Home Equity Lines
The First Advantage Account
Unleash the powerful value you’ve built in your home with a The First National Bank of McHenry First Advantage Home Equity Line of Credit. Use it for …
- Home repairs. Improvements. Expansion.
- Education expenses.
- Consolidation of other debt to a lower interest rate.
- Finance a new car, boat, or recreational vehicle.
- Unplanned emergencies.
An open ended First Advantage Home Equity Line of Credit is one of our most popular types of personal loans because it provides …
- Easy access – just write a check or transfer funds to your household checking account using First Fone telephone banking or Personal Online Banking.
- Readily available so you don’t have to liquidate investments or reapply.
- Tax deductible interest. (Please check with a qualified tax advisor for certain restrictions.)
- Interest rates tied to the Prime Rate as published in the Wall Street Journal.*
Other benefits of your First Advantage Home Equity Line of Credit Account include …
- NO required minimum draws.
- Annual fee of $30 waived the first year as well as subsequent years provided your outstanding balance on the line of credit exceeds $10,000 during the previous calendar year.
- Lock feature that would allow you to lock in fixed portions of advances at lower rates in the event interest rates begin moving higher.
With the First Advantage Home Equity Line of Credit we can offer you credit lines starting at $5,000 and allow you to pay only the interest for the first ten years. You may always pay extra principal at any time without penalty.
What kind of First Advantage Home Equity Line of Credit do you qualify for?
Because the First Advantage Home Equity Line of Credit is a loan secured by the equity you have in your primary residence, you will need to know how much lendable equity you have in your home. This is determined by using the following formula…
Lendable Equity Formula
| Current Value of your Primary Residence | $150,000 |
| First National Bank's Lendable Equity Standard | x75% |
| $112,500 | |
| (Subtract) First Mortgage Balance | ($95,000) |
| Maximum Potential Line of Credit | $17,500 |
In the example above, we assumed your primary residence to have an appraised value of $150,000. We also assumed that your remaining first mortgage balance is $95,000. Using those given parameters, you would be eligible for a $17,500 First Advantage Home Equity Line of Credit.
How much money can be saved with a First Advantage Home Equity Line of Credit?
That depends. The following example details how much you could potentially save with a First Advantage Home Equity Line of Credit. It assumes a monthly payment based on an interest only payment option and 30 day calculations. It also assumes an APR 8.25% for the First Advantage Home Equity Line of Credit and credit card balances estimated at an APR of 18%. The example is for demonstrational purposes only. Your individual experiences and payment options will no doubt be different.
| Amount Borrowed | First Advantage Home Equity Monthly Payment | Credit Card Monthly Payment | Total Monthly Savings |
| $5,000 | $34.38 | $75.00 | $40.62 |
| $15,000 | $103.13 | $225.00 | $121.87 |
| $25,000 | $171.88 | $375.00 | $203.12 |
*Because the Prime Rate as published in the Wall Street Journal is a variable rate, the rate may increase or decrease after the consummation of the transaction. There is a rate cap and floor of 16% and 5% in place for the First Advantage Home Equity Line of Credit.