This is an equity line
of credit second mortgage; it has a 15 year draw period, during
which you may make withdrawals. Interest only payments on the money
you have taken are required during the draw period. You may repay
principal and then re-draw the money during the first 15 years.
At the end of the draw period (15 years),
you begin repaying principal AND interest. The minimum monthly
payment during the 10 year repayment period is the sum of accrued interest
and 0.8333% of the principal loan balance. Initial rate and payment
are fixed for the first 3 months.
the fine print:
† The fourth month payment adjusts
with Prime as published in the Wall Street Journal, plus a margin.
† A termination fee will be charged
if this HELOC is closed within the first 36 months.
† The loans are not assumable.
AUTOMATED PROPERTY VALUATION‡‡
This loan product allows the use of an Automated Valuation Model (AVM)
to determine property value in lieu of a standard appraisal. (Translation:
Saves you money)
‡‡
AVMs are statistically based computer programs that use real estate
information such as comparable sales, property characteristics, tax
assessments, and price trends to provide an estimate of value for
a specific property.
