Are you looking to add a new addition to your home, remodel your kitchen, or need funds for tuition? A Needham Bank Home Equity Line of Credit (NB HELOC) might be the best option for you. Read our Q&A below to learn more about what our product has to offer.
What is a home equity line of credit?
A home equity line of credit, or HELOC, is a revolving credit line that offers you the power to tap into your home’s equity to provide funding for what is most important to you. It’s similar to a credit card, where you can borrow as much as you need, whenever you need it, just without exceeding your credit limit.
Home equity is determined by how much you actually own of your home. This is calculated by taking the current value of your home, minus the principal balance of any outstanding mortgage loans on that property. Typically most banks will allow you to take a HELOC for up to 80% of the equity you have in your home. Additionally, HELOCs require you to use your house as collateral for the loan.
How does a HELOC work?
With a HELOC, you can borrow as much of your available equity as you want during the initial draw period. An NB HELOC allows you to draw on the line for up to 10 years while making interest-only payments.
After the draw period ends, you will begin the repayment phase. This means that you can no longer access additional funds and you have to make regular payments, plus interest, until the balance is gone. With an NB HELOC, you have up to an additional 10 years to repay the funds.
How do you qualify for a home equity line of credit?
In order to qualify for a HELOC you need to have available equity in your home. As mentioned earlier, this means that the amount you owe for your home must be less than the value of it. Many HELOC’s will have a required loan to value percentage to qualify for a loan.
Remember, a good credit score is also always important!
What are the benefits and features of an NB HELOC?
Accessing your funds has never been more convenient as your equity line of credit will be linked directly to an NB Checking account. You will be able to transfer funds easily to your NB Checking account with online banking and make purchases using your NB Debit card.
With our HELOC you will be able to access the power of your home’s equity without paying any fees, so that you can spend your money where it matters instead. You can tap into your home’s equity in order to fund your project and even use it to pay tuition. With an NB HELOC you can consolidate debt by eliminating high-interest debt, so that you have more money to spend doing what is important to you.
Other great benefits include:
- No closing costs*
- No minimum draw
- $25,000 minimum line
- No fees to access
*HELOC’s in the first position or HELOC’s in the second position greater than $250,000 require Lender’s Title Insurance
How do I learn more?
Feel free to contact our Gail Colella, our Consumer Lending Home Equity Specialist, at 781-474-5914 with any questions you may have.
How can I apply?
You can apply online or by calling us at 781-444-2100. Either way, we will help you through every step of the process so you close your line of credit with no surprises, and our lending team will be fully available to you throughout the duration of your loan.
