Home Equity Line of Credit (HELOC)

Home Equity Loans are designed to help you use the equity in your home to cover unforeseen needs such as a large home repair as well as planned occurrences such as home improvements, major celebrations, education, and more.

These loans are designed to give you flexibility and low rates. With interest only payments on the current outstanding balance for the first 10 years – this is known as the “draw period”. The loan is then designed for you to pay the loan off during the next 10-year period known as the “pay down period”.

Additionally, at the end of the “draw period” and just before the “pay down period” you will have the option to switch your rate from a floating rate to a fixed rate loan, so you will know exactly what you need to pay every month.

HOME EQUITY LINE OF CREDIT RATES FOR LOANS UP TO 80% COMBINED LOAN TO VALUE

Loan AmountVariable Interest Rate* (APR)Floor (APR)
$10,000 - $49,999Prime Rate +.99% to Prime Rate + 1.74%4.25%
$50,000 - $99,999Prime Rate +.49% to Prime Rate + 1.24%4.00%
$100,000 +Prime Rate -.25% to Prime Rate + 0.50%3.50%
Subject to change at any given time.

HOME EQUITY LINE OF CREDIT RATES FOR LOANS BETWEEN 80.01% AND 100% COMBINED LOAN TO VALUE

Loan AmountVARIABLE INTEREST RATE* (APR)FLOOR (APR)
$10,000-$49,999Prime Rate + 2.49% to Prime Rate +4.24%5.75%
$50,000-$100,000Prime Rate + 1.99% to Prime Rate +3.74%5.50%
Subject to change at any given time.

DOWNLOAD THE HOME EQUITY LOAN APPLICATION

South Central Bank, N.A. NMLS ID# 433946

Variable Rates: Prime Rate is based on the Prime Rate as Published in the “Money Rates” section of the Wall Street Journal each day. The annual percentage rate (“APR”) is based on your approved commitment amount, combined loan to value (“CLTV”), and your credit score as used in South Central Bank underwriting. The APR on variable rate home equity lines is determined by adding or subtracting a margin to an index. The APR on variable rate lines may increase or decrease and may not exceed 16.25%. . If a fully indexed rate is Prime + 1.75%, Prime is the index and 1.75% is the margin. If Prime Rate is 3.25%, the fully indexed rate is 5.00%. The annual fee, which is waived the first year, is $45. The minimum APR is 3.50%. Rates shown are for a CLTV of 75% or less for primary residences in Illinois.

Conversion Option: The plan contains an option to convert the annual percentage rate under the plan from a variable rate with annual percentage rate limits to a fixed rate plan. Your ANNUAL PERCENTAGE RATE may increase if you exercise your option to convert to a fixed rate. There will be a fee of $150.00 to be paid at the time of conversion. The rate will be determined by the Prime Rate as published by the Wall Street Journal 45 days prior to the request, plus a margin of 3.875%. As of January 26th, 2015, Prime Rate was 3.25%. Adding a margin of 3.875% will give a fixed rate of 7.125%. In order to convert the loan, the request must be made in writing to South Central Bank, N.A. within the 90 day period immediately prior to the end of the 120 month “draw period”. At the time of conversion, the loan must be current.

Home Equity Loans and Lines are secured by a mortgage on your primary residence. All loans are subject to satisfactory appraisal, title, insurance and South Central Bank’s internal credit policies. Third party fees ranging from approximately $150.00 to $850.00, covering appraisal, title, etc. are the responsibility of the borrower. Rates subject to change without notice and may be higher than the rate currently offered. The amount of the loan you qualify for depends on your annual gross income and the lendable equity in your home less any debt secured by your home. The purpose of a loan may be restricted by law and South Central Bank policy. For lines of credit the minimum draw per advance is $500. A prepayment penalty also known as an “early release fee” may apply. Property and flood insurance may be required and other restrictions may apply.