Home Equity Lending
Our Home Equity loan solutions can help you accomplish many items on your “to-do” list. Consider borrowing on the equity you have built up on your mortgage for that new water heater, home remodel, or dream vacation.
First United Bank & Trust provides:
- Borrowing options with competitive rates
- Spending power to handle a variety of expenses
- Local expertise and decision making
- Flexible options to access your funds! Use a card or checks when shopping or transfer funds to a First United account.
Use your loan, your way.
Available funds for your home equity loan can be accessed by using a debit card, book of home equity loan checks, or by transferring the funds to a First United account.
You can borrow up to 80% of the value of your home, minus any outstanding debts that may already be owed on the home.
Your rate is determined by your credit score and the requested credit limit. Again, initially the rate is variable and is based on the Prime Rate, as published in the Wall Street Journal. Our Home Equity loans are initially established as a variable-rate, revolving line of credit, with a 30-year term.
The first 15 years is the draw period, allowing you to make purchases and payments regularly, similar to a credit card. The next 15 years is strictly a repayment period, meaning no new draws can be made and payments are required on any remaining balance.
Estimated payments are provided once we have the chance to review your specific information.
We also provide you with an option to lock portions of your variable rate loan (line of credit) balance at a fixed rate (installment loan), up to 3 times, using terms of 5, 10 or 15 years.
Our Process.
Typically, real-estate secured loans can take up to 5 weeks from application to closing. This varies based on how long it takes :
- to enter the application information completely and accurately
- the county to provide appraisal or other necessary documentation
- our underwriting team to review and decision.
Let’s walk through each step:
1. Begin by gathering the following:
- ID – examples include Driver’s License, Passport, Resident Alien card
- Tax returns form past 2 years to verify your income.
- A copy of the deed, if you have one handy – This can often help speed up the process.
- Home Owner’s Insurance/ flood insurance as needed (not required for the application)
2. At this point, you are ready to complete our online application.
If you need assistance, just ask! We are happy to set up an appointment to help you by phone or in person.
3. After the application is submitted our underwriters will:
- Review the application.
- Check your credit score.
- Request an appraisal from your county.
- Review comparable sales in your area for the best assessment of your home’s value. There are occasions when a full walk-through appraisal is required, and the appraiser will schedule with you directly. We will continue to help ensure your loan is established in a reasonable timeframe.
- Order title and flood zone searches, which takes approximately 3-5 business days.
4. Lastly, we will schedule your closing.
Prior to closing, homeowners/flood insurance will need to be in place with First United listed as lienholder. We will be in touch with you throughout the checklist and look forward to seeing you in person to finish the process!
There are costs associated with your loan which will be due at closing. You have the option of financing them as a first draw on the loan. Those fees may include, but not limited to:
- Appraisal
- Title
- Flood
- Recording
- Stamps
- Tax Service Fee
- E-Recording
Lock In Your Rate
At First United Bank & Trust, you don’t have to choose between a revolving line of credit or a term loan. Our Home Equity Lock-In Line of Credit account allows you to get the best of both worlds; a revolving line of credit and the ability to lock in a fixed interest rate on up to three portions of your line for 5, 10 and 15 year periods.*
A portion of your line can be a revolving line of credit that lets you write checks for any expense. And you can use other portions of your line to pay for large purchases. It can all be done on a fixed interest rate, or you can choose a variable rate in order to take advantage of market rates.
| Loan Amount | Rates as low as * |
|---|---|
| $10,000 – $49,999.99 | Prime + 0.50% |
| $50,000 – $99,999.99 | Prime + 0.25% |
| $100,000 – $500,000 | Prime - 0.25% |
| $100,000 – $750,000 Available for first lien only | Prime - 0.25% |
| * The annual percentage rates (APR) and details within the table above are accurate as of 10/4/24. Rate is based on line amount and credit rating. First lien subject to a 3.50% floor rate, second lien subject to a 3.75%, both with a lifetime Annual Percentage Rate (APR) cap of 16.00%. Loans subject to credit and property approval. Rates, program terms and conditions are subject to change without notice, applicants must be 18 years or older to apply. All standard fees apply. Upon request we will provide you with a breakdown of any third party fees required. Property insurance is required; additional flood insurance may be required as well. Other restrictions and limitations apply. Rates are variable and based on the Prime Rate (as published in The Wall Street Journal). |
| Term | Loan Amount | Rates as low as * |
|---|---|---|
| 5 year lock | $3,000 - $50,000 | Current line rate + 0.00% |
| 10 year lock | $25,000 - $150,000 | Current line rate + .25% |
| 15 year lock | $50,000 - $250,000 | Current line rate + .50% |
| * The annual percentage rates (APR) and details within the table above are accurate as of 10/4/24. You can lock in portions of your Home Equity Line of Credit (HELOC) for fixed lock terms of 5, 10 or 15 years. The APR for the locked term will be calculated by adding a margin to the current HELOC APR that applies as of the date of the lock. You may request a 5 year lock of $3,000 to $50,000; a 10 year lock of $25,000 to $150,000 and a 15 year lock of $50,000 to $150,000 of your available credit. See Home Equity Rates disclosure in the table above for more details. |
Additional Features and Services
Internet Banking
Execute all sorts of banking transactions without having to leave your home or office. It’s easy and secure.
Mobile Banking
On the run? You can access account balances, transfer funds and even pay bills using our mobile app.
Mobile Deposit
Just snap a picture of your deposit with your smartphone, press a few buttons, and you’ve completed your banking for the day.
Visa Debit Card
Earn reward points without accumulating debt with the card that links to your checking account.
Telephone Banking
Access account information, transfer funds, and even place check reorders 24-7 from the convenience of your phone.
Customer Service Center
Our skilled associates are just a phone call away, until 8 PM on weekdays, to answer all your banking needs.