3 days to a new financial future with a Fidelity Bank Home Equity Loan

3 days to a new financial future with a Fidelity Home Equity Loan

When it’s time to make home improvements, help a college-bound student finance their education, or consolidate credit card debt, homeowners may want to consider applying for a home equity loan. With modern technology, and a few tips from Kate Abraham, Mortgage Underwriting Officer at Fidelity Bank, the application process is easier than ever. Fidelity’s 3-Day Guarantee to approval sets homeowners on the path to a brighter financial future in no time.*

What’s the difference between a home equity loan and a home equity line of credit?

A home equity loan has a fixed interest rate and a set monthly payment. It is a great option for a borrower who has a specific project they want to tackle. A home equity line of credit has a variable interest rate (based on National Prime) and a variable monthly payment during the draw period. This is a better option for a borrower who wants to have access to cash should they ever need it.

Who is a good candidate to apply for a home equity loan?

 A good candidate is:

• Someone who has built equity in their home. A homeowner has equity when a home’s value is higher than the amount owed on the mortgage;
• A homeowner with good credit, typically a score of 710 or greater

What are some of the benefits of taking out a home equity loan?

With a home equity loan the borrower never has to worry about fluctuations in the interest rate, as it will stay the same for the life of the loan.  Borrowers have the benefit of set monthly payments so budgeting is easier each month. It’s typically a low-cost option to get access to the funds you need.

What should people consider before applying for a home equity loan?

The bank will run a credit check, confirm employment of the borrowers, and look at their debt-to-income, or the amount of money they owe versus their income. If all of those factors are within an acceptable range, the borrowers still must consider their ability to repay the loan during the loan period, which can range from 5 years to 15 or 20 years.

What documents or information will borrowers need to apply or consult with their banker?

Some items they may need include:

• Estimated insurance;
• Tax amounts;
• Home value
• Estimated income verification

Describe the application process.

Fidelity Bank makes applying online fast and convenient with the Fidelity Bank Mortgage app. It’s available 24 hours a day, 7 days a week and allows clients to upload documents to a portal, sign up for automatic notifications and complete almost the entire mortgage process from their smart phone or tablet. They can request as much, or as little, assistance from a Fidelity Banker as they like.

Learn More

Fidelity Bank has multiple local branch offices throughout Lackawanna, Luzerne, and Northampton counties, and our full-service Customer Care Center is at your service 7 days a week. Call or visit your local branch office today.

*Guarantee of loan decision is within three (3) business days pending receipt of complete loan application including signatures of all borrowers, signed disclosures, and all necessary financial information. Restrictions apply on loans greater than $500,000.00. Not a guarantee for an extension of credit. Please see a Fidelity Banker for more details.

Daniel J. Santaniello, President and CEO, of Fidelity Bank, publishes Financially Fit with Fidelity, your guide to financial well-being, every Thursday. If you’re interested in a financial topic we haven’t yet covered or want to subscribe to our emails, please feel free to drop us a line at blog@fddbank.com. We would love to hear from you.