Capitalize
on Your Home's Equity
The equity that you've built in your home can
help you finance an education,
home
improvements, new cars, medical bills and
other major expenses.
Contact us to learn how you can leverage
the value of your home with a home equity
line of credit.
How a Home Equity Line Works
With a home equity line of credit, once the
value of your home
and its equity are
determined, you are approved for a specific
amount of credit.
By taking a percentage of the appraised value
of your home, such as 80 percent, and
subtracting the balance owed on the existing
mortgage, your
home equity credit line is
determined. Your equity calculation is the
maximum
amount you can borrow.
|
| For example: |
Appraisal of home |
$300,000 |
| Percentage |
x80% |
| Percentage of appraised value |
$240,000 |
| Less mortgage debt |
-$150,000 |
| Potential credit line |
$90,000 |
|
This example does not necessarily reflect Mercantile Bank's
current underwriting policies. In determining your actual credit line, the lender
will also consider your ability to repay by looking at your income, debts and
other financial obligations, as well as your credit history. Home equity lines
often set a fixed time during which you can borrow money, such as 10 years.
Once approved for a home equity line, you will be able to borrow up to your
credit limit whenever you want. Typically, you will draw on your line using
special checks.
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Prime
for Life Minus ½%
No Points • No annual fee • No closing cost** |
Effective rate as
of October 30, 2008 |
| Home Equity Line of Credit |
| Program |
Interest Rate |
APR |
| Home Equity Line of Credit |
4.00% |
4.00% |
| **Annual Percentage Rate (APR) based on
the Prime Rate as published in the Wall Street Journal on the last business
day of the month-less ½ of 1%. The note rate changes on the first day of the calendar
month. (This rate may increase or decrease monthly.) The maximum APR is
18% during the life of the line of credit. The minimum APR is 4.50% during the life of the line of credit. Line amounts from $100,000
for one-four family primary residences or second homes within Massachusetts.
(80% combined loan to value ration using municipal tax assessment or appraised.
If appraisel is needed, customer pays the fee.) A cancellation fee may
apply if line is terminated within two years of origination date. Other
restrictions may apply. The Prime Rate as listed in the Wall Street Journal (WSJP) as of the effective date of 10/30/08 was 4.00%. |
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Stop by one of our neighborhood offices, contact
us or call us at 617.247.2800 to talk with one of our representatives.
Other Mercantile
Bank Services
With Mercantile Bank savings and investment accounts, you may also want to
consider the benefits of our other financial services:
• Personal checking
• Savings and investments
• Consumer loans
• Online banking
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