Personal Banking - Loans
Home Equity Line of Credit
A Home Equity Line of Credit is a revolving line of credit that allows you to borrow as you need it and the interest may be tax deductible.** For qualified borrowers, a Home Equity Line of Credit lets you put the equity in your home to work - the line of credit is secured with a second mortgage on your home. For example:
Your home is worth: $80,000
You owe: $30,000 on your mortgage
Your equity is: $50,000
With a Lake City Bank Home Equity Line of Credit, you can use the equity in your home for improvements, debt consolidation, major purchases, college tuition or whatever need you have.
With competitive rates, low minimum monthly payments, and lines up to 85% of your home's value, we have a variety of home equity options to meet your borrowing requirements.
- Anyone who owns their own home may apply
- A primary residence, condominium or second residence can qualify (mobile homes do not qualify)
- No closing costs or prepayment penalty
- Money borrowed can be used for any legal purpose—home improvement, vehicle purchase, education or debt consolidation
- Borrow as much or as little of the line as you like
- Pay interest only on what you borrow
Of course, the above features are common to almost all home equity lines, but Lake City Bank offers much more...
Fixed Rate Locks
Home equity lines usually offer a variable rate. With the Home Equity Line of Credit at Lake City Bank, you can lock in a rate on all or a portion of your current principal. Here’s how it works:
It’s almost like splitting one loan into two, three or four different loans. One loan (your original line of credit) has a variable interest rate; the other loans have a fixed interest rate.
Say you have a $25,000 limit on your Lake City Bank Home Equity Line of Credit and your current balance is $10,000. When interest rates are low, you can lock in an attractive interest rate on that $10,000 principal for a 5-20 year term. The remaining $15,000 of the Home Equity Line is still available to be borrowed at the normal variable interest rate. Borrow $3,000 from that $15,000 at the variable rate, and you can still borrow up to $12,000 more.
This is only one example. The specific amounts will depend on your situation and your preference. The minimum principal balance required to fix the rate on a portion of the principal is $5,000 (accumulative maximum of $200,000). You can have up to three open or active Rate Locks.
*Subject to credit approval.
**Consult your tax advisor concerning deductibility of interest.