Loans & Lines
Home Equity Line of Credit
Burke & Herbert Bank Home Equity Line of Credit (HELOC)
When you have a borrowing need, look no further than your home. If the appraised value of your home is greater than the principal balance of your mortgage, your home may be able to provide you equity to borrow against. Imagine being able use the equity in your home to increase its value with a remodeling project, being able to save money by consolidating higher-interest loans into one lower-rate line of credit, or gaining the peace of mind that comes with having emergency funds for future use.
With a Burke & Herbert Bank Home Equity Line of Credit, you get the convenience of a readily available revolving line of credit at rates that are traditionally lower than personal loans and credit cards. What's more, a Burke & Herbert Bank Home Equity Line of Credit offers all of these great features and benefits:
- Flexibility of a 10-Year Draw Term with Competitive Rates and No Annual Fee
• Rates are based on Prime and size of the credit line.
• Flexibility to pay interest-only or principal plus interest each month.
- 15-Year Repayment Term
• After 10 years, any outstanding balance and interest automatically converts to the repayment term with fixed monthly payments over 15 years.
• Rates are based on Prime plus a margin, adjusted every five years.
- Bank-Paid Closing Costs up to $1,500*
Only the appraisal fee is collected up-front, and is refunded at closing.
- .25% Auto-Pay Discount
Lower your rate when payments are made automatically from a Burke & Herbert Bank checking account.
- Free HELOC-Specific Checks
Provides you with convenient direct access to the line.
- Convenient Access to Account Information
- Home Equity Line of Credit for Overdraft Protection
Eliminate the embarrassment and expense of overdrawing your checking account by attaching your Home Equity Line of Credit for Overdraft Protection. There's no fee to enroll and no transfer fees for advances (finance charges on advanced amounts apply).
Or to learn more and apply, please visit a local Burke & Herbert Bank branch or call us at 703-684-1655 and ask to speak with a Consumer Lending Officer.
*Bank-paid closing costs must be reimbursed if the HELOC is closed in less than 36 months.
Important Disclosure Information
The Home Equity Line of Credit described herein is offered only on primary residences and/or second homes located in Virginia, Maryland and the District of Columbia. Please ask for information on alternate products available for investment properties.
VARIABLE RATE FEATURE This line of credit has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly payment can change as a result. The annual percentage rate includes only interest and no other costs. The annual percentage rate is based on the value of an index. The index is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate and is published daily in the Wall Street Journal. To determine the annual percentage rate that will apply to your line of credit, we add a margin to the value of the index.
RATE CHANGES Except for the maximum ANNUAL PERCENTAGE RATE cap, there is no limit on the amount by which the rate can change in any one-year period. The maximum ANNUAL PERCENTAGE RATE that can apply to the line of credit during the draw period and repayment period is 21.000 percent or the maximum annual percentage rate allowed by applicable law, whichever is less. The minimum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 3.250 percent.
Draw Rate. During the draw period, the annual percentage rate may change each day. It will be based on the value of the Index described as the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate plus 1.000 percentage points. The annual percentage rate may increase if the Index rate increases. An Index rate increase will result in an increase in the interest portion of the finance charge and it may have the effect of increasing your monthly minimum payment. A decrease in the Index rate will have the opposite effect as an increase.
Repayment Rate. During the repayment period, the annual percentage rate may change every 60 months. It will be based on the value of the Index described as the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate plus 2.000 percentage points. The annual percentage rate may increase if the Index rate increases. An Index rate increase will result in an increase in the interest portion of the finance charge and it may have the effect of increasing your monthly minimum payment. A decrease in the Index rate will have the opposite effect as an increase.
The ANNUAL PERCENTAGE RATE (APR) effective as of 08/01/2016 is based on the line amount, and the current U.S. Prime Rate as published in the Wall Street Journal, as shown below, and is subject to change.
|As of 8/1/16||Draw Period||Repayment Period|
|$20,000-$49,999.99||Prime + 1.00%||4.50%||Prime + 2.00%||5.50%|
|$50,000-$99,999.99||Prime + .50%||4.00%||Prime + 1.50%||5.00%|
|$100,000 and up||Prime + .25%||3.75%||Prime + 1.25%||4.75%|
| Floor: 3.25%
*APRs are reduced by 0.25% with Auto-Pay from a Burke & Herbert Bank checking account
FEES AND CHARGES To open and maintain a line of credit, you must pay the following fees to us (See EARLY TERMINATION for fee(s) with **): Returned Check Charges: $35.00, Stop Payment: $30.00, Loan Processing: $300.00**. Note that some fees may only apply upon the occurrence of an event and have been provided for informational purposes only. Third Party Fees You must also pay certain fees to third parties, such as appraisers, credit reporting firms, and government agencies. These fees generally total $1,688.75. The following are an estimate of third party fees (See EARLY TERMINATION for fees with **): Abstract or Title Search: $150.00**, Appraisal: $450.00**, City/County Tax Stamps – Mortgage: $50.00**, Settlement: $450.00**, Credit Report: $23.75**, Flood Insurance Determination: $14.00**, Recording - Mortgage: $22.00**, State Tax Stamps – Mortgage: $35.00**, Tax Service: $94.00**, Title Insurance Binder: $125.00 **, Title Insurance: $150.00**, Title Examination: $125.00**. You must carry insurance on the property that secures the line of credit.
EARLY TERMINATION We may agree to advance some or all of the closing costs on your behalf at, before or after the time of settlement; however, we may require you to reimburse us for the closing costs advanced by us on your behalf. We may add this amount to your loan balance at the time of payoff, or if requested, you must pay us directly upon demand. A double asterisk (**) after the fee description and amount represents a closing cost that may be advanced by us on your behalf, and subject to reimbursement as described herein, which you agree shall be solely a reimbursement and not a penalty. This requirement to reimburse us for any closing costs advanced by us on your behalf shall be waived if you keep this line of credit open for at least three (3) years.