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Which is right for you - a loan or a line of credit?
With potential tax advantages and interest rates lower than most other kinds of consumer credit, North Dallas Bank Home Equity accounts are smart, powerful tools that help you intelligently manage one of your most important assets - your home.
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Home Equity Loan |
Home Equity Line of Credit2 |
| Rates1 |
1st Lien
2nd Lien
|
Fixed Rate
5.875% APR
7.50% APR |
WSJP + 3/4%
Floor Rates:
1st Lien - 6.00%
2nd Lien - 7.00%
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| Terms |
Up to 15 year amortization |
20 year term: 5 year revolving period - interest only; convert to 15 year amortization |
| Amount you can borrow |
$20,000 (minimum)3 |
$10,000 (minimum)4 |
| How the money is distributed |
One lump sum. Ideal for covering large, planned expenses. |
Revolving line of credit. Ideal for flexible spending power and repayment. |
| Tax-deductible interest |
Yes5 |
Yes5 |
| Online Access to account information |
Yes |
Yes |
| Access to funds |
Lump-sum advance |
Convenient access by check (minimum check amount $4,000) and at any North Dallas Bank location. |
1Rates subject to change without notice.
2Variable interest rate based on the Wall Street Journal Prime Rate plus a margin of 0.75% , subject to a floor rate of 6.0% on loans secured by first liens and 7.0% on loans secured by second liens. The Prime Rate , as of 12/16/09, is 3.25%. Rate subject to change without notice. Maximum APR not to exceed 18%. Minimum advance of $4,000.
3The maximum Home Equity Loan amount will range from a combined 50% to 75% of the fair market value (FMV) of your home based upon the total amount of loans secured by your home, the amount of the loan requested, and whether the loan is secured by the primary or a secondary lien on your home .
| Lien Position |
Loan Amount |
|
| 1st Lien
2nd Lien
2nd Lien
2nd Lien
2nd Lien
|
max $500,000
$20,000 - $50,000
$50,001 - $100,000
$100,001 - $150,000
$150,001 - $250,000 |
max 75% of FMV
total loans not to exceed 75% of FMV
total loans not to exceed 65% of FMV
total loans not to exceed 60% of FMV
total loans not to exceed 50% of FMV
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4Home Equity Lines of Credit (HELOC) are restricted by state law to not exceed 50% of the fair market value of your home. Additionally, when combined with other loans secured by your home, the total indebtedness will be limited to a range of 50% to 75% of fair market value.
| Lien Position |
Loan Amount |
|
|
1st Lien
2nd Lien
2nd Lien
2nd Lien
2nd Lien
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max $500,000
$10,000 - $50,000
$50,001 - $100,000
$100,001 - $150,000
$150,001 - $250,000 |
max 75% of FMV
total loans not to exceed 75% of FMV
total loans not to exceed 65% of FMV
total loans not to exceed 60% of FMV
total loans not to exceed 50% of FMV |
5Consult your tax advisor regarding the tax deductibility of home equity interest.
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