Turn your most valuable asset into a financial resource with a home equity line of credit (HELOC). Whether you need money to fund home improvements, pay down high-interest debt or cover unexpected expenses, borrowing money from the equity you’ve built up in your home may be a smart choice.
Lower rates
Home equity lines usually carry lower interest rates than other forms of debt.Pay interest only on the amount you use
Unlike other loans that accrue interest on the entire amount, you only pay interest on what you actually use with a home equity line of credit.A reliable source of cash
As you pay it down, your line of credit becomes available again, ready for planned—or unexpected—financial needs in the future.Tax advantages
Interest paid on a home equity line of credit may be tax-deductible; consult a tax advisor.
Next Steps
- Learn about Schwab Bank’s home equity line of credit.
- Apply online to open a Schwab Bank home equity line of credit.
- Call 1-800-861-0074 to talk to a Schwab Bank Loan Consultant.
Did You Know?
- Schwab Bank offers one of the lowest rates available—Prime minus 1.01%. That’s just 3.99% APR.1
- Credit card interest rates, on average, are more than three times Schwab Bank’s HELOC rate. 2
Questions? Call us. 1-800-861-0074
Schwab Bank Home Equity lines have a 10-year draw period followed by a 20-year repayment period. During the draw period, you will be required to make monthly payments of accrued interest. Payments will increase if rates increase. At the end of the draw period your required monthly payments will increase because you will be paying both principal and interest.
1The annual percentage rate (APR) on your line of credit is variable based upon The Wall Street Journal prime rate. As of May 1, 2008, the APR is 3.99%. The maximum annual percentage rate that can be charged on your line of credit is the greater of (a) 15% or (b) 8% over the initial rate.
2Average consumer credit card rate (non-reward): 12.59%. Source: IndexCreditCards.com as of May 2, 2008.
You may not use this home equity line as a bridge loan, for commercial purposes, to invest in securities or to repay a margin loan. The minimum credit line amount is $50,000, and the maximum is $3,000,000.
Charles Schwab Bank will pay customary bank closing costs, including lender fees, except in Texas. You are responsible for paying any state, county or local taxes imposed on a mortgage transaction. For locations where these taxes are imposed, the tax may vary from a flat fee of $325 to a charge of $1.00 to $10.00 (up to $21.75 in New York) for every $1,000 of the total line amount, based on the location of the property. Borrower may also be required to pay a notary fee, varying from $.50 to $10, to execute the loan documents. Closing costs in Texas vary between $0 and approximately $1,150 depending on the size of the line.
Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. This offer is subject to change or withdrawal at any time and without notice. Other conditions and restrictions may apply. Hazard insurance may be required. Program terms and conditions are subject to change.
Charles Schwab Bank and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc. Brokerage products offered by Charles Schwab & Co., Inc. are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, and are subject to investment risk, including the possible loss of principal invested. Charles Schwab & Co., Inc., a registered broker-dealer and SIPC member, does not solicit, offer, endorse, negotiate or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. All mortgage loans are offered and provided by Charles Schwab Bank, member FDIC and an Equal Housing Lender. Charles Schwab Bank is not acting or registered as a securities broker-dealer or investment advisor.
We respect your privacy. To minimize your receipt of duplicate information and for internal recordkeeping purposes, Schwab may track responses, if any, to this offer.
Read more about Charles Schwab & Co., Inc. and Charles Schwab Bank privacy policies below.
Charles Schwab & Co., Inc.: http://www.schwab.com/privacy
Charles Schwab Bank: http://www.schwabbank.com/privacy.do
Charles Schwab Bank, 101 Montgomery Street, San Francisco, CA 94104
©2008 Charles Schwab Bank, All rights reserved. SCH 05248 (0308-2633) ELC42586 (06/08)
