Home Equity Line of Credit Rates

Home Equity Line of Credit (HELOC) with a Combined-Loan-to-Value of 80% or Less

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Type	APR*	Rate Parameters
10-Year Draw Period, followed by 15-Year Repayment Period	8.00%	Rate based on current prime rate minus a margin of 0.50% with a floor rate of 3.25%.

*Annual Percentage Rate (APR): Variable rate which is adjusted monthly based on the Prime Rate as published in the Wall Street Journal minus a margin of 0.50%. Minimum APR is 3.25% with a maximum APR of 18.00%. Rate quoted is for owner occupied 1-4 family properties, owner occupied residential condominiums and second homes with a maximum CLTV of 80% of the appraised value.

Fixed Rate Advance Loans with a Combined-Loan-to-Value of 80% or Less

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You can convert all or portion of your balance to a Fixed Rate during the term of the draw period. A maximum of three (3) Fixed Rate Advances are allowed at one time.

Prime Rate as of:

7/27/2023

8.50%

The Cornerstone Bank Home Equity Line of Credit (HELOC) product has a variable periodic rate. Payment plans are 10 years interest only with a minimum monthly payment of $50.00 during the draw period, followed by 15-year repayment period of principal and interest payments. An early termination fee of $500.00 will be assessed at the time of payoff if the line of credit is closed within 36 months of the date of the Note. Property insurance is required.

The Home Equity Line of Credit product has a maximum Combined-Loan-to-Value (CLTV) ratio of 80% with an interest rate based on prime rate minus a margin of 0.50%. The minimum credit limit you can apply for is $10,000 with a maximum line amount of $350,000. Existing Cornerstone Bank Home Equity Line of Credit customers must apply for and be approved for an increase in their current line by at least $10,000 to qualify.  Lines from $10,000 to $250,000 have a maximum CLTV ratio of 80%. Lines from $250,001 to $350,000 have a maximum CLTV ratio of 70%. Chapter 61 properties have a maximum CLTV ratio of 70%. For loan requests below $250,000, the Bank will use its standard method to determine the value at no cost. You have the option to pay for a full appraisal if you choose to. Full appraisals are also required at borrower’s expense for line amounts exceeding $250,000, and for properties with two to four units, or over 10 acres of land or held in Chapter 61, 61A or 61B, fee refundable upon closing. Appraisal fees range from $500 to $690 depending on the type of property. The fee may be forfeited on withdrawn or denied applications.

For loan requests less than $250,000, the standard closing and recording costs will be paid by the Bank. You are responsible to pay for any additional fees above the standard closing costs, including but not limited to, Trust reviews and recording, deed preparation and recording. You are also responsible to pay for all closing costs for loan requests equal to or greater than $250,000. Standard closing and recording costs will range from $0.00 to $1,560 and will vary based on the line amount requested.

Loan offer is subject to credit approval and other terms and conditions apply. Consult a tax advisor regarding the deductibility of interest. This offer may be withdrawn at any time. Rate is effective as of [Today’s Date] and is subject to change.