What is the difference between Home Equity Loan and Home Equity Line of Credit?
A Home Equity Line of Credit works very much like a credit card. You are allowed to borrow up to a certain amount for the life of the loan in a time limit set by Freedom First. Home Equity Line of Credit rates are set based on the Prime Rate. A Home Equity Loan is an amount set when you apply and the funds are distributed all at once and you must pay the amount back. The loan is very much like a vehicle loan.

Do I need to get a home appraisal?
As part of the application process, an appraisal may be required to determine the value of your home.

How fast will I get my money?
The application process varies with many different factors. Please have all your paperwork ready when applying for a faster process.

What is the difference between interest and APR?
Interest refers to the annual cost of a loan to a borrower and is expressed as a percentage. The APR is the annual cost of a loan to a borrower, including fees.

How do I figure out how much equity I have available to me in my loan?
You can access your equity line by going to Freedom First Online Banking or by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free). If you want to estimate how much equity may be in your home prior to applying, use our Home Equity Line of Credit calculator.

What is LTV and why is it important?
The acronym LTV means "Loan to Value." This will determine if you qualify for a home equity loan or line of credit and it also will determine the amount of the loan possible.

What are benefits of using home equity?
You may potentially get a lower rate because the loan or line of credit is secured by your home's equity. You may also be eligible for a tax deduction; consult a tax advisor to see if you qualify.

How do I find out my home’s value?
An appraisal is the best option to determine your home's value.

Is the interest I pay tax deductible?
There may also be tax deductions - talk to a tax advisor to see if you qualify.

Do I need perfect credit?
No. We give Home Equity secured loans to a wide variety of credit applicants.

How do you decide if I qualify?
Our underwriting professionals make the determination on many factors.

What will my rate be?
Your rate will depend on your creditworthiness.

Home Equity Line of Credit (HELOC)

How do I order checks for my Home Equity Line of Credit?
You are provided with convenience checks after the loan has been funded. To request additional checks, please call our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visit a branch.

Can I request an increase in my Home Equity Line of Credit?
In order to increase your Home Equity Line of Credit limit, you would need to apply for a new loan by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visiting a branch.

How many months will I have access to my available credit with my Home Equity Line of Credit?
You will be able to make advances from your Home Equity Line of Credit for 120 months (10 years).

What is the Prime Rate?
The Prime Rate is based on the federal funds rate, which is set by the Federal Reserve and is among the most widely used benchmark in setting rates for home equity lines of credit.

What does end of draw mean with a Home Equity Line of Credit, and what happens?
The draw period (or advance period) for the Home Equity Line of Credit is 120 months (10 years). Once that period ends, the loan will enter repayment. In the repayment period, payments will consist of principal and interest payments amortized over the remaining 120 months (10 years).

How far in advance should I prepare for end of draw for my Home Equity Line of Credit?
If you are at the end of the draw period but like the convenience of having access to the Home Equity Line of Credit, you would need to apply for a new loan by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visiting a branch.

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