Interest Only Home Equity Lines
With our Home Equity Line of Credit, have the freedom to access the money you need. Access your line by simply writing a check.
- Interest may be tax deductible (consult your tax advisor).
- You pay interest only on the money you use.
- Minimum monthly payment is equal to interest only based on the lines outstanding balance or $50—whichever is greater.
- Fixed-rate option is also available.
Fees to open the line may range from $0 to $720. Fees also depend on the amount of the line and the state in which the property is located. A recapture fee of $375 will be imposed if your account is closed within 36 months of opening.
The "interest only" portion of this Convertible HELOC allows you to pay only the interest on the money you borrow for ten years (Draw Period) from the date it is established. Interest only payments do not build home equity. If you pay only the amount of interest that is due, once the interest-only period ends, you will still owe the original amount that you borrowed and your monthly payment will increase because you must pay back the principal as well as the interest - even if the interest rates remain the same.