Home Equity Line of Credit
A personal line of credit secured by a first or second mortgage on the borrower’s primary or secondary residence in NJ.  It is a variable rate, simple interest line of credit, which permits the borrower to create their own loan by writing a check, up to a maximum approved credit line.

Features:
The amount of the equity line of credit is subject to the borrower’s income, credit, and equity in the property.  For 1-4 family residences NVE Bank offers a line of credit up to a maximum of $500,000.00. If the residence is a condominium or townhouse the maximum equity line is $250,000.00. 

Payments are based upon interest plus principal due of either 1/180th or 1/240th of the balance depending upon the plan selected. 

A first or second lien position will be taken on the subject property.  For 1-4 family properties there is a maximum loan to value requirement (LTV) of 75%.  If the combined first and second mortgage liens exceed $500,000.00, the LTV ratio may not exceed 60%. For condominiums and townhouses the maximum LTV ratio may not exceed 70%.

Rates:
Home equity line of credit rates can be found here. The interest rate is adjusted on the last day each month, is effective the first of the following month, and is based upon the highest prime rate appearing in the Wall Street Journal on that day.  The minimum or floor rate is currently 4.75%; maximum rate is capped at 14.25%.  Additional payments may be made at any time, over and above the scheduled minimum payments.