Basics
What is a HELOC?
Revolving line of credit that allows homeowners to borrow against the equity of their home
What is our current HELOC promotional rate?
5.49%APR
How long is the draw period?
10 years
What does HELOC stand for?
Home Equity Line of Credit
What is the origination fee for a HELOC?
There is none!
Who can apply for a HELOC?
Anyone that owns their own home, subject to application review
How should you verbally quote the current HELOC rate to a client?
5.49% Annual Percentage Rate
(say the full phrase at least once in the interaction prior to stating "APR")
How long is the repayment period?
20 years
What is equity?
The amount of the home you already own (what you are no longer paying the bank)
What is the annual fee for maintaining the account?
There is no annual fee!
When is the best time to apply for a HELOC
As soon as you have built equity up in your home
For our HELOC promo, is it a variable or fixed interest rate?
What type of payments are required during the draw period?
Interest only
What is a draw period?
Timeframe where a client can borrow against their HELOC up to their limit
How much will OZK cover in closing costs?
$1600
What is used as collateral for the line of credit?
Primary or Secondary Home
What is the base rate dependent on?
WSJ (Wall Street Journal) + Margins
How much can the client borrow during the draw period?
Their available credit limit
What is the repayment period?
Client can only pay back what is owed. Balance owed will be split into equal payments for 20 years
What lien position will OZK take? (both primary and secondary)
1st or 2nd on a primary
1st on secondary
What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
A home equity loan is a lump-sum loan while a HELOC is a revolving line of credit.
What rate can a non-lender quote to clients regarding the HELOC promotion?
Only the advertised promotional rate. All other rates should be discussed between lender/borrower.
How can a client conduct an advance on their HELOC?
What is a clawback?
When the client closes their HELOC before 3 years, they will be subject to paying back the closing costs.
What is the highest loan to value % that OZK will offer when we are in 1st position?
85%