Loans & Lines
Home Equity Line of Credit
Special Limited-Time Introductory Rate – Apply by September 30
Rates Are Better Here
If you're a home owner, now is a great time to take advantage of a Home Equity Line of Credit. With our special summer deal, you can use the equity in your home to borrow at some of the lowest rates anywhere, with a Burke & Herbert Bank Home Equity Line of Credit!
For the first year, your rate will be fixed at a low 4.50% APR – one of the lowest introductory home equity rates currently available. After that, you'll still enjoy a great variable rate based on the Prime Rate and the size of your credit line, with a 0.25% discount if you arrange auto-payments from your Burke & Herbert Bank checking account.
With great rates like these, you'll pay less to finance the things that matter most, like renovating your kitchen, paying for college, buying a car, or even managing unexpected expenses. Plus, you pay interest only on what you borrow, and you can pay off your line anytime, without penalty.
Limited-Time Offer – Act Now!
Apply by September 30, 2019 to take advantage of this special introductory home equity rate.
* Rate with auto-pay from a Burke & Herbert Bank checking account. Promotional rate will be in effect for 365 days. See additional details about terms and conditions on the back of this brochure.
† The U.S. Prime Rate is 5.50% as of 7/1/2019.
Home Equity Line of Credit
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
The limited-time offer is available on new Home Equity Lines of Credit only and applies to applications completed between July 1 and September 30, 2019, and closed by November 30, 2019. The Introductory Annual Percentage Rate (APR) is fixed at 4.50% for the first 365 days from the agreement date (Promotional Period) and requires the maintenance of automatic payment (auto-pay) from a Burke & Herbert Bank checking account. Without auto-pay in effect, your APR will be increased to 4.75% for the remainder of the Promotional Period. 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. 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 of 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 of an increase.
Except for the Introductory 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 5.50% as of 7/1/19. Rates are subject to change.
The auto-pay discount is not reflected in the APRs stated 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 for fee(s) with **): Loan Processing: $300.00**, Returned Check Charges: $35.00, Stop Payment: $30.00. 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**, Title Insurance: $435.00**.
You must carry insurance on the property that secures the line of credit. 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.
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; 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