Home Equity Credit Lines
Frequently Asked Questions
General
Application Process
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 a 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.
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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.
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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.
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How much can I borrow?
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 $10,100 and
in most cases the maximum is $1,000,000.
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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.
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Are there any closing costs or origination fees?
No, you will not be charged any loan origination fees, points, or closing
costs.
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Is there an annual fee?
No.
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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 and increasing the loan limit by $20,000.
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How can I apply for a loan?
You may apply on-line, by phone, or in person.
On-Line: Our secure on-line application is available 24 hours a day, 7 days a week.
By Phone: To apply by phone, call us at 1-800-995-5626.
Monday - Thursday 8:00 a.m. - 7:00 p.m.
Friday 8:00 a.m. - 6:00 p.m.
Saturday 10:00 a.m. - 3:00 p.m.
All times are Mountain Time
zone.
In Person: We have over 75 statewide locations in 52 communities. Find the
branch closest to you. Click Here.
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How long does the application process
usually take?
Whether you are applying on-line, over the telephone, or in the branch the application process is very easy and quick. Depending on the type of loan and whether you have a co-applicant, the application process can take between 10 to 15 minutes.
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How quickly can I get approved?
On-Line: Usually, you will have an answer within one business day upon submission of your application, during our stated business hours. This will be subject to verification of your application information and other loan conditions or stipulations.
By Phone: Generally, you will have an answer while you are on the phone, subject to verification of the information you provided and other loan conditions or stipulations.
In Person: Usually, you will have an answer within one business day upon receipt of a completed application during normal business hours, subject to verification of your application information and other loan conditions or stipulations.
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What information do I need to have
available to apply?
Understanding the application process prepares you to make better decisions
and will make the process easier. Click on the loan type below for a
checklist to assist you in the application process. *Some pages in our site are in "PDF" format and require Adobe Acrobat Reader 8.0 or higher to view properly. Click here to download and install Acrobat Reader.
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Are there any fees or costs
to apply?
There are no fees or costs to apply.
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Are there any fees or costs associated
with my loan?
Generally none. We do not charge any loan origination fees, points, or closing
costs.
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How quickly can I close my loan?
The average time for closing a loan varies by loan type. For non-real estate
loans, you can usually close within 3 business days after all required information
is obtained by the bank. For real estate loans, closing times will vary based
on the type of appraisal required, but generally you can expect to close within
20 to 25 business days.
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Where do I go to close my loan?
You may close your loan at the branch of your choice.
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What do you do with my information?
Is it secure?
We put a high priority on safeguarding your information. Please refer to
our Privacy Statement for details.
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