City National Bank's Home Equity Line of Credit (HELOC) gives you the ability to use the equity in your home to secure a reusable source of cash that you can use for numerous situations. With this product we can loan, in a combined loan amount (using your first mortgage and the HELOC) of up to 95 percent of the value of your home. With this product we set up a line of credit that you can borrow against and repay as quickly as you would like. An added benefit to the HELOC is that interest paid on your HELOC may be tax deductible depending on your situation (please consult your tax advisor).
TERM - This loan is usually set with a 10 year maturity and requires monthly payments of 1.0 percent of the loan account balance. A balloon payment may result.
INTEREST RATE - The interest rate is variable quarterly (minimum of 5 percent with a maximum of 21 percent) and is based on the following chart:
LOAN TO VALUE* ANNUAL PERCENTAGE RATE**
< 50 percent 0.25 percent
50-70 percent 0.75 percent
70-80 percent 1.00 percent
80-95 percent 2.00 percent
*Total of 1st Mortgage & HELOC, divided by home value
**Above New York Prime Rate
MINIMUM COMMITMENT - A minimum commitment of $5,000 is required, however, no initial advance is required.
COST - Please see one of our loan specialists for a cost estimate. The fees to open the account are approximately $200-$500. There is also a $15 annual fee.
Home Equity Lines can be used for:
- Making home improvements
- Consolidating debt
- Purchase of new or used automobiles
- Purchase of recreational vehicles
- Vacation expenses
- College expenses
- Medical expenses
- Business expenses
- Paying taxes
Apply in person today and visit with one of our experienced loan professionals.