Home Equity FAQs
If you’re like most people, the purchase of your home has been your single greatest investment. As you know, your home is also one of your greatest assets.
At 1st Mariner Bank, we understand that the equity in your home is a valuable financial resource. With careful planning, the equity in your home can be used to pay for education, home improvements, automobiles, small business expenses, refinance of high-interest unsecured debt, or anything else you choose to finance.
This is why we’ve designed 1st Mariner Home Equity Lines and Home Equity Loans that combine attractive rates, affordable repayment terms, quick loan approvals, and most importantly, personal service.
A home equity loan is a form of credit that uses your home as collateral. This type of loan has a fixed interest rate and a fixed monthly payment. The proceeds are given to you in one lump sum. You can estimate the available equity in your home by accessing our Loan-to-Value Calculator.
A home equity line of credit is a form of revolving credit that uses your home as collateral. With a 1st Mariner Home Equity Line, you will be approved for a specific credit limit—the maximum balance that you can have outstanding at any given time during the plan. 1st Mariner lines of credit have a variable rate of interest that may fluctuate no more than once a month based upon the prime rate index set by The Wall Street Journal plus 0.75%. You can estimate the available equity in your home by using our Loan-to-Value Calculator.
Funds from a home equity loan or line of credit can be used in any way you choose. At 1st Mariner Bank, we encourage our customers to use these loans and lines of credit wisely. Since your home is your greatest asset, its value should be protected. There are no restrictions on how you choose to use your loan proceeds. People use the funds from home equity loans and lines to finance education, business expenses, to pay off high-interest credit cards, or to make home improvements. Many people secure a home equity line of credit as a buffer in case they should ever need supplemental funds.
Yes. The home does need to be your primary residence.
The repayment period on a home equity loan ranges from 60 months to 180 months depending upon the amount borrowed.
Home equity lines of credit have a draw period of 10 years during which you can borrow money against your home up to your credit limit. Once the draw period ends the loan enters the repayment period. During the repayment period, payments will be due monthly and will equal 0.417% of the balance outstanding at the end of the draw period plus finance charges that accrued on the outstanding balance. The 0.417% is based on 1/240 of the maximum loan term available (1 divided by 240 months = 0.41666 x 100 = 0.417%).
Appraisal, title search, flood certificate, county and/or stamp fees are among the fees you can expect to incur when obtaining a home equity loan. 1st Mariner Bank will pay the closing costs associated with the loan. The homeowner is responsible for maintaining appropriate levels of insurance.
Fees such as those for an appraisal, title search, flood certificate, county and/or stamp fees are among the types of fees you can expect to incur when setting up an equity line. At 1st Mariner we defer these fees. As long as you keep your line open for three years, you will not be responsible for these costs.
Every situation is unique, but the typical turnaround time for home equity loans and lines is approximately two to three weeks.
Among other things, we will evaluate your credit history, the amount that you plan to borrow against the amount of equity that you have, other debts you may have, your employment and residence history, and your ability to repay the loan.
Yes, if you terminate a home equity line of credit during the three-year period following the opening of the account, you will be responsible for the closing costs associated with the line.
Yes. It is not necessary to make supplemental payments, but if you choose to, we will accept this payment with no penalties associated.
Yes. To increase your home equity line of credit you must simply reapply for a higher limit. We will evaluate this request on an individual basis.
No, 1st Mariner Bank does not impose annual fees on home equity lines.
You must look carefully at the credit agreement and examine the terms, conditions and related disclosures for the various plans including the annual percentage rate and the costs you'll pay to establish and maintain the plan. You should evaluate the level of service you can expect to receive from the lender. You are entering a long-term commitment and should ensure that you will be satisfied with the level of service that you'll receive.