Loans & Lines
Home Equity Line of Credit
Burke & Herbert Bank Home Equity Line of Credit (HELOC)
When you have a borrowing need, look no further than your home. If the appraised value of your home is greater than the principal balance of your mortgage, your home may be able to provide you equity to borrow against. Imagine being able use the equity in your home to increase its value with a remodeling project or to finance important needs and goals such as paying for tuition, buying a car, or even taking a dream vacation.
With a Burke & Herbert Bank Home Equity Line of Credit, you get the convenience of a readily available revolving line of credit at rates that are traditionally lower than personal loans and credit cards. What's more, a Burke & Herbert Bank Home Equity Line of Credit offers all of these great features and benefits:
- Highly-Competitive Pricing
Enjoy a low fixed introductory annual percentage rate (APR) of Prime minus 1.00% (currently 2.25% APR*) for the first 12 months when you advance $20,000 or more at closing and maintain that balance for at least 6 months. (Without auto-pay, the introductory rate is Prime minus .75%; currently 2.50% APR*.)
Following the introductory rate period, rates are variable based on Prime and the size of the credit line, with lower rates on higher lines. The current variable rate on a line of $100,000 or more is 3.25% APR (3.50% APR without auto-pay*).
.25% auto-pay discount when payments are made automatically from a Burke & Herbert Bank checking account.
Low $50 annual fee.
Bank-paid closing costs up to $1,500** excluding the appraisal fee which is collected upfront.
- Flexibility of a 10-Year Draw Term
Access funds up to your available credit limit anytime you wish during the draw term.
Flexibility to pay interest-only or principal plus interest each month.
- Convenient 15-Year Repayment Term
After 10 years, any outstanding balance and interest automatically convert to the repayment term with fixed monthly payments over 15 years.
Rates are based on Prime plus a margin, adjusted every 5 years.
- Free Home Equity Line of Credit Checks
Provides you with convenient direct access to the line.
- Convenient Access to Account Information
- Home Equity Line of Credit for Overdraft Protection
Eliminate embarrassment and expense of overdrawing your checking account by attaching your line of credit for overdraft protection. Funds will be transferred automatically to your checking account when needed. There are no fees for advances; (finance charges on advanced amounts apply).
Or to learn more and apply, please visit a local Burke & Herbert Bank branch or call us at 703-684-1655 and ask to speak with a Consumer Lending Officer.
*The U.S. Prime rate is 3.25% as of 3/17/2020.
**Bank-paid closing costs must be reimbursed if the HELOC is closed in less than 36 months.
Important Disclosure Information
The Home Equity Line of Credit described herein is offered only on primary residences and/or second homes located in Virginia, Maryland and the District of Columbia. Please ask for information on alternate products available for investment properties.
TERMS AND CONDITIONS FOR INTRODUCTORY FIXED-RATE OFFER
This introductory fixed-rate offer is available on new Home Equity Lines of Credit only. The Introductory Annual Percentage Rate (APR) is fixed at a rate equal to the current U.S. Prime Rate as published in the Wall Street Journal minus 1.00% (currently 2.25% APR) for the first 365 days from the agreement date (Promotional Period), when you advance $20,000 or more at closing, maintain a balance of $20,000 or more for at least 6 months and maintain automatic payment (auto-pay) from a Burke & Herbert Bank checking account. Without auto-pay in effect, your APR will be Prime minus .75% (currently 2.50% APR). At the conclusion of the Promotional Period, the line of credit has a variable rate as described below.
VARIABLE-RATE FEATURE (except for fixed-rate Introductory APR during the Promotional Period)
This line of credit has a variable rate feature and the APR (corresponding to the periodic rate) and the minimum monthly payment can change as a result. The APR includes only interest and no other costs. The APR is based on the value of an Index. The Index is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate and is published daily in the Wall Street Journal. To determine the APR that will apply to your line of credit, we add a margin to the value of the Index. Ask us for the current Index value, margin, and APR. After you open a line of credit, rate information will be provided on periodic statements that we send you.
RATE CHANGES Except for the Introductory APR in effect during the Promotional Period and the maximum APR cap, there is no limit on the amount by which the rate can change in any one-year period. The maximum APR that can apply to the line of credit during the draw period and repayment period is 21.000% or the maximum APR allowed by applicable law, whichever is less. Except for any Promotional Interest Period, the minimum APR that can apply during the line of credit is 3.25%.
DRAW RATE During the draw period, the APR may change each day. It will be based on the value of the Index described as the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate plus 1.000 percentage points. The APR may increase if the Index rate increases. An Index rate increase will result in an increase in the interest portion of the finance charge and it may have the effect of increasing your monthly minimum payment. A decrease in the Index rate will have the opposite effect as an increase.
REPAYMENT RATE During the repayment period, the APR may change every 60 months. It will be based on the value of the Index described as the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate plus 2.000 percentage points. The APR may increase if the Index rate increases. An Index rate increase will result in an increase in the interest portion of the finance charge and it may have the effect of increasing your monthly minimum payment. A decrease in the Index rate will have the opposite effect as an increase.
Except for the Introductory Annual Percentage Rate (APR) in effect during the Promotional Period, the APR is based on the line amount, and the current U.S. Prime Rate as published in the Wall Street Journal, which is 3.25% as of 3/17/2020. Rates subject to change.
The Auto-Pay discount is not reflected in the APRs shown in the table above.
FEES AND CHARGES To open and maintain a line of credit, you must pay the following fees to us (See EARLY TERMINATION **): Loan Processing: $300.00**; Annual Fee: $50.00, beginning on the date you enter into an agreement for a line of credit and annually thereafter on the anniversary of that date for the term of the agreement; Returned Check Charges: $36.00; Stop Payment: $35.00; Late Charge: If payment is more than 10 days late, 5% of unpaid portion of payment (only imposed once for each late payment). Note that some fees may only apply upon the occurrence of an event and have been provided for informational purposes only.
THIRD-PARTY FEES You must also pay certain fees to third parties, such as appraisers, credit reporting firms, and government agencies. These fees generally total $2,108.98. The following are estimates of third party fees based on a credit line of $150,000.01. Your fees may vary based on the amount of the line of credit. (See EARLY TERMINATION for fees with **): Abstract or Title Search: $125.00**, Appraisal: $525.00, City/County Tax Stamps – Mortgage: $126.00**, Settlement: $325.00**, Credit Report: $24.98**, Flood Insurance Determination: $14.00**, Recording – Mortgage: $42.00**, State Tax Stamps – Mortgage: $378.00**, Tax Service: $94.00**, Closing Protection Letter: $20.00**, Title Insurance: $435.00**. In addition, if allowed by applicable law, you agree to pay the costs of recording the release or satisfaction of the security instrument, which shall or may be added to the payoff amount. You must carry insurance on the property that secures the line of credit.
EARLY TERMINATION We may agree to advance some or all of the closing costs on your behalf at, before or after the time of settlement (except that the cost of any appraisal will not be advanced by us on your behalf before settlement). However, we may require you to reimburse us for the closing costs advanced by us on your behalf. We may add this amount to your loan balance at the time of payoff, or if requested, you must pay us directly upon demand. A double asterisk (**) after the fee description and amount represents a closing cost that may be advanced by us on your behalf, and subject to reimbursement as described herein, which you agree shall be solely a reimbursement and not a penalty. This requirement to reimburse us for any closing costs advanced by us on your behalf shall be waived if you keep this line of credit open for at least three (3) years.
Subject to Credit Approval.