1. APR = Annual Percentage Rate. All Home Equity Lines of Credit (HELOCs) are subject to credit review and approval. The advertised APR is variable and subject to change without notice and is based on a maximum Combined Loan-To-Value (CLTV) ratio of 75%, with a maximum loan amount of $1,000,000. The fully indexed rate may be a variable APR as low as 4.75%, plus a margin that ranges from 0% to 2.75%, which varies depending on individual credit qualifications, credit limit amount, loan to value ratio and other criteria that may apply. The fully indexed rate includes a 0.25% discounted rate for automatic payments from an Affinity account. The rate without automatic payments will be higher. The variable APR is based on the Prime Rate (as published in the Wall Street Journal), which as of 6/16/2022, is at 4.75%. Therefore, depending on the date you apply, the advertised rate(s) may not be available. If the Prime Rate increases or decreases, the variable APR and minimum required payment will change accordingly. 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. Offered rates are subject to change without notice. The maximum term of a HELOC is 30 years which consists of a 10-year draw period followed by a 20-year repayment period.
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. Lender’s 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 wherein 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 your fully indexed rate.
3. If the HELOC is less than $400,000, there are no upfront fees. If the HELOC is $400,000 or higher, the borrower will be required to pay for a full lender’s title insurance policy. For all HELOCs where state mortgage tax or other state fees are charged, the borrower will be responsible to pay this at closing and may take as an advance from the HELOC. There are no prepayment penalties, however, if borrower pays off and closes the line within the first 36 months, the borrower will be required to repay the third-party fees paid by Affinity, which may range between $250.00 and $5,000.00. Please contact a Loan Officer for additional details on additional prepayment options.
