The rates and terms described above are for the Convertible Home Equity Line of Credit. Other Home Equity Line of Credit products are available. Ask a WSFS Associate for details. The following property types are not eligible for home equity loans or home equity lines of credit from WSFS Bank: mixed-use properties, life estates, co-ops, timeshares, working farms, commercial properties and land/lots. Primary residences, secondary residences and investment properties are eligible. LTVs may vary from those listed for out-of-market residences and investment properties.
1 During the draw period, the minimum monthly payment for this Convertible HELOC is interest only or $50, whichever is greater. The “interest-only” portion of this Convertible HELOC allows you to pay only the interest on the money you borrow for 10 years (draw period) from the date the line is established. A 20 year repayment period, during which you must pay principal and interest, follows the 10-year draw period. 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 significantly because you must pay back the principal as well as the interest, even if interest rates remain the same.
2 For example, if you took an initial advance of $200,000 from a Convertible HELOC and you took no other credit advances, it would take 30 years to pay off the $200,000 at an Annual Percentage Rate of 8.25%. During the draw period you would make 120 interest-only payments of $1,375.00 (estimated payment). Following the draw period, there will be a repayment period of 239 principal and interest payments and a final balloon payment. The monthly principal and interest payments are based on 1.250% of your outstanding balance. The highest principal and interest payment during the repayment period would be $2,500. The calculated minimum payment will not fully repay the principal that is outstanding on your Credit Line and your final payment will be a single balloon payment of $52,300.11 (estimated payment). Minimum APR of 3.00% will apply. Maximum APR is 18%. Offer subject to credit approvals and may be withdrawn at any time. The entirety of this payment example is based on an assumption that prime rate is 8.50% through draw and repayment periods with a -0.25% margin.
3 Prime rate as of March 02, 2024 is 8.50% and is used to calculate Home Equity Lines of Credit (rates are variable and are subject to change). Minimum Annual Percentage Rate is 3.00%. Maximum Annual Percentage Rate is 18%. Minimum line amount of $25,000 for the Convertible HELOC. Fees to open these lines may range from $0 to $1,365 depending on the amount of the line and the state in which the property is located. Property insurance and, if applicable, flood insurance are required. A recapture fee of $375 will be imposed if your account is closed within 36 months of opening.
4 LTV is 80% for Out-of-Market properties or when the first and second mortgage balance is greater than $750,000. LTV is 70% for investment properties. Investment properties are not eligible for Convertible HELOC.
5 The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. You should consult a tax adviser for further information regarding the deductibility of interest and charges.
Offer subject to credit approvals and may be withdrawn at any time.