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Home Equity Loans and Lines of Credit – Which is Best for You?

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Tired of Cocooning? Make the Most of Being Stuck Inside. Give Your Home a Makeover with the Help of these Great Rates!

Turn the equity you have in your home into a ready credit source for education, home improvements, bill consolidation, and more. Both Home Equity Loans and Lines of Credit can have pros and cons depending on the reason you are borrowing. Our Personal Banking Team can help you determine the best option based on your financial situation. Traditions Bank offers competitive rates and flexible payment options.

What is a Home Equity Loan?

Fixed-term Home Equity Loans allow for a consistent payment and interest rate for the loan term or “life” of the loan. This option works well if you borrow with a specific financial goal in mind, like paying off educational expenses, consolidating debt, or undergoing a large-scale home remodeling project. Home Equity Loans generally have a lower interest rate than other personal loans or credit cards. It’s important to remember that the collateral on this loan will be your home.

Talking with us about your needs and budget can help our team determine whether this is the right type of loan for you. There is no fee to apply for our Home Equity Loan. See details below for other possible fees.

What is a Home Equity Line of Credit?

Home Equity Lines of Credit allow you to create a pool of available credit to draw on as you need. You always know the maximum amount you have available to borrow. As you pay down your line’s balance, the money becomes available for you to use again and again. Lines of Credit have a variable interest rate meaning the rate you pay can change from time to time. Two convenient payment options are available: Principal and Interest, or Interest Only. There is no fee to apply for our Home Equity Line of Credit and no annual fees. See details below for other possible fees.

Home Equity Loan Special as of April 14, 2021Rates may change without notice.
Term APR* Payment**
10 years 3.49% $9.88
No Fee*** to apply.

 *Annual Percentage Rate. For qualified borrowers only. Minimum loan amount is $25,000. Stated APR is for loans secured by a 1st lien on the borrower’s principal dwelling. Maximum loan to value is 80%. To qualify for the 3.49% APR the payment must be automatically deducted from a Traditions Bank checking account. Without auto deduction the APR is 3.74%. The payment amount does not include taxes and insurance premiums. The actual payment obligation could be greater. Other rates and terms available.

May not be used for a purchase money mortgage. Property insurance is required. Flood insurance may be required. Title insurance required for loans of $250,000 or greater. 

**120 monthly payments of $9.88 per $1,000 borrowed at 3.49% APR, 120 monthly payments of $10.00 per $1000 borrowed at 3.74% APR. 

***If appraisal is required, appraisal fee is the responsibility of the borrower. Recording fees for properties in Maryland will be responsibility of the borrower.

Home Equity Line of Credit Special as of April 14, 2021Rates may change without notice.
Term APR*
First 12 months 1.99%
Then converts to our regular APR** 4.00%
No Fee*** to apply. No Annual Fees.

*Annual Percentage Rate. Promotional rate available for new lines opened from 3/1/2021 thru 4/30/2021. Offer subject to change without notice. 

Introductory period starts when the line is opened. Offer available for new-to-the-bank home equity lines secured by a 1st or 2nd lien on the borrower’s principal dwelling. Maximum line amount for introductory rate is $250,000. Offer also available for existing Traditions Bank home equity line customers who increase their current credit limit by a minimum of $25,000 and draw $25,000 in additional funds. The $25,000 draw is in addition to any funds that may be advanced on the current line. Current Traditions Bank customers in the first 36 months of their loan will be required to pay an early termination fee. Maximum combined loan to value of 80%. Payment must be automatically deducted from a Traditions Bank personal checking account. 60 month draw period. Early termination fee applies if line is closed within 36 months. May not be used for a purchase money mortgage. For qualified borrowers only. Other rates and terms available.

*1.99% APR for 12 months offers are for line amounts of $50,000-$250,000. Rate is 2.24% APR for 12 months for line amounts less than $50,000.

**Current APR is based on the Wall Street Journal Prime (WSJP) rate plus a margin and is subject to change monthly after introductory period ends. Maximum APR is 18.00%. As of 2/26/2021, current APR tiers are as follows: WSJP + .25% for line amounts of $50,000 or more with a minimum APR of 4.00%, WSJP + .75% for line amounts under $50,000 with a minimum APR of 4.25%.

***If appraisal is required, appraisal fee is the responsibility of the borrower. Recording fees for properties in Maryland will be the responsibility of the borrower.

Property insurance is required and flood insurance may be required.

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