Home Equity Loans
Home Equity Loans from North Brookfield Savings Bank
North Brookfield Savings Bank offers Home Equity Loans and Home Equity Lines of Credit to homeowners in Central and Western Massachusetts. You’ll be able to tap into the equity you have in your home at a highly competitive rate and with flexible terms catered to meet your particular needs. With either of our equity products, you may be able to borrow up to 75% of your home’s appraised value, less the outstanding balance of your first mortgage and any other liens. Plus, the interest may be tax deductible. To determine if the interest you may pay is tax deductible, we recommend discussing it with your tax advisor. If you have any questions regarding our loans or lines of credit, don’t hesitate to contact one of our knowledgeable representatives.
Explore Our Fixed Rate Home Equity Loans
A home equity loan is a one-time large-sum loan that allows borrowers to use the equity in their home as collateral. Home equity is the difference between how much an individual owes on their mortgage and how much their home is worth. This form of loan is ideal for homeowners who want the security of a fixed loan payment for the life of the loan. It’s a perfect loan for home improvement projects and major expenses. We offer competitive rates and have an efficient approval process. Our home equity loans are only available for properties in Massachusetts only. Before you apply, we suggest viewing our rates.
Our Home Equity Lines of Credit
A home equity line of credit is like a credit card. Individuals can borrow funds as needed, up to a maximum credit limit, using the home’s equity as collateral. With this, individuals are only required to repay the funds they use. This is ideal for homeowners who prefer the flexibility of a revolving line of credit. Individuals will have to make interest-only payments for the first ten years. As you repay your outstanding balance, the amount of credit available is replenished. With this option, you may receive a fixed introductory rate for a specific timeframe. Like our home equity loans, our home equity lines of credit are only available for properties in Massachusetts. Make sure to view our rates before applying.
Vital Information Regarding Home Equity Lines of Credit
Property must be an owner-occupied 1-4 family residence located in Massachusetts. The minimum credit line is $10,000. Maximum combined loan-to-value is 75% of the appraised value less any existing first mortgage balance if North Brookfield Savings Bank holds the 1st mortgage. Maximum combined loan-to-value is 70% of the appraised value less any existing first mortgage if an external bank has the 1st mortgage. Subject to credit approval. Homeowners insurance is required. Flood insurance may be necessary—20yr loan with a 10yr draw period followed by a 10yr repayment period. The minimum draw is $500—the minimum monthly payment during the draw period based on interest due. During repayment, your minimum monthly amount will equal 1/120th of the principal balance outstanding at the end of the draw period plus accrued interest and, in no event, less than $100. Payment amounts do not include taxes and insurance. NBSB pays closing costs if the loan amount is $250,000 or less. An appraisal fee ranging from $100-$450 is required and to be paid by the borrower. $105 recording fee to discharge a prior mortgage may be required. Loan amounts over $250,000 will be the borrower’s responsibility for paying all closing costs. Closing costs range from $3,000 – $8,000. A termination fee of $500 is required if the credit line is formally closed within 36 months. Loan amounts over $647,200 are considered Jumbo and may be subject to a higher rate or fees.
Answering Your Home Equity Loan Questions
It’s not uncommon to have questions regarding a potential home equity loan or a home equity line of credit. As we’ve helped individuals complete home improvement projects or pay for major expenses, we’ve encountered several common questions. Here are some of the most common questions we receive regarding our home equity loans and home equity lines of credit:
- What’s the difference between a home equity loan and a line of credit? – With our home equity line of credit, borrowers can withdraw money as they need up to a pre-determined credit limit. Home equity loans provide a large sum at the start of the loan and come with a fixed interest rate and monthly payments that don’t change for the life of the loan.
- How much can I borrow with a home equity loan? – The amount you can borrow can be calculated by subtracting the value of your home from how much you owe on your mortgage. Other facts, such as income, credit history, and market value, can affect the loan amount.
- Is a home equity loan a mortgage? – Home equity loans are often referred to as a second mortgage since they offer fixed rates on a reoccurring steady schedule.
- Can a home equity loan be used to purchase a second home? – Yes, you can, but the amount you receive is based on the equity of your first home.
- What’s better, a home equity line of credit or a home equity loan? – With home equity loans, you get one large sum, while with home equity lines of credit, you can borrow as you need.
- Can I consolidate my debt into my home equity loan payments? – Yes, you can. Using your home equity loan to pay off major expenses can roll all your debt payments into one.
- What’s better, refinancing my mortgage or home equity loans? – There are several things to consider when making this decision. It helps to determine your primary goal with your loan and how long you plan to live in your current home. Contact one of our knowledgeable representatives if you have any questions regarding our loans and rates.
Clear Your Home Improvement List With Our Home Equity Loans
Whether you need a home equity loan for home improvement projects or a home equity line of credit for a dependable cash flow to avoid major expenses, North Brookfield Savings Bank has the solutions for you. We offer highly competitive rates and flexible terms to meet your needs. You may borrow up to 75% of your home’s appraised value. Talk to one of our knowledgeable representatives, or if you’re ready, fill out applications online.
*All Equity Lines of Credit: Property must be an owner occupied 1-4 family residence located in MA. Minimum credit line $10,000. Maximum combined loan to value is 75% of the appraised value less any existing first mortgage balance if the 1st mortgage is held by North Brookfield Savings Bank. Maximum combined loan to value is 70% of the appraised value less any existing first mortgage if the 1st mortgage is held by an external bank. Subject to credit approval. Homeowners insurance is required. Flood insurance may be required. 20yr Loan with a 10yr draw period followed by a 10yr repayment period. Minimum draw $500. Minimum monthly payment during draw period based on interest due. During repayment, your minimum monthly payment will be equal to 1/120th of the principal balance outstanding at the end of the draw period plus accrued interest and in no event less than $100. Payment amounts do not include taxes and insurance. Closing costs paid by NBSB if the loan amount is $250,000 or less. An appraisal fee ranging from $100-$450 is required and to be paid by borrower. $105 recording fee to discharge a prior mortgage may be required. Loan amounts over $250,000 will be the borrower’s responsibility for all closing costs to be paid. Closing costs range from $3,000 – $8,000. Termination fee of $500 required if the credit line is formally closed within 36 months. Loan amounts over $647,200 are considered Jumbo and may be subject to a higher rate or fees.
Thank you for considering North Brookfield Savings Bank for your Home Equity financing needs.
