How do I quickly calculate my home equity?

Follow these steps to calculate your home equity: 1. Determine the estimated value of your home. <a href="https://www.redfin.com/what-is-my-home-worth" target="_blank" rel="noreferrer noopener">Use this tool to quickly determine that value.</a> 2. Check the remaining mortgage balance on your latest mortgage statement. 3. Determine the “Loan to Value (LTV) ratio by dividing the remaining mortgage balance by the current value. 4. Calculate your home equity using the formula:. 100% – LTV = Home Equity. Example: If you have a $400,000 home with a remaining mortgage balance of $244,000. - The LTV is $244,000/$400,000 or 0.61 (61%). - The home equity for this example is: 100% – 61%= 39%. Note: Fidelity Bank usually requires less than an 80% LTV ratio, which equals 20% home equity. At Fidelity Bank, we pride ourselves on making the process as easy and convenient as possible. Talk to a Fidelity Banker whichever way you choose – in person, on the phone, or digitally.

What are draw and repayment periods?

A Home Equity Line of Credit has two different periods, a draw period and repayment period. The draw period is 10 years, where you have ongoing access to available funds and can use the funds how you’d like. Once the draw period ends, the account enters the repayment period. During the repayment period, you can no longer advance on the home equity line of credit, and must make principal and interest payments. The new minimum payment will ensure the balance is paid in full by the maturity date. The interest rate on the balance continues to be variable.

Home Equity Line of Credit (HELOC)

Learn More about

With Fidelity Bank’s Home Equity Line of Credit (HELOC), you can tap into the equity you’ve built in your home to address various financial needs. Whether it’s unexpected expenses, home improvements, or major purchases, our HELOC offers you a flexible and affordable solution. You’ll have access to a low interest line of credit when you need it, simply by using the equity you’ve accumulated by living in your home for a few years.

What is a Home Equity Line of Credit (HELOC)?

A HELOC is a revolving credit line secured by the equity in your home. It provides you with ongoing access to funds during a draw period, allowing you to borrow as needed. Plus, you only pay interest on the amount you use.

Why Choose Fidelity Bank’s HELOC?

Fidelity Bank is the trusted local choice for HELOCs in Scranton, Wilkes-Barre, and the Lehigh Valley. We provide competitive home equity loan rates for Pennsylvania homeowners looking to access their home’s equity affordably.

Competitive Interest Rates: Enjoy low-interest rates on your HELOC, making borrowing cost-effective.
Flexible Use: Use your HELOC for a variety of purposes, from consolidating debt to funding home renovations.
No Origination Fees: We believe in transparency and simplicity, which is why we don’t charge origination fees.
Multiple Repayment Options: Tailor your repayment plan to fit your budget and financial goals.

Popular Uses for Our HELOC:

Cover Unforeseen Expenses
Consolidate Debt
Make Home Improvements
Take a Dream Vacation
Purchase a New Vehicle
Save for Special Occasions
Switch a High Rate HELOC to a lower rate

Control that Rate!

After you get your HELOC, you can choose to set a fixed interest rate for some or all of the money you borrow. This means you can lock in a rate that won’t change for up to 20 years, even if other interest rates go up. Read about the HELOC Rate Lock.

HELOC FAQs

How do I quickly calculate my home equity?

Follow these steps to calculate your home equity:
1. Determine the estimated value of your home. Use this tool to quickly determine that value.
2. Check the remaining mortgage balance on your latest mortgage statement.
3. Determine the “Loan to Value (LTV) ratio by dividing the remaining mortgage balance by the current value.
4. Calculate your home equity using the formula:. 100% – LTV = Home Equity.

Example: If you have a $400,000 home with a remaining mortgage balance of $244,000.
– The LTV is $244,000/$400,000 or 0.61 (61%).
– The home equity for this example is: 100% – 61%= 39%.

Note: Fidelity Bank usually requires less than an 80% LTV ratio, which equals 20% home equity.
At Fidelity Bank, we pride ourselves on making the process as easy and convenient as possible. Talk to a Fidelity Banker whichever way you choose – in person, on the phone, or digitally.

Will I have to pay an application fee for a HELOC?

No, Fidelity Bank does not charge application or origination fees for HELOCs. We aim to provide a cost-effective solution for your financial needs.

What are draw and repayment periods?

A Home Equity Line of Credit has two different periods, a draw period and repayment period. The draw period is 10 years, where you have ongoing access to available funds and can use the funds how you’d like. Once the draw period ends, the account enters the repayment period.

During the repayment period, you can no longer advance on the home equity line of credit, and must make principal and interest payments. The new minimum payment will ensure the balance is paid in full by the maturity date. The interest rate on the balance continues to be variable.

How much time will I have to draw funds from the HELOC?

You will have ten years to draw funds from your HELOC. During this time, you’ll make minimum payments as required.

Do I make payments during the draw period of a HELOC?

Yes, during the draw period of your HELOC, you will make payments that cover both the interest on the amount borrowed and a portion of the principal. This helps you manage your balance and interest charges effectively.

What happens when my HELOC draw period ends?

Once the draw period ends, you will no longer be able to withdraw additional funds. If there is an outstanding balance, you will transition to a repayment phase with required payments that include both principal and interest. Your payments may increase if you have only been making interest-only payments during the draw period.

Are HELOCs tax-deductible?

The interest on a HELOC may be tax-deductible depending on your circumstances. It is advisable to consult with a financial advisor or tax professional for personalized advice.

How to Apply for a HELOC with Fidelity Bank:

Apply online: Provide the necessary documents, including income verification and property details. Your secure application takes just 15 minutes, with no obligation and no cost.
Appraisal Processing: Your Fidelity banker schedules an appraisal of your existing property to determine its value.
Application Approval: A Fidelity Banker reviews your application and documentation. Our knowledgeable team will guide you through the process and answer any questions you may have.
Appraisal Approval: The appraisal has been received and reviewed.
Clear to Close: All approval conditions have been cleared and we are ready to schedule a closing.
Closing: Your closing is scheduled, and we are excited to complete your loan.

Unlock Your Home’s Potential Today

Take advantage of the equity in your home with Fidelity Bank’s HELOC. Apply now and gain the financial flexibility you need to achieve your goals. Serving NEPA and the Lehigh Valley.