. The borrower must have verifiable income. Offer may be withdrawn without notice. Rates apply to new HELOC accounts and may not apply to existing HELOC accounts. Offer not valid in TX. For qualified borrowers. Subject to credit approval, underwriting approval, and lender terms and conditions. Programs subject to change without notice. Some restrictions may apply. Not a commitment to lend. HELOCs are only offered through a Retail Banking Branch or in conjunction with a first mortgage purchase or refinance transaction.
CONSIDERATIONS: Fees and charges may vary by product and state. Please consult your tax advisor regarding the deductibility of interest. Consolidating or refinancing debt may increase time and/or the finance charges/total loan amount required to repay the debt. Important information will be provided to you in the disclosures you receive after we have received your application and the loan documents you are provided at loan closing.