What is Flex Equity?
A flex Equity Line is a type of Home Equity Line of Credit (HELOC), a revolving form of credit that uses your home as collateral that you borrow against and pay it back as many times as needed in the draw period. You can lock in a fixed rate on all or any portion of your variable balance at any time.
- Any portion of the balance that is not converted into a fixed rate option will continue to have a variable rate and minimum payment in addition to the fixed-rate payment.
- You can have up to 4 fixed rate options in place at any time.
How does a Flex Equity line of credit work?
The Flex Equity Line of Credit allows you the flexibility of advancing from your available line but with the ability to create portions to lock the rate up to four at a time. It is essentially a HELOC and Fixed Home Equity in one. All balances have the same payment due date, and you will only owe one payment that covers all portions and lines of credit. The available terms to lock a portion are 60, 120, or 180 months with a minimum of $5,000 to lock. There is no fee for locking in a portion of the Flex Equity Line; lock as often as you would like.
- Portions can be locked in person or via phone.
- The payment amount due includes all portion payments, interest, and late fees.
How do you qualify for a Flex Equity line of credit?
You must apply online, over the phone, or at one of our branches.
How much can I borrow?
You can borrow up to 90% of the equity in your home.
How do you pay back a Flex Equity line of credit?
You will have a minimum monthly payment that includes the payments on all locked portions in addition to the payment on the open end portion. The payment on the open end portion is calculated as a percentage of the balance based on your interest rate. You will make one payment that consists of all locked portions and the line of credit
Is the interest tax deductible?
Please consult with your tax advisor.
Are there any fees to apply for a Flex Equity line of credit?
There are no application fees.
Are there closing costs?
Member is responsible for recordation tax if applicable, amounts vary by location and amount borrowed. $99 origination fee will apply.
What determines the variable interest rate of a Flex Equity line of credit?
The variable interest rate is based on the Wall Street Journal Prime Rate.
What is a draw period?
A draw period is when you can take an advance from your line of credit. From the day it is booked, your line is available for 10 years to take advances from the line. After the 10 year draw period will convert to a repayment only status, it will be in repayment only, and no more advances can be taken. The repayment will be recalculated to pay off the balance over 15 years.
How quickly can I get approved for Flex Equity financing?
Typical loans take 4-6 weeks from application to closing. You can be approved pending things like appraisal and lien search fairly quickly.
How quickly can I close my financing?
What are the terms of a home equity line of credit?
The available terms to lock a segment are 60, 120, or 180 months.