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| Learn About a Home Equity Line of Credit |
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Questions and Answers |
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| What is a Home Equity Line of Credit? |
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A Home Equity Line of Credit works essentially the same way as a credit card: It's a revolving line of credit, but unlike a credit card, it uses the equity in your home as your line of credit. With an Atlantic Home Mortgage Line of Credit, you make interest-only payments for the first ten years and you make payments only if and when you draw cash. After the first 10 years the full balance is amortized and paid off over 20 years. You can use your home Equity Line of Credit for anything - home improvements, a vacation, tuition, a new car - anything. |
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How is my Interest Rate/APR calculated? |
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| Your Interest Rate/APR is calculated based your credit score, and the combined loan-to-value ratio (CLTV). We determine your combined loan-to-value ratio by adding up the total balances of any current loans and the amount of the loan you are requesting and dividing that number by the value of your home. Generally, the lower CLTV ratio that you have, the lower your Interest Rate/APR will be. |
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| What is the term of the loan? |
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On most of our HELOC�s, this loan has a 10-year draw period and then the balance is amortized over a 20-year4 repayment period. |
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Is the Interest Rate/APR adjustable? |
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Yes, it is adjustable. When your rate adjusts, it will be the result of an index plus a margin. The index is the Prime Rate as published in the Wall Street Journal at the time of the adjustment period. The margin will be determined at the time of your application. The index can change, but the margin will not. A change in your APR will change your minimum monthly payment. |
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Step 1 - Getting Started |
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What should I expect from applying online for a Home Equity Line of Credit? |
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| Here's how our process works. First, we'll ask for some basic information about you, your income and the property. We'll need your social security number to obtain a copy of your credit report. Then, in only a few seconds, we'll "connect" electronically with your credit report then ask you to identify which loans are directly tied to the property you're financing. After that it's just a matter of seconds until we reach a decision regarding your request for a home loan. Your approval will outline the terms of the Line of Credit, one of our Loan Advisors will call you to confirm the information you've entered. |
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How long before I get my check? |
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| In most states you'll receive your check within 5 days of signing your closing papers. Due to the federally mandated three day right of rescission period, the attorney will cut the check and overnight it to you on the fourth day and you'll receive it on the fifth day. In escrow states, the three day right of rescission has to expire and then the documents have to be recorded, so it can take up to 12 days after the day you sign for you to receive your check. |
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Step 2 - Property / Income Information |
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What income should I include? |
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| Gross Monthly Income includes income from your salary, part-time jobs, dividends and interest, rental property income, social security, child support, pension, alimony, etc - any and all monthly income that you collect. You do not have to include alimony, child support or separate maintenance unless you want us to include it when we evaluate your application. |
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Why do you need to know my Social Security Number? |
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We'll need your social security number to obtain a copy of your credit. |
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| Step 3 - Loan Approval |
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What if I'd like a Line of Credit for more than the amount I'm approved for? |
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The amount we approved you for is the maximum amount we're able to loan you based on the amount of equity you have in your home and your ability to repay the loan. |
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Is there a minimum amount of money I can borrow or take out a draw on? |
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| It will depend upon the Lender we choose for you. We will disclose a minimum draw, if applicable, before we proceed to close your loan. |
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Will I have to pay closing fees? |
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Atlantic Home Mortgage has eliminated most of the closing fees, however, in order to close your loan you will be charged city, county and state recording fees and taxes. You will also be charged attorney fees. These closing fees can either be deducted from your line of credit or you can bring a cashier's check to pay for them at closing. We work with some Lender's that will pay all of your closing costs! |
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Step 4 - Schedule Your Closing |
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What should I expect at closing? |
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We will coordinate the closing with you, the Lender and your attorney at a time that is most convenient to you! |
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