Home equity loans allow you to borrow against the equity in your home. Because your home is such a valuable asset, you can often qualify more easily for a home equity loan and benefit from a lower interest rate than financing with a personal loan or a credit card.
There are two options of home equity loans:
- Home Equity Loan (HE): also referred to as a second mortgage, is a fixed term loan, where you borrow cash up front and pay it back on a regular schedule with a fixed interest rate, much like a standard fixed mortgage.
- Home Equity Line of Credit (HELOC): allows you to borrow up to a certain limit, which you access when needed, giving you more flexibility. If you end up needing less money than expected, you can borrow less and only pay interest on that lesser amount rather than the full amount you qualified for.
How much can I borrow?
How much you can borrow depends on factors such as how much equity you have, how much other debt you have, your income and employment situation, and your credit rating. Call us at 978.452.1300 or visit any Lowell Five branch to speak with an advisor today. Our experienced mortgage lending team is here to advise and guide you for the best financing option for your situation.
You can also start an application anytime day or night with our easy online application and a Lowell Five advisor will contact you at your requested time.
Click on the link to our mortgage center resource for a glossary of mortgage-related terms, information on rates and fees, and financial calculators to assist you with your planning.
Home Equity Solutions
All Lowell Five solutions come with a supportive relationship with our team of mortgage experts.
|Account Name||HOME EQUITY LOAN||PREMIER EQUITY LINE OF CREDIT||HOME EQUITY LINE OF CREDIT|
|Fixed or Variable Rate||Fixed||Variable, can be converted to fixed||Variable|
|How do I get my funds?||Full loan amount provided at closing||Withdraw funds as needed during the draw period||Withdraw funds as needed during the draw period|
|Benefits|| • Fixed rate and fixed term means predictable repayment schedule |
• No early repayment penalty
| • Only pay interest on amount borrowed.|
• Can draw additional amounts during variable term draw period
| • Only pay interest on amount borrowed|
• Can draw additional amounts during draw period
• No early repayment penalty
|Combined Loan to Value (LTV)||80%||Up to 89.9%||80%|
|Draw Period (pay only the interest and withdraw additional amounts)||n/a||5, 10, 15 or 20 years||10 years|
|Repayment Period (pay principal and interest)||5, 10, or 15 years||10 years||10 years|
|Loan ranges||$10,000 to $200,000 on primary residence||$25,000 up to $1,000,000 on primary residence, $500,000 on owner-occupied vacation home||$10,000 to $500,000 on primary residence|
|Lien Position||Junior||First, Junior||First, Junior|
Home Equity Loan Rates
|Term||APR||Payment per $1,000|
Rates shown are with automatic payment from your Lowell Five deposit account. All APRs are subject to change at any time without prior notice.
Equity Line of Credit and Premier Equity Line of Credit Rates
|Equity Line of Credit|
|120 month draw period followed by 120 month repayment period.||Prime Rate*, Variable|
|Premier Equity Line of Credit|
|Choice of 60, 120, 180 or 240 month draw period followed by 120 month repayment period||3.24% for 6 months. Prime Rate* minus 0.25%, Variable for the life of the loan|
LTV is determined as (1st Mortgage + Equity Loan)/Property Value. $210.00 Recording Fee Applies. $85.00 Automated Valuation Model Fee Applies.
Higher APRs apply unless payment is automatically deducted from your Lowell Five Deposit Account. All APRs subject to change at any time without prior notice.
*Variable rates calculated monthly tied to the Wall St. Journal Prime Rate, currently Prime is 4.75%.
Payments of interest only for the draw period, then payments of principal and interest for the 120 month repayment period. $25.00 inactivity fee will apply if account is not used during any twelve month period. Maximum APR is 18%. Minimum APR is 3%. Property insurance and Flood Insurance (if applicable) is required.
Premier Equity Line of Credit requires automatic payments from your Lowell Five Checking Account with Electronic Statements. Must maintain the minimum balance of $25,000 for the first six months. Early termination fee of $350.00 if the Line of Credit is closed within the first 24 months.
How do I calculate my equity?
Your equity is the difference between what your home is worth and how much you owe on your home. For example, if your home is worth $400,000 and you owe $250,000, your equity is $150,000.