A home equity line of credit can be a helpful financial tool for homeowners. Most banks and credit unions offer a home equity line of credit at a far more affordable rate than a personal loan or credit card, and flexibility is built into the revolving credit line so homeowners can use funds when and how they see fit. Money drawn from a home equity line of credit can be used to fund any of life’s major expenses, like home renovations or upgrades, college tuition for children or grandchildren, a vehicle purchase, or the consolidation of high-interest debt. Before taking out a new home equity line of credit, it is beneficial to shop around with various lenders to ensure you’re receiving the best possible interest rate and flexibility to meet your borrowing needs.
For applications submitted now through April 13, 2017, Comerica Bank is offering a home equity line of credit to new borrowers with an introductory interest rate as low as 2.74% for the first six months. After the promotional period ends, homeowners will receive a variable interest rate as low as 4.75%. To qualify for the lowest possible introductory rate, homeowners must establish automatic payments from a Comerica Bank deposit account, and the credit line approved must be no less than $50,000. Comerica Bank does not impose an annual fee for home equity lines of credit so long as the account remains open and in good standing for 10 years.
Homeowners must qualify for a new home equity line of credit through Comerica Bank based on creditworthiness and the home’s loan-to-value ratio. The lowest possible interest rate is available to borrowers who have no more than 80% loan-to-value at the time of application. There are no title fees and no cost for the property appraisal so long as the credit line is below $500,000. However, property insurance on the home is required. All home equity lines of credit have a 10-year draw period where homeowners can borrow against the account, and a 20-year repayment period depending on the amount borrowed. Interest-only payments are available to qualified homeowners, and fixed-interest can be applied to borrowed funds when certain criteria are met.
Comerica Bank was established more than 165 years ago, and currently, it serves as the primary financial institution for personal and business banking customers in Texas, Arizona, California, Florida, and Michigan. The bank offers a variety of home loan and line of credit products in addition to deposit accounts, personal lending options, and wealth management services.
Homeowners interested in gathering additional information about the promotional home equity line of credit offered by Comerica Bank may do so by visiting a branch location, calling a loan specialist at 1-800-589-1400, or visiting the bank online.
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