Fixed-Rate Loan Option (HELOC)
Here is an example of how a Fixed-Rate Loan Option works within your
Home Equity Line of Credit:
You open a $100,000 Home Equity Line of Credit with Bethpage.
You want to use $40,000 to start a kitchen renovation.
Using the Fixed-Rate Loan Option in your HELOC, you can lock that $40,000 in at a fixed rate for a fixed term, making your monthly payments stable and predictable.
The remaining $60,000 is still available for use with other expenses.
You might then decide to consolidate other bills, totaling $10,000. You can select a second Fixed-Rate Loan Option, locking in another fixed rate for another fixed term.
As you begin to pay back the principal on the $50,000 in your Fixed-Rate Loans, the amount available from your original $100,000 HELOC begins to grow again – there for you to use.
Whether you use it at closing or some time down the road, the Fixed-Rate Loan Option adds flexibility to your Bethpage Home Equity Line of Credit.