Review these questions and answers to gain a better understanding of how a home equity line of credit works and how it can be beneficial for you.

Q: What can I use my Home Equity Line of Credit for?

A: Home equity funds can be used for anything.

Q: What are your current rates?

A: Click here to view our current HELOC rates for properties with 80% or less loan to value. If your property has a higher loan to value contact a loan officer for applicable rates. Our rates are based on the amount of the credit line as established at loan closing.

Q: How long will my Home Equity Line be available to me?

A: The line of credit would be available to you for 10 years for variable rate lines of credit (PrimeTime HELOC). We also offer a fixed rate HELOC option that would be available for 5 years.

Q: How can I access my Home Equity Line?

A: Home Equity funds can be accessed several ways.
  • You can order a book of checks which are directly linked to the home equity account. Use these checks to make purchases or payments.
  • You can request a withdrawal or funds transfer either in person, by phone or by mail.
  • You can also transfer funds from your HELOC to other CNB deposit accounts using OnLine Banking. You can then access the funds, from your personal checking account for example, using checks, CheckCards and ATM cards.

Q: How are annual fees calculated?

A: If a borrower has a Home Equity Line of Credit (HELOC) of $40,000 and carries an average yearly balance of $15,000 then the annual fee is based upon the average of $25,000 that the customer would have available to them during the year.
Example: $25,000 x .003 = $75 annual fee.
Perhaps they use more of their credit line the next year, carrying an average balance of $30,000. Then their annual fee would be based on the $10,000 that the customer had available that year.
Example: $10,000 x .003 = $30.

SPECIAL NOTE:

The annual fee for the first year is waived for all HELOCs. Also, if your credit line is $20,000 or less your annual fee is a flat $50.

Q: How are minimum monthly payments determined?

A: Minimum monthly payments are calculated at 1.5% of the outstanding principal.
Example:
If a customer has a balance of $35,000 on the final day of the billing cycle then:

$35,000 x .015 = $525 minimum monthly payment.

Q: What is required to apply for a Home Equity Line of Credit?

A: We normally collect the same information as on a regular mortgage. Click here for a list of what you'll need to bring to your application meeting.

Q: Can I apply online for a Home Equity Line of Credit?

A: Yes! Our online loan application is a great way to get the HELOC application process started. Click here to apply online.

Q: Are documentation fees the same thing as closing costs?

A: Yes, you will note in our disclosure language the mention of documentation fees. This is just another term that also means closing costs. $100 documentation fee (closing costs) for current CNB mortgage customers. $225 documentation fee (closing costs) for customers whose mortgage is not with CNB. All documentation fees (closing costs) are waived if you open a HELOC at the time of a first mortgage closing.

Q: Will I need a property appraisal?

A: Depending on the size of the line requested and the age of the previous appraisal a new appraisal could be necessary. Customers with no current mortgage with the bank would always require a new appraisal. All requests would need an updated title search.

Q: How much is property insurance?

A: Property insurance quotes can be obtained from an insurance agent. Most homeowners will already have insurance on the residence. Evidence of sufficient insurance would need to be collected by closing.