Is a Home Equity the right choice for you?

Sometimes the best way to pay for something is to borrow now and pay later.  And right now is a great time to do just that by applying for a Home Equity Line of Credit or a Fixed Rate Home Equity Loan.

Both types of loans can provide the cash you need to consolidate debt, make home improvements, pay college tuition, etc.  Arundel Federal Savings Bank offers revolving home equity lines of credit as well as fixed rate/term home equity loans. As a revolving line of credit, you can borrow and repay funds for the duration of the draw period.

 

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is a line of credit extended to you and secured by your home. It is a revolving credit line with check writing convenience.

Features:

• Revolving line with check writing convenience

• 10 year initial draw period (renewable)

• 15 year repayment period

• Interest-only payments during draw period

• Access up to 90% of the available equity in your home

• Interest may be tax deductible (consult your tax advisor)

• No closing cost option available (excludes city/county transfer tax)

  • Borrowers must take $10,000 advance at closing

  • Prepayment Penalty

 

Fixed Rate Home Equity Loans

Borrow from the equity that you have established in your home to finance home improvement projects, large purchases or consolidate debt with consistent monthly payments over a set period of time.

Features:

• Fixed interest rates

• Fixed monthly payments

• Terms up to 15 years

• Access up to 90% of the available equity in your home