Our Equity Advancer First Lien HELOC offers a unique opportunity to enhance your borrowers' home equity. It includes a checking account that automatically sweeps daily against the principal balance of the Line of Credit. This feature helps borrowers reduce interest and pay down their mortgage much faster than a traditional amortized mortgage. Once the credit limit is set based on qualifying criteria, it remains unchanged for the first 10 years, then gradually decreases each month by 1/240th until reaching zero.
Our Equity Advancer First Lien HELOC provides several key advantages for your clients. When making regular checking account deposits it helps lower their mortgage balance, reduces overall interest, and shortens the loan payoff time. Unlike traditional mortgages, where payment levels don't change without the cost and requalification of refinancing, the borrower's scheduled (or minimum) monthly payment with Equity Advancer immediately decreases in proportion to any principal paydown. Additionally, it offers available credit for home improvements and repairs, consolidates higher interest debt, and provides flexibility for unexpected financial needs.
To qualify free-and-clear properties for our First Lien HELOC, the minimum draw requirement must be met. This will allow your clients to leverage their fully paid-off properties effectively. Refer to Cash-Out Refinance section of our guidelines as well as our prepayment schedules for additional information and requirements.
Imagine offering your clients a way to pay off their mortgage in half the time! With our First Lien HELOC, there's no amortized payment schedule, allowing them to pay down the principal balance each year. The secret to this accelerated payoff is their financial habits. If they spend less than they earn each month, this product can help them achieve financial freedom faster than ever!
Our Equity Advancer First Lien HELOC is disclosed as an open-ended line of credit. When presenting this product to clients, it's important to highlight that it functions similarly to a credit card, allowing them to borrow and repay funds as needed, up to their credit limit. The disclosures should include details about the interest rates, fees, and repayment terms, emphasizing the flexibility and benefits of managing their finances with this type of loan. Additionally, ensure clients understand the minimum draw requirements and how the credit limit will remain unchanged for the first 10 years before gradually decreasing.
When borrowers make a deposit into their account, the funds are automatically swept daily to reduce the balance of their HELOC. This means the deposited money is immediately applied to the principal balance. By reducing the principal balance, borrowers can save on monthly interest expenses, as interest is calculated on the remaining principal. This daily sweep feature allows them to use their deposits effectively to lower their mortgage costs and pay off their loan faster.
Offer your clients competitive HELOC rates with confidence! The initial rate is determined at the month of closing, based on the 30-day compound SOFR, set on the first business day of the month including the note date.
Price is determined based on key qualifying characteristics such as Loan-to-Value (LTV), Credit Score, property type, occupancy, and loan size. This ensures a personalized and fair rate for each client, making our Equity Advancer First Lien HELOC an attractive and flexible financing option.
