Home Equity Lines of Credit
These loans are ideal for those who want to have ready cash available for any of a multitude of reasons. The purposes are often many of the same ones shared by borrowers of amortizing home equity loans (see description on the appropriate page on this site).
Home equity lines of credit are open ended loans. There is a five year period during which you decide the portion of the loan you need. We give you a checkbook so that you can disburse the loans proceeds when you want. You can draw down funds or repay them at any time. Each month you pay interest only on the portion of the loan that has been outstanding during the prior month. The amount outstanding at the end of the initial five year period is required to be repaid in equal monthly principal payments over the following ten year period. Interest on the outstanding balance of the loan is also paid during the ten year repayment period. You may repay the principal in part or in full at any time without penalty.
The interest rate is variable, can change monthly, and is based on the Wall Street Journal Prime rate. The prime rate can be verified easily since it is regularly printed in many newspapers and financial publications. Loans secured by owner occupied homes bear interest that is the same as the prime rate. Other loans may have a margin added to the prime rate.
Please call 215-396-8585 for further details or to obtain an application.