We’re excited to offer a new home equity loan: HELOAN 240, a second lien mortgage that can help you make the most of your home equity and access more cash up front. You can keep the favorable rate on your existing first mortgage and get a better rate than a HELOC.
Curious what a HELOAN 240 is? Good question! Let’s break it down.
Fremont Bank’s HELOAN 240 is a second lien home equity loan that is amortized over 240 months (20 years). The rate is fixed for 7 years and adjusts thereafter for the remaining 13 years. That means for the first 7 years during your introductory period your rate and payment won’t fluctuate. After the initial fixed-rate period, the rate can adjust every 6 months based on the market. These loans are commonly known as adjustable rate mortgages (ARMs), where the interest rate and payment can change periodically after the initial fixed period. In this case, after 7 years.
Why would I want a HELOAN 240 instead of a HELOC?
A HELOC (home equity line of credit) is a popular product that allows homeowners to use the existing equity of their homes for a range of reasons — for renovations or needed repairs, to pay off or consolidate debt, or for other expenses.
With a HELOC, you can continue to take equity out from your home during your draw period as long as you don’t exceed your line limit. As you repay the balance on your HELOC, you can continue to access the cash again as long as you are within the initial 10-year draw period.
With a HELOAN 240, all cash must be taken out initially as a lump sum payment with no future access to equity. If you have larger up-front expenses without the need to finance future expenses, it may be worth considering the HELOAN 240 over a HELOC.
You can use our new HELOAN 240 for the same purposes as a HELOC — any expenses you decide. The big difference is that our new HELOAN 240 offers a lower initial rate than the rate for a HELOC and a longer fixed-rate period of 7 years. That means your payments stay both lower and consistent longer.
What are some other benefits of the HELOAN 240 underwritten by Fremont Bank?
This new product offers No Closing Cost or a Smart Rate flat fee of $600 at a reduced interest rate — so you can choose the closing cost structure that works for you.
HELOAN 240 benefits:
- Consistency: Fixed interest rate for 7 years
- Lower rate: HELOAN 240 rates are lower than current HELOC rates
- Lump sum: Get a large one-time payment up front
- Qualifying payment: Easier to qualify than a HELOC
- Closing cost options: No Closing Cost or Smart Rate flat fee of $600 for a reduced rate
Why get a home equity loan with Fremont Bank?
Our home equity loans are underwritten by Fremont Bank to our own internal standards — so you get more flexibility. Underwriting is the process of verifying all the qualifications (income, debt, assets, and details about the property) used to decide the final approval of a loan application. We take the time to evaluate your situation, consider any unique circumstances, and potentially tailor the loan to meet your financial needs.
We’ve built our 60+-year reputation on top-tier customer service and deep knowledge of the local real estate markets. We understand our clients’ needs and can customize standards accordingly.
Want to learn more?
This new product is for loans up to $500,000 with a 20-year term. It is being offered for owner-occupied, second-home, and non-owner-occupied properties.
