Home Equity Line of Credit Options at SouthPoint Home Equity Line of Credit Options at SouthPoint

HELOCs & Home Equity Loans

Discover a Better Way to Borrow

Your home is a powerful asset. If you have an upcoming large expense or are renovating your current home, SouthPoint can help you tap into the equity in your home.

Home Equity Line of Credit

A home equity line of credit (HELOC) is a flexible and affordable way to cover large, ongoing or unexpected expenses, like home improvements and debt consolidation.

  • As Low as 4.99% APR* for 12 Months, normal rate as low as 7.00% APR*. After 12 months, rate will vary  from 7.00% – 18.00% APR*.
  • Maximum Closing Cost of $299*
  • 24-Hour Access; Use Funds for Anything
  • No Annual Fee
  • 10-year draw period, then take up to 10 years to pay off any remaining balances
  • Interest may be tax deductible (consult your tax advisor)

A home equity line of credit may be the right choice if:

  • You want a lower rate alternative than other loan options
  • You have a good amount of equity built up in your home
  • You want ongoing access to cash, such as for emergencies or college tuition

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What you should know about Home Equity Lines of Credit.
Home Equity Early Disclosure

 

Home Equity Adjustable Rate

A home equity loan, also called a second mortgage, lets you borrow against the equity you’ve built up in your home through your down payment, mortgage payments and increased home value.

  • Choose between a 5/5 or 10/1 Home Equity Adjustable Rate
  • Fixed percentage rate for the first 5 year on a 5/5 or 10 years on a 10/1.
  • Maximum increase of just 2% per rate adjustment with a lifetime maximum adjustment of 5%
  • Ability to borrow up to 90% Combine Loan to Value

A home equity loan may be the right choice if:

  • You want a lower rate than your average personal loan
  • You have a good amount of equity built up in your home
  • You want steady monthly payments
  • You need a large amount of upfront cash, such as for a major home repair or vehicle purchase.

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FAQs

When you take out a home equity loan, the interest rate is fixed, and you get the money in one lump sum. Your payments remain the same, and your rates won’t change over the term of the loan.

In contrast, a home equity line of credit (HELOC) typically has a variable interest rate—although SouthPoint offers the option to lock in at low fixed rate. Also, a HELOC allows you to withdraw funds when you need them, up to your credit limit, during the term of the loan.

Your loan-to-value ratio (LTV) is a percentage that indicates how much equity you have in your home. LTV is used to help determine rates for home equity loans and lines of credit.

To calculate your LTV, divide your mortgage balance by your property’s value like this:

Mortgage balance ÷ Property value = LTV

Home equity loans and lines of credit are secured against the value of your home, which means if you don’t make payments you can face serious consequences such as foreclosure and credit damage – the same as if you don’t make your mortgage payments.

However, when you borrow from your home equity responsibly, you can benefit from lower rates and more favorable terms than other loan types, in addition to potential tax advantages. Home equity can be a great way to fund big plans, especially home improvement projects that add value to your home and enhance your quality of life.

The bottom line is to approach home equity loans and lines as you would any other type of lending product: you should have a reason for borrowing and a plan for how you’ll pay it off.

With a home equity line of credit (HELOC) from SouthPoint, you can borrow up to 90% of your home’s equity as a line of credit. It’s very convenient, and it works similarly to a credit card. Borrow what you need, when you need it, until you reach your credit limit.

Withdrawing money during the draw period: This is the set amount of time (usually ten years) that you can borrow from your line of credit. You can extend your draw period, depending on your credit situation.

Repaying during the draw period: During the draw period, you can make the minimum payments on what you’ve borrowed, however we encourage paying more to reduce the balance.

Repayment period: Once the draw period ends, you won’t be able to withdraw funds. At this point, your loan enters the repayment period, when your payments will include both principal and interest. These payments will be a lot higher than the interest-only payments you made during the draw period.

There are several easy ways to access the funds in your line of credit.

  • Transfer funds from your line of credit to another SouthPoint account directly from Online or Mobile Banking.
  • Visit a branch to get a cashier’s check.

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