Home Equity Line of Credit Disclosures and Assumptions

Rates and Discounts

The sample variable Annual Percentage Rate (APR) and interest-only payment amount shown in the home equity line of credit monthly payment and APR example tables are for illustrative purposes only and assume a new home equity line of credit in second lien position, with a combined loan to value (CLTV) ratio of 60% on a 1- to 2-unit owner-occupied primary residence, and a borrower with excellent credit. The minimum line amount is $30,000, and the term of the loan is 20 years: 10-year draw period, 10-year repayment period. APR is based on the Wall Street Journal Prime Rate on the 15th (or next business day) each month plus a margin and will vary with the Prime Rate but will not exceed 18%.

You can reduce your APR by 0.25% by signing up for automatic payments from a Bank of Internet USA Checking account. If you or we terminate the automatic payment feature, your APR will increase by 0.25%, and your monthly payment will increase accordingly. The sample APR includes a 0.25% discount for maintaining automatic payment from a Bank of Internet USA Checking account. Margin, rate, and payment amount may vary based on property value, line amount, and other factors. Your actual rate and payment amount may be higher or lower than the advertised rate and payment amount. Property insurance is always required and flood insurance is required where necessary.

General Information for Home Equity Lines of Credit Nationwide (Except Texas and Michigan)

• To obtain a home equity line of credit from Bank of Internet USA, a security interest will be taken on borrower's 1- to 2-unit owner-occupied primary residence as collateral. The home equity line of credit must be in first or second lien position. Mobile homes, manufactured homes, cooperatives, investment properties, second homes, condominiums, purchase money home equity lines of credit, and third party origination loans are not eligible collateral. Primary borrower must be a title holder on collateral.
• Closing fees may be paid to Bank of Internet USA or third parties and range from $0 to $4,000 depending on the property type, the state in which the property is located, and the amount of credit extended and include applicable state or local mortgage taxes. Bank of Internet USA will pay up to $750 in closing costs. Borrower will pay any closing costs in excess of $750.
• If you terminate your account within 36 months of opening it, you will be required to pay an early closure fee of $750 plus any mortgage and government taxes and any closing agent or attorney fees Bank of Internet USA paid on your behalf.
• There are no application fees on your home equity line of credit.
• The minimum home equity line of credit amount is $30,000.
• The maximum home equity line of credit amount amount is $250,000.
• For lines of credit, the maximum term is 20 years: 10-year draw period, followed by 10 year repayment period. During your draw period, monthly interest only payments are required, in which a $50 minimum interest only payment is required. Once the repayment period begins you may no longer make advances on the line and you will have 10 years to repay the outstanding balance including principal and interest.
• The annual fee is $50. The annual fee is waived during the first year.

Home Equity Line Of Credit - How to Access Your Funds

You may access funds in your home equity line of credit account by:

Tax Deductibility

Debt Consolidation

The relative benefits of a loan for debt consolidation depend on your individual circumstances and your actual debt payments. You will realize interest payment savings when you make monthly payments toward the new lower-interest-rate loan in an amount equal to or greater than what you previously paid toward the high-rate debt(s) being consolidated. To prevent repeating the same adverse debt scenario in the future, don't add new balances to the credit accounts being consolidated.

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. All approvals are subject to underwriting guidelines. Programs, rates, terms, and conditions are subject to change without notice.