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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 loan amount 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 loan amount is $5,500 and in most cases the maximum is $1,000,000.
Are there any closing costs or origination fees?
No, you will not be charged any loan origination fees, points, or closing costs.
Is there a prepayment or early closure fee?
You will be charged a fee of $500.00 if you choose to payoff your loan within three (3) years of the date the loan was originally made. We will not charge you a fee if your loan remains open more than three (3) years or your loan is closed for reasons of default, casualty loss, or refinancing with National Bank of Arizona.
