Home Equity Line of Credit

There are times in life when you can plan on borrowing money, such as a child's college tuition, a wedding or to expand your business, and then there are other other times when a financial emergency strikes when you least expect it such as major car repairs, the roof leaking or a home heater breaking down.

With a home equity line of credit from First National, you'll sleep better knowing that you have money available for both planned expenses and at a moment's notice for unexpected financial emergencies.

Here's how it works.

Once you apply for and are approved for a home equity line of credit, you'll receive a set of checks which you can use over the next ten years whenever you need money or you may use First National's Online Banking to transfer from your home equity line of credit to a First National checking account.

During the months that you have an outstanding principal balance, we will mail you a bill for the accrued interest. If you have a zero principal balance, you pay nothing.

There is no annual fee for maintaining your home equity line of credit.

The home equity line of credit has a variable rate feature and the annual percentage rate and the minimum monthly payment can change as a result. The interest rate for the home equity line of credit is equal to New York Prime Rate as published in the Wall Street Journal. As of today, the rate is 3.25 %.

Even though the home equity line of credit features a variable rate, there are limits to how high your rate can go. The rate can go no higher than 18%.

The minimum monthly payments will not reduce the principal that is outstanding on your line of credit by the end of 10 years. You will then be required to pay the entire balance in a single payment, or you may apply to refinance the remaining balance.

Interest on a home equity line of credit may be tax deductible. Please consult a tax advisor.

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