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© 2004
National Bank of Arizona
Privacy
Statement
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Answers to Frequently Asked Questions:
What is the difference between a home equity loan and a home equity line of credit?
A home equity loan is one time loan with a fixed rate for a fixed term. Your monthly payments stay the same each month. A home equity credit line is flexible revolving line of credit that allows you to borrow against the equity of your home whenever you need it. A home equity credit line features a variable interest rate with a draw period of 10 years and a repayment period of 20 years. You may access funds during the draw period up to your credit limit. During the draw period, you will make monthly interest payments that may increase or decrease based on changes in interest rates or changes in your outstanding principal balance.
Must I own a home to get a home equity line of credit?
Yes, you must own your home. Residential rental properties are not eligible.
Must I occupy the residence I’m using as collateral?
Yes. Vacation or second homes are also eligible even though you may occupy the residence only part of the year. Residential rental properties are not eligible.
Your credit limit is determined by taking a percentage (for example 80%) of your home’s appraised or fair market value after subtracting the balances of any outstanding mortgages on the property. The maximum percentage approved by the bank is based on your home’s appraised or fair market value. If you qualify, the minimum line of credit amount is $10,000 and in most cases the maximum is $1,000,000.
How can I access my home equity line of credit?
You can access your home equity line of credit by (1) special checks provided with your home equity line or (2) making withdrawals at any National Bank of Arizona branch.
Are there any closing costs or origination fees?
No, you will not be charged any loan origination fees, points, or closing costs.
No.
Is there a prepayment or early closure fee?
You will be charged a fee of $500.00 if you choose to close your line of credit within three (3) years of the date the line was originally opened. We will not charge you a fee if your line remains open more than three (3) years or your line is closed for reasons of default, casualty loss, or refinancing with National Bank of Arizona.
