Prime + 0%
for the life of the loan 

Program Basics
Our Home Equity Loan Program establishes a secured "line of credit" that you may draw on – up to your credit limit. The minimum initial advance (at closing) is $5,000.00 and each additional advance must be at least $1,000.00.   The minimum required monthly payment on your loan may vary but will never be less than $100.00.  The security for this loan is a mortgage against your home. If you fail to repay the loan – you could lose your home.

If you are the owner of a 1 - 4 unit home, located within the state of New York, you may borrow up to 75% of the appraised value minus your first mortgage. For example, if the appraisal is $100,000.00 and the 1^st mortgage is $50,000.00, your maximum line of credit is $25,000.00 ($100,000 * 75% = $75,000 - $50,000 = $25,000).

The Application Process
If you wish to apply for a Home Equity Loan, simply stop by your branch office for: 

• Home Equity loan application;
• "When Your Home is on the Line" Brochure; and
• "Early Disclosure Form" (which contains much of the same information that is contained on this page–but is in the "legal" format).

Complete and return the loan application. At that time, we will give you a "Good Faith Estimate" of the fees involved. We will let you know if your loan is approved or disapproved within 3-4 days.

If your loan is approved, we will send you a "Commitment Letter" which provides additional details about your loan. You must sign this letter and return it to us.

When you send the letter back, you should also include the following items: a copy of your deed; your survey; the most recent Title Insurance Policy or Abstract of Title; and the most recent Paid Tax Receipts on the property.

After we receive your Commitment Letter and the above items, we forward your file to our attorney. He will start the title search and we should be able to "close" your loan in 2 - 3 weeks (depends on mortgage market volume).

At the closing, the note agreement and other documentation is signed, but you will not receive any of the loan proceeds yet. The law mandates a "3 day grace period" in which you have the option of canceling the loan.

After the 3 day period, you go to your branch office to pick up your first loan check(s). Future advances only require the completion of a simple "Advance Request Voucher".

Variable Rate Loan
This is a "variable rate" loan, which means that your interest rate may change on each anniversary date of your loan. It cannot, however, change by more than 2% per year (cap) —in either direction. The index we use is based on the Prime Rate as published in the Wall Street Journal. The interest rate that you are charged is the Prime Rate plus 0% for the entire term of the loan over the life of your loan, the rate will not drop below 4% (the floor) or rise above 14.9% (the ceiling).

Repayment Terms
The repayment terms depends on the outstanding loan balance as follows: payoff period is:

• up to $15,000                   10 years
• $15,000.01 - $25,000         15 years
• over $25,000                             20 years

 Draw Periods
You may make additional loan advances under this plan (up to your loan limit) for a period of five (5) years. At our option, we may renew your draw period for an additional five (5) years. We may find it necessary to terminate your line of credit or restrict additional advances if you take any action which jeopardizes the safety of this loan. Exact reasons are detailed in the "Home Equity Early Disclosure" which you will receive when you apply for the loan.

 2^nd Mortgage Status
If there are any additional mortgages or liens on the property (other than the 1^st mortgage), they must be paid off at the time of closing. You may add those liens to your initial advance and they will be paid off from your loan proceeds.

 Property Insurance
You must maintain property insurance on the property for the entire length of our mortgage. The amount must be high enough to cover your 1^st mortgage and our 2^nd mortgage on the property.

Fees and Charges
Although we pay most of the fees, there are some fees that you must pay. At the time of application, you will receive a "Good Faith Estimate" (based on the actual amount you wish to borrow).
Note: if you wish to-- you may add these fees on to your initial loan advance.
Disclaimer: The following figures are rough estimates for informational purposes only.

• For a Line of Credit under $20,000:
  • Abstract or Title Search:  about $150.00
  • Mortgage tax:  Line of credit amount * .0075 
     (i.e. $15,000. * .0075 = $112.50)
  • Flood Insurance:  if applicable.
    
     
• For a Line of Credit over $20,000:
  • Title Insurance (estimate only) if the line of credit is between: 
    • $20,000 -- $34,999:    the base cost is about $450. (if financed:
       this is equivalent to about $4.00 per month on a 20 year loan).
    • $35,000 -- $49,999:  the base cost is $450. plus $6.00 for each thousand over $35,000.
    • $50,000 -- $100,000: the base cost of $550. plus $5.00 for each thousand over $50,000.
                           
      *NOTE: If the policy is issued within 10 years of a previous insured mortgage, the title insurance cost is significantly reduced.
  • Flood Insurance:  If applicable