What is a home equity line of credit?
A home equity line of credit, or HELOC, is a revolving credit line. It’s secured by the equity you’ve built in your home and can be used as needed. You only pay interest on what you draw from your HELOC for the first 10 years.*
(As low as) 5.00% APR+1
(As low as) 7.00% APR+2
|Initial Introductory Discount APR
For First 6 Months
Prime +0.00% After 6 Months
Rates above are based on a $200,000 line amount. At 5.00% APR¹ the interest only payment would be $821.92 for the first 6 months. At 7.00% APR² the interest only payment would be $1,150.68 after the expiration of the initial introductory discount. Rates are subject to change without notice.
With a Home Equity Line of Credit, you can...
- Have direct access to money through Online Banking or special checks
- Make interest only payments on the principal balance for the first 10 years
Member FDIC. Equal Housing Lender. Berkshire Bank NMLS 506896
*HELOC Terms: HELOC has a term of 20 years; 10-year draw period with interest only monthly payments followed by a 10-year monthly principal and interest repayment period. The Annual Percentage Rate (APR) is a variable rate based on the Index plus a Margin. The Index is the Prime Rate as found in the Money Rate section of The Wall Street Journal and is floating during the life of the loan. The minimum APR will never go below 3.25% and will never exceed 18.00%. The Prime Rate (Index) as of 11/2/22 is 7.00%.
1Initial Introductory Discount APR
An initial discount of 2.0% is applied to the APR determined at closing by adding a margin to the value of the Index. The fixed introductory discount is in effect for 6-months beginning on the Agreement Date. The stated Initial Introductory Discount APR is based on a line amount of $200,000, property state of Massachusetts, CLTV of 80%, 740 qualifying credit score, 1-unit property, and in second lien position. An additional 0.25% discount is applied to the margin when an automatic payment for the HELOC is setup from a personal Berkshire Bank checking account. Set up of an automatic payment is not required to receive an introductory discount. Rates are subject to change without notice.
The Variable APR is determined by adding a margin to the value of the Index and goes into effect after the Initial Introductory APR expires. The Margin is determined on factors that can change throughout your application process such as loan amount, property state, combined loan to value, credit score, number of units, and lien position. The stated Variable APR is based on a line amount of $200,000, property state of Massachusetts, CLTV of 80%, 740 qualifying credit score, 1-unit property, and second lien position. An additional 0.25% discount is applied to the margin when an automatic payment for the HELOC is setup from a personal Berkshire Bank checking account.Rates are subject to change without notice.
HELOC Account Fees: An annual fee of $50, which is waived for the first year; stop payment fee of $25.
Closing Costs: The Bank pays standard fees. Exception: $75 appraisal upgrade fee for drive-by to a full appraisal -OR- the cost of a full appraisal when the Bank has an eligible AVM. Estimated sum of all charges incurred may range from $75 to $3,000.
Recapture Fee: If the account is paid off and closed within 36 months of the Agreement Date, the
Bank will recapture the bona fide third party charges paid by the lender in connection with the transaction. This is not a prepayment penalty. NEW YORK STATE PROPERTIES: Recapture Fee includes lender paid
closing costs up to $500 together with the borrower’s percentage of mortgage tax paid by the Bank on their behalf. PROPERTIES IN OTHER STATES: Recapture Fee includes bank paid closing costs up to $500.
Homeowners insurance is required. Flood insurance may be required.