| Fixed Rate Home Equity Loan
A fixed rate, fixed term monthly installment loan, secured by a mortgage on a borrower’s primary or secondary residence in NJ. This means that you are granted a loan with a constant monthly payment and interest rate that will not change for the term of the loan. The loan may be granted in terms from 1 year to 24 years.
Features:
Home equity loans are available on 1 to 4 family residences up to a maximum of $500,000.00 if the loan is a first mortgage lien on the property and $350,000.00 if the loan is a second mortgage lien on the property. The maximum loan for a condominium or townhouse is $250,000.00 regardless of mortgage lien.
Terms and payments are fixed for a minimum term of 12 months to a maximum term of 240 months. The maximum amount of the loan is subject to the borrower’s income, credit, and equity in the property.
A first or second lien position will be taken on the subject property. For 1-4 family properties there is a maximum loan to value requirement (LTV) of 75%. If the combined first and second mortgage liens exceed $500,000.00, the LTV ratio may not exceed 60%. For condominiums and townhouses the maximum LTV ratio may not exceed 70%.
Interest on the loan may be tax deductible-consult your tax advisor.
Rates:
Current fixed rate home equity loan rates can be found here. An interest rate discount of 0.25% is available if monthly payments are charged to a qualified NVE Bank checking account. Interest is computed at a fixed simple rate. An additional 0.25% rate reduction is provided to loan borrowers on terms up to 10 years if NVE Bank’s home equity loan is in a first mortgage lien position.
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