Lots of questions. All the answers.

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Home Equity Lines & Loans

What are the costs of obtaining a HELOC or home equity loan?

Costs vary by state and product type. Contact us at 847.576.5199 for your customized quote.

What is the difference between a HELOC and a Home Equity Loan?

The HELOC is an open-ended mortgage. A home equity loan is a closed-end mortgage. On the HELOC your payment is based on the interest rate and payment option chosen at the time the loan is issued. It could be interest-only payment options or principal and interest payment options. You can continue to use the available dollar amount on the line for 10 years. In other words, the HELOC can be repaid, and then you can borrow the money again and again. With a home equity loan, you take the full amount of the loan at closing, and interest starts accruing on a daily basis and repaid on a fixed monthly basis.

How long does it take to close on a HELOC or home equity loan?

It should take no longer than four (4) weeks from application to closing.

How is interest accrued on a home equity line of credit?

Interest is accrued daily on the outstanding balance for that day, which is multiplied by the current interest rate divided by 365. Ready for this?

Example: A $10,000.00 balance with an interest rate of 4.25% will result in a daily interest accrual of $1.16: 10,000.00 X .0425 / 365 = 1.16.

There are lots of "rates" involved. This one reads a little like an SAT problem, but we're showing our work:

  • An Andigo home equity line of credit features a variable interest rate based on the Prime Rate plus or minus a margin based on credit criteria, loan limit and combined loan to value ratio.
  • An Andigo home equity line of credit features a variable interest rate based on the Prime Rate plus or minus a margin based on credit criteria, loan limit and combined loan to value ratio.
  • The Prime Rate is published in the Wall Street Journal and is reviewed 45 days in advance of the quarterly rate change date.
Read all about rate information, if you so fancy.

What is the interest rate on the Home Equity Line of Credit (HELOC)?

The current interest rate is posted on our rates page.

Is the interest rate on a HELOC Fixed?

No. The interest rate is a variable rate subject to change on a monthly basis. When the interest rate changes, it changes the monthly payment amount.

When will my home equity loan be approved and when will my home equity funds be available to me?

There are a few steps involved:

  • Once we receive all of your supporting documentation, you can expect a pre-approval based on credit-worthiness within three business days.
  • Once you're pre-approved, an appraisal company will hit you up to schedule an appointment for a walk-through appraisal. In some cases, we may be able to use market data instead of an appraisal.
  • Within ten business days of that appraisal, we'll contact you with info on the final loan approval and conditions.
  • If all is kosher there, you'll be asked to schedule an appointment for closing.

That whole process takes three to five weeks. You should know, by law, we're required to provide a waiting period of three business days after closing before making the funds available, just in case you change your mind about taking the loan.

If you don't see those funds in three business days or you have any questions, just call us at 847.576.5199 (option 3, 2) or toll-free 877.270.6392 (option 3, 2).

Is there a minimum amount I must draw on my home equity line of credit?

Yup, it's $500 (unless you're in Texas then it's $4,000 everything is bigger down there, we hear). As long as you have an available balance, you can access or take an advance against your home equity line of credit (HELOC) at any time during the first ten years of your loan.

What paperwork should I provide with my home equity application?

We'll ask you for:
  1. Mortgage billing statement(s) for any properties you own
  2. Annual amount of real estate taxes, homeowner's insurance and any homeowner's association (HOA) dues - that's if you don't escrow your taxes and insurance; if you do, don't worry about this.
  3. Verification of income; this includes pay stubs, and two years of full, signed US Income Tax Returns or if you're retired then it's your most recent annual award letter from SSA, Benefits, etc. and/or IRA Statements AND your full US Tax returns to show IRA distributions. No worries, your Loan Officer will guide you through this!
  4. Declarations page from homeowner's insurance on all owned properties (including subject property)
  5. Copy of most recent tax bill for all owned properties
  6. When in doubt, send it along with your application and we'll take a look.
Remember, you can do all this online or over the phone at 847.576.5199 option 3, 3.

Are there any prepayment penalties?

Nope! Though there are no prepayment penalties, some Home Equity Line of Credit products may have an Early Closure Fee.

How do I transfer money from my home equity line of credit (HELOC) to my checking account?

Let me count the ways:

  1. Visit an Andigo branch
  2. Log into your online banking account
  3. Send a fax of your transfer request to the loan department with your signature to 847.538.4563
  4. Call us at 847.576.5199

What do I do if my home has been damaged and I have an Andigo Home Loan?

It's a bad break, but we're not here to punish you. It's true that as your home loan lender we do have a security interest in the property, so we need to make sure it’s restored to its original condition or value — which is no doubt on your mind, too! Just contact our loss draft processing partner at 866.222.8118 for help with the property claim process. Make sure to have your loan information (like the loan number) handy.

If you're eager to move things along, create an account at www.insuranceclaimcheck.com. There you can download a claim package and upload the completed documents for processing. You will also be able to track the status of your claim.