Home Equity Cash Reserve/ Line Of Credit

Question 1

Where are HECR and HELOC applications submitted through?

Answer 1

Loan Request Manager

Question 2

What is a simple explanation of a HELOC?

Answer 2

It functions like a credit card with your home as collateral.

Question 3

How does interest for a HELOC differ from a credit card?

Answer 3

Which a credit card you pay interest on the balance at the end of the month where a HELOC you pay interest daily on the amount you use.

Question 4

What are the basic maturity terms of HELOC’s?

Answer 4

5 or 10 years

Question 5

If the applicant has a higher LTV what maturity will they likely receive?

Answer 5

A shorter maturity

Question 6

What amount of money can you file a lien on?

Answer 6

$3,000 or more

Question 7

How much must a HELOC be for?

Answer 7

$3,000 or more

Question 8

What are common uses of a HELOC?

Answer 8

Educational expenses, investments, automobile purchases, home improvements, etc.

Question 9

HELOC’s are interest only with fixed interest rates (T/F)

Answer 9

False, HELOC’s are Interest only but with a variable interest rate

Question 10

What is 200 basis points equivalent to in percentage?

Answer 10

2%

Question 11

For a HELOC, what is incurred with a Prime + 0 rate?

Answer 11

An annual fee ($75)

Question 12

Where do you find interest rate information?

Answer 12

Consumer Rate Sheet

Question 13

What kind of interest rate does a HELOC have?

Answer 13

Variable

Question 14

What kind of interest rate does a HEIL have?

Answer 14

Fixed interest rate