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Home Equity Frequently Asked Questions
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What is Equity?
How Much can I borrow?
How do I determine how much equity I have
in my home?
What can I use my loan for?
How Long can the term be on my Home Equity
Loan?
Can I build equity faster and pay off my
mortgage with a Home Equity Loan from OnPoint?
What will my interest rate be?
Will my interest rate change?
Can I fix the interest rate on a portion
of my EquityFlex Line of Credit?
Will interest on my Home Equity Loan or
Line of credit be tax deductible?
Is there a pre-payment penalty?
What are the fees
When will I have access to my funds?
How do I access my EquityFlex line of Credit?
Do I have to pay off my Home Equity Loan
or Line if I refinance my first mortgage?
How can I apply?
What is Equity?
Equity is equal to Real Market Value less Amount
Owed on Home. For example:
| Real Market Value of your Home: |
$200,000 |
| Amount Owed on Loan: |
- $160,000 |
| |
------------ |
| Total Equity |
$40,000 |
How much can I borrow?
OnPoint offers both 80% loan to value and
100% loan to value products. Assume the Real Market Value
of your home is $200,000, and you owe $120,000 on your existing
loan. Use the following calculations to determine how much
equity may be available:
100% Loan to Value
$200,000 (Real Market Value of your home) - $120,000 (existing
loan) = $80,000 (Equity)
80% Loan to Value
$200,000 (Real Market Value of home) x 80% = $160,000
$160,000 - $120,000 (existing loan) = $40,000 (Equity)
Our Non-Owner Occupied Equity Loan and EquityFlex Line of Credit allows you to borrow up to 75% Loan to Value.
$200,000 (Real Market Value of Home) x 75% =$150,000
$150,000 - $100,000 (existing loan) = $50,000 (Equity)
Click on Equity
Loan Calculator to figure out how much equity you can
unlock in your home.
How do I determine how much equity
I have in my home?
You can determine how much equity you
have in 3 easy steps:
- Determine the Real Market Value of your home.
A good place to start is reviewing your Property Tax Statement.
- Determine how much you owe on your home. Obtain
a pay off from your current lender.
- Determine how much equity you have. If the Real
Market Value of your home is $200,000 and you owe $160,000
on your home, your equity would be equal to $40,000. The
amount of money available will depend on if you use an 80%
or 100% loan to value product. See how much
can I borrow for more information.
What can I use my loan for?
You can use your OnPoint Home Equity Loan
or Line for remodeling, paying college tuition, a new car
or almost anything you can imagine. Some restrictions may apply on Non-Owner Occupied Home Equity Loans and EquityFlex Lines of Credit.
How long can the term be on my Home
Equity Loan?
The maximum loan term available is 20 years.
Can I build equity faster and pay off
my mortgage with a Home Equity Loan from OnPoint?
Depending on your circumstances, it can
make sense for you to refinance your existing mortgage with
an OnPoint Home Equity Loan. With our fixed-rate, 15-year Home
Equity Loan, you may save thousands of dollars in interest
payments and closing costs and pay off your 30-year mortgage
in half the time. Ask your loan officer for details.
What will my interest rate be?
Your interest rate will vary depending
on the loan you choose. Click on rates
to view current rates.
Will my interest rate change?
Your interest rate will be fixed if you
have a Home Equity Loan or Convertible Home Equity Loan. Your
rate will be variable if you have an EquityFlex Line of Credit.
Can I fix the interest rate on a portion
of my EquityFlex Line of Credit?
You have the option of converting portions
of your line of credit into a fixed rate loan.
Will interest on my Home Equity Loan
or Line of credit be tax deductible?
Interest on your Home Equity Loan or Line
of credit may be tax deductible. Consult your tax advisor
for details.
Is there a pre-payment penalty?
No, there is no pre-payment penalty.
What are the fees?
There is no application fee, and the $25 annual fee for an EquityFlex Line of Credit is waived for the first year. Members must pay closing costs, which generally include title insurance, flood certification and an appraisal. Ask us for details.
When will I have access to my funds?
With the Fast Track Equity Advantage from
OnPoint, you’re as little as a week* away from the cash you need
for home remodeling, paying college tuition, a new car or
almost anything you can imagine. Get a loan decision in minutes
and get your cash in as little as five business days*. To
get this super-fast loan, apply
online, call toll-free (1.877.464.7828)
or stop by any OnPoint branch. To learn about other Home Equity
products click here.
*Funds available in one week
assumes property meets collateral
underwriting criteria.
How do I access my EquityFlex line
of Credit?
OnPoint's EquityFlex Line of Credit allows
you to access funds anytime with Convenience Checks, Telephone
Teller, and Online Banking. You can borrow as often as you
like, up to your approved limit. You apply just once. As you
pay down the balance, the money becomes available again. And
when you want the security of fixed payments, you simply convert
a portion of your line into a fixed rate loan, without reapplying.
Check out our low rates.
Do I have to pay off my Home Equity
Loan or Line if I refinance my first mortgage?
You can keep your Home Equity Loan or
Line even if you refinance your first mortgage. A great benefit
of all OnPoint Home Equity Loans and Lines is OnPoint will subordinate
to another lender. What does that mean? Your first mortgage
and your Home Equity Loan or Line each have what is called
a lien position. Typically a first mortgage loan is in first
position, and a Home Equity Loan or Line is in second position.
When refinancing your first mortgage, many lenders suggest
that you pay off your Home Equity Loan or Line to ensure the
first mortgage will have first lien position. With an OnPoint
Home Equity Loan or Line, you may not have to, and there's
no fee for your loan subordination option.
How can I apply?
OnPoint has made applying for a loan easy. You can get a loan
decision in minutes when you apply online,
call toll-free (1.877.464.7828) or stop by any OnPoint branch.
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