Fixed Rate
A simple way to explain a fixed home equity (what can it be compared to?)
Like a car loan payment- set payment/amount & Term - you pay principal +Interest payments to it pay the loan down entirely by the end of the chosen term.
What is a simple way to explain a HELOC? What is it comparable to?
A HELOC is like a Credit Card, you are only required to pay the interest. Just like a credit card it is a revolving line, meaning you can pay it down and use again and again during the draw period.
What is the current Home Equity promo/s?
HELOC Promo- 6 Month at 5.99% then prime rate thereafter. HELOC CRA Promo- up to 150k 4.99% for the first 36 months and then prime. HELOC CRA 5.49% for 36 months and then prime. HELOAN CRA max amount 150k 5.99% for 15 years
What conversation could prompt us to recommend a Home Equity to a customer?
mentioning any of the following: Upcoming Home Improvement, Need for debt consolidation, worried about being prepared for emergencies, upcoming purchases, would like to purchase a secondary property, starting a business, kids starting school soon, ANYONE THAT OWNS A HOME.
What is the lowest term we offer?
120 Months (10 years)
What is the term offered for a HELOC and what is the draw period and the repayment period?
300 Months total (10-year draw/15-year repayment following) total of 25 years
What is the Max Household income to qualify for any of the CRA Promos?
$90,500.00
What are the minimum and maximum loan amounts for SB Term Loan and SB Revolving Line
Min. 10k Max 100k
What is the highest term we offer?
180 months (15 years)
What is the minimum amount we will lend for a HELOC?
20K.
A borrower received a mailing from their family member and wants to apply for a CRA Promo on their property in CT. How do you proceed?
The CRA promo is only for RI properties
What can you compare the SB Term Loan and the SB Revolving Line of Credit to?
The Loan is comparable to a fixed HELOAN (pay both P&I with set payment) The Line of Credit is comparable to a HELOC (pay interest only payments on a revolving line)
What lien positions will BankNewport take for a HELOAN?
1st & 2nd only
What is the pre-payment penalty and time frame for a HELOC? Bonus: When does this apply?
2% of the payoff amount withing the first 12 months (only if paying off and closing the line)
What are some reasons a person would want a Home Equity
Home Improvements, purchase a secondary property, Available Credit, Emergency funds, pay for children's education, any reason that they may want easy access to funds.
What can the purpose be for the SB Term Loan & SB LOC?
SB Loan- One-time purchases (new or used equipment, renovations, debt consolidation) SB LOC- Short term, recurring needs (cash flow gaps, inventory, payroll), Working Capital.
A borrower has a mortgage on their investment property, and they would like to open a HELOAN with BankNewport, while keeping their current mortgage where it is- How do you proceed? Bonus: What is the LTV for a HELOAN on an investment property?
We would not be able to proceed unless they would like to refinance their 1st mortgage with BankNewport (1st lien is a requirement for investment properties unless 1st is with BN) Bonus: 1 unit 75% LTV 2-4 Unit 70% LTV
How many units can an investment property have to qualify for a HELOC? and what is the LTV?
1 unit and condos 75% LTV, 2-4 Unit 70% LTV
What fees would someone pay at closing, when taking out a Home Equity on an Investment property that they wouldn't pay on owner occupied?
Standard work fees- Title search, appraisal, flood determination, credit report and recording fees.
What is the paydown provision on the SB Line of Credit and does the SB Term Loan also have a provision? Bonus: Give an example of what this means
A "clean-out" provision will require a paydown of 50% of the highest usury balance over the pervious 12 months for a minimum of 30 days Bonus: example of monthly amounts and which would be required to be paid down after a year i.e Jan 10k, March 40k, July 20k- Balance requirement after a year would be 20k or under for 30 consecutive days.