Home Equity Line of Credit
A personal line of credit secured by a first or second mortgage on the borrower's 1 to 4 family residence located in NJ. This means that the borrower is granted a credit line based on the equity in their property, which can be accessed by check. It is a variable rate, simple interest line of credit, which permits the borrower to create his own loan by writing a check, up to a maximum approved line.

Features:
Home Equity Lines of Credit are available up to a maximum of $500,000 for a 15 or 20 year term. Interest rate is variable and adjusted monthly. The amount of the loan is subject to the borrower's income, credit, and the equity in the property. Payments are based upon interest plus principal due of either 1/180th or 1/240th of the balance depending upon plan selected. At the present time the application fee is being waived. There is a maximum loan to value requirement (LTV) of 80%. If combined first and second liens exceed $500,000, loan to value ratio may not exceed 65%. Interest on the loan may be tax deductible (refer to your tax advisor).

Rates:
Home Equity Line of Credit rates can be found here. The interest rate is adjusted on the last day of each month, is effective the first of the following month, and is based on the highest prime rate appearing in the Wall St. Journal on that day. The minimum rate is currently 4.00%; maximum rate is capped at 14.25%. Additional payments may be made at any time, over and above the scheduled minimum payments.