If you own your home, you’re eligible to apply for a home equity line of credit. We’ll evaluate certain criteria to determine if you qualify, such as your credit history, employment, income and the amount you wish to borrow. Another key factor is your home’s Loan-To-Value ratio (LTV), which is the relationship between your current mortgage balance and the value of your home.
Contact Us and a home lending specialist will follow up with you to discuss your options.
The amount of credit you qualify for depends on the market value of your home, current mortgage balance, credit history and other criteria.
For example, let’s say your home is worth $500,000. How much you can borrow starts with 75% of that value, or $375,000. Next, subtract your mortgage balance from $375,000. So, if you currently owe $250,000 on your mortgage, then $375,000 less $250,000 means you have $125,000 in home equity that you can borrow against.
To estimate how much you may be able to borrow, Contact Us and a home lending specialist will follow up with you to discuss your options.
Rates are dependent upon your credit history and your home’s Loan-To-Value ratio (LTV), which is the relationship between your current mortgage balance and the value of your home. Loan to value is determined by your current mortgage balance in relation to how much your property is worth.
Automatically deducting your payments from your Bethpage checking or savings account will help you get the best interest rate.
Contact Us to learn more about how to get the best rate.
On average it takes 4 to 6 weeks from the date of your application to close on your HELOC. Some loans may close faster. You can minimize the length of time as much as possible, by providing all required supporting documents up front -- such as proof of income, homeowners insurance, etc.
The documentation you will need to obtain a Home Equity Line of Credit includes:
- Most recent pay stubs covering the last 30-day period
- Past two years of W-2 Forms from all employers (current & previous)
- 2 most recent bank statements (all pages). Include all accounts used for transaction
- Past 2 years of Federal Tax returns (1040 Form) with all pages and schedules (if applicable, self-employed/rental income/retirement income)
As you go through the process, additional documentation may be needed.
During the 10-year draw period, which is the amount of time when you’re allowed to borrow against your line of credit, you’ll be making payments every month based only on the interest due on the variable amount you’ve borrowed. If you convert any available funds to the fixed rate loan option, your repayment terms for the fixed rate portion will include principal and interest payments for the term you select.
Once the draw period ends, you’ll be required to repay any outstanding HELOC variable-rate balance loan with monthly principal and interest payments over a 20-year term.
Are there closing costs or other fees a home equity line of credit?
If you’re taking out a HELOC of less than $500,000 there are no closing costs or additional fees. If you’re taking out a HELOC greater than $500,000, mortgage tax and title insurance fees apply.
Loan amounts over $500,000 may be available on a case-by-case basis to qualified applicants, are not eligible for the discounted introductory rate at any time, and the borrower(s) will be responsible for mortgage tax and title insurance costs on the loan value portion over $500,000. Closing costs for the first $500,000 will be paid by Bethpage, but must be repaid by the borrower(s) if line is closed within first 36 months.
Do I need an appraisal?
Whether-or-not an appraisal will be required is dependent upon the amount of your HELOC and your home’s Loan-To-Value ratio (LTV), loan to value is determined by your current mortgage balance in relation to how much your property is worth.
Your Bethpage Lending Representative will let you know if an appraisal is required during the lending process.
Please note that homes located outside of the Long Island, NY area require appraisals, as do condominiums whether within or outside of Long Island.
Is it better to refinance my mortgage or get a HELOC?
There are several factors including whether-or-not you qualify for a HELOC at an interest rate lower than your current mortgage rate, and your reasons for wanting the loan or line of credit to start with.
Contact Us to learn more about your best option.
Is HELOC interest tax deductible?
Situations vary, so please talk to your tax accountant about whether-or-not your HELOC will be tax deductible.
Does Bethpage offer a home equity loan?
When you have a home equity line of credit with Bethpage,
You may convert all or a portion of your outstanding HELOC variable-rate balance to a Fixed-Rate Loan Option, resulting in fixed monthly payments at a fixed interest rate. The minimum outstanding balance that can be converted into a Fixed-Rate Loan Option is $10,000 from an existing HELOC account. The minimum loan term is 5 years, and the maximum term will not exceed the account maturity date. No more than three (3) Fixed-Rate Loan Options may be open at one time. Rates for the Fixed-Rate Loan Option are typically higher than variable rates on the HELOC.
Bethpage doesn’t offer standalone home equity loans that are not part of a home equity line of credit.