Support on this site for Internet Explorer 7 and Internet Explorer 8 will end on April 26, 2017. You must update your browser prior to then to continue accessing ubt.com and UBTgo Online Banking. Learn More Here >>

next

 

What's Next for Your Family?

A graduation? Maybe a wedding? Whatever it is, we’re excited to see what you’re planning, and we’ll show you how a Home Equity Line of Credit can help you bring it to life. Just like we’ve done for 100 years.

5 Signs It's Time to Remodel.
By Nick Ludwig, UBT Loan Specialist

If you own your home, chances are pretty good that you’ve considered remodeling it at some point. But when is the right time? Sometimes it takes an event, like a high school graduation, to get the project started. For others, it’s the anticipation of creating a unique space they can really use. If you’re on the fence, here are 5 signs that it may be time to make your home remodel a reality. . . Read On






HELOC Frequently Asked Questions

1. What is equity and do I have it?

If you have owned your own home for a few years, chances are, you have some equity! Equity is simply the portion of your home that you own. If you have a mortgage, you can estimate your equity by taking your home’s market value (use your tax assessed value as an estimate) minus the amount you owe for your mortgage and any other debt you have tied to your property. The percentage of your home that you own vs. owe is your equity. If you are considering borrowing against this equity, a good rule of thumb is to have 20% equity, although there are programs that will allow you to borrow against less. Check with a banker for details.

2. Do I have enough equity in my home for a HELOC?

The first step to deciding if a HELOC is right for you is to determine how much equity you have in your home. If you have a mortgage, you can estimate your equity by taking your home’s market value (use your tax assessed value as an estimate) minus the amount you owe for your mortgage and any other debt you have tied to your property. The percentage of your home that you own vs. owe is your equity. If you are considering borrowing against this equity, a good rule of thumb is to have 20% equity, although there are programs that will allow you to borrow against less. Check with a banker for details.

3. Is an appraisal required as part of my HELOC application?

A current home valuation is required for your HELOC, however you may not necessarily need to pay for an appraisal. If your tax-assessed value will provide for the funding that you are looking for, you may be able to use this valuation. For details specific to your situation, visit with a banker for complete details.

Apply Online
4. Are there limitations on how I can use my HELOC funds?

Your HELOC is built to be flexible and allow you to use your funds for the things that you choose. Over the life of your line, you could use your HELOC to personalize your home, make it more energy efficient, finish new living space, or update older areas of your home. In addition to remodeling, you could also purchase a new car, consolidate higher-interest debt, take a dream vacation, etc. If you choose to make improvements to your home, your interest could be tax deductible. Consult a tax advisor regarding deductibility of interest.

As with any time you borrow, you should first ask yourself how important the purchase is to you and make a plan to pay back the funds.

5. How will you evaluate my HELOC application?

There are several factors that are considered when applying for a HELOC, including the following main criteria:

  • Income: This one is pretty straightforward – Do you have a regular, reliable source of income to repay your line of credit.
  • Credit Score: We will pull your credit score as part of your application process. This will allow us to see your past payment habits and any outstanding debt. It’s a good idea to review your credit at least once a year to ensure that your credit history is up to date and to prevent fraud.
  • Debts & Assets: Ensure that any outstanding debts are paid. You will be asked to report them on your application. We will also figure your Debt-to-Income Ratio (the percentage of your income that is already dedicated to paying off your existing debts) as part of the application process. Your assets may include cash, savings, CDs, investments, retirement accounts, and, of course, your home.
  • Equity: When applying for a HELOC or fixed home equity loan, it is important to know how much equity you have in your home. You can estimate your equity by taking your home’s market value (use your tax assessed value as an estimate) minus the amount you owe for your mortgage and any other debt you have tied to your property. The percentage of your home that you own vs. owe is your equity. If you are considering borrowing against this equity, a good rule of thumb is to have 20% equity, although there are programs that will allow you to borrow against less. Check with a banker for details.

Subject to credit approval. Offer is for new loans only with a minimum loan amount of $10,000. Promotional APR of 2.15% (daily periodic .0058904%) effective for a 15 month period from the date account opened. Upon expiration of the 15 month period, rate will be variable equal to the Wall Street Journal published Prime Rate (“index”) then in effect plus a margin. The index as of 3/1/2017 is 3.75%. Current margins range from .50% to 4.00% resulting in corresponding variable APRs up to 7.75% based on the current index. The variable rate may change quarterly and is subject to a minimum APR of 5.00% and a maximum APR of 16.00%. Fees to open the plan range from $200 to $860 and there is a $49 annual fee. You must also carry insurance on the property that secures this plan. Consult your tax advisor on deductibility of your interest. For applications received by 4/30/2017. Member FDIC