Home Equity Line of Credit

• With a 1-month ARM, the initial rate is in effect for one month. After the first month the annual percentage rate is based on the value of an index, plus a margin. The annual percentage rate may vary. There is no minimum rate and the maximum rate is 18%.
• With a 3-1 ARM, the initial rate is fixed and good for three years. After three years the annual percentage rate is based on an index plus a margin and may vary monthly. There is no minimum rate and the maximum rate is 18%.

The minimum monthly payment is the accrued interest only or $30, whichever is greater, for five years. This five-year period is called the draw period. During the draw period, you may keep the credit line open even if it has a zero balance. The loan is then converted to a 15-year amortized loan during which the payments include both principal and interest.

The following information is needed to process your new Home Equity Line of Credit. Please bring this documentation so your application is not delayed.

• Identification: Current driver's license and social security card for each borrower.
• Income verification:
  • Most recent paystub
  • Most recent W-2 or 1099
  • If self-employed, commissions or rental income, 2 years of
    • Personal and business returns
    • Year-to-date P&L
• Most recent mortgage statement
• Insurance: Current homeowners insurance policy declarations page