HELOC-specific disclosures

We have HELOC-specific disclosures (abbreviated here) in our Loans experience for the consumer:

Home Equity Line of Credit (HELOC)

We are not a lender or correspondent lender. We do not make mortgage loans or commitments or take applications and cannot guarantee acceptance into any particular loan program by any Lender, or specific loan terms or conditions. We do not act as an agent or advisor to you or any financial service provider. We do not take applications, make loans or credit decisions in connection with loans, issue commitments or lock-in agreements, or fund loans. Our services are purely administrative. Any loan may be co-brokered but not in South Carolina. This does not create an exclusive relationship and remains in effect only as long as you seek to use our services. You may discontinue this relationship at any time, without notice, at no cost or penalty to you.

Any loan request you submit is NOT an application for credit. Rather, it is a request to be matched with prospective third-party lenders to receive conditional loan offers from those lenders. Any lender will require you to submit a loan application to them for their consideration before extending an offer. We do not issue loan approvals, loan commitments, or make any guarantees on behalf of any lender. We do not connect you with every lender in the market, so other lenders and loans not listed on our service may be available to you, and those other loans may have different terms and conditions, including lower rates. We cannot guarantee the lowest price or best terms available in the market. We do not endorse or recommend particular lenders or products. Your personal financial situation is unique, and it is your responsibility to evaluate the information and content provided, before making any financial decisions.

The lenders are solely responsible for their services to you, and you agree that we will not be liable for any damages or costs of any type arising out of or in any way connected with your use of such services. You understand that lenders may keep your loan request information and any other information provided by us or received by them in the processing of your loan request, whether or not you are qualified for a loan with them or obtain a loan from them. If your loan request is forwarded to a prospective lender that makes you an offer, you should receive from the lender a disclosure, sometimes referred to as a good faith estimate (GFE) of the settlement costs of your loan, and now generally referred to as a Loan Estimate form as required by the TILA-RESPA Integrated Disclosure Act. The disclosure sets forth the various loan terms and costs involved, such as a credit report fee, property appraisal fee, or other third-party fees in connection with your loan.

The interest rate quoted in connection with the loan you select is subject to change without notice, unless and until an interest rate lock-in agreement has been entered into between you and the lender. We do not offer interest rate lock-in agreements and do not guarantee any interest rate quoted by a participating lender. If you enter a lock-in agreement with the lender and are required to pay an interest rate lock-in fee, the terms and conditions under which the interest rate lock-in fee may be refunded, if any, will be set by the lender. The documentation you receive will include the information or terms and conditions on the refundability of any fees paid. We do not offer or provide any refund on behalf of any lender.

We support the principles of the federal Equal Credit Opportunity Act (the “ECOA”). We do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to contract), the fact that all or part of the applicant’s income derives from a public assistance program, or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. Similarly, we are committed to compliance with any applicable state and local anti-discrimination laws. Under the ECOA, you are entitled to receive a copy of any appraisal.

If your home value is higher than your outstanding mortgage balance(s) you may be able to borrow against the portion of equity available in your home. A HELOC is a financial product that takes a security interest in your home using a credit line. Typically, HELOCs are broken down into two distinct phases. A draw period and repayment period.

During the draw period, homeowners can borrow as much as they’d like within the credit line amount. Usually, interest-only payments are allowed on the amount drawn. You may also pay back the amount borrowed and the line is replenished. Once the draw period ends, you can no longer withdraw money from the line and the borrower must pay off the principal amount of the HELOC, with interest. The length of these terms and product offerings will vary by lender and each individual situation. When a HELOC has a variable rate, your interest rate may go up or down in relation to an index, economic conditions, and rate restrictions provided by the lender. Some HELOCs may be subject to interest rate adjustment caps which means that there is a maximum your interest rate may go up or down for a set period (i.e. 6 months or 1 year) and for the life of the loan. Example: A Variable Rate HELOC with interest rate caps of 2% for the first year and 1% each year afterward for the life of the loan.

Rates and terms may change at any time and will be subject to property type, loan amount, credit history, lien position, loan-to-value (LTV) ratio, debt-to-income (DTI) ratio, FICO score and draw amount at closing. Rates are subject to change daily and minimum line amounts may apply. All accounts are subject to individual lender approval. Any minimum periodic payments stated by a lender may result in a balloon payment if only the minimum is made. The amount and timing of the balloon payment is at the discretion of the lender. Please evaluate all terms prior to making any financial decision.

Other helpful information is available here: http://files.consumerfinance.gov/f/201204_CFPB_HELOC-brochure.pdf

HELOC Example Home value $300,000 $300,000 x 80% = $240,000 You owe $100,000 on your first mortgage: $240,000 – $100,000 = $140,000

In the above scenario, assuming your lender caps the maximum loan-to-value ratio of 80%, you could potentially qualify for a HELOC with a maximum credit line of $140,000.