Where does Fremont Bank do business?
Fremont Bank is based in Fremont, CA. The company was founded in 1964 and offers home equity lines of credit (HELOCs) to borrowers in 4 states across the USA.
How much can you borrow with a HELOC?
Home equity lines of credit are lines of credit -- similar to a credit card -- that are secured by your home. Once you get approved for a certain amount, you can borrow as much as you need by writing a check or a credit card attached to the account.
Fremont Bank allows borrowers to apply for lines of credit of up to $250,000. Note that the maximum loan amount you can borrow will vary depending on the value of the property, how much you owe on it, and your creditworthiness.
This lender's maximum loan to value rate is 80%. That means the total debt secured by the property cannot exceed 80% of its value. Let's say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have good credit, you may qualify for a line of credit of up to $60k.
What are the terms for a HELOC via Fremont Bank?
HELOCs have a draw and a repayment period. During the draw period you can borrow as much as you need up to your credit limit. After the draw period, you are responsible for repaying the loan.
Fremont Bank offers home equity loans with a draw period of up to 10 years and a repayment period of 20 years.
Is there a minimum draw requirement?
Yes, there is a minimum draw requirement of $300. Fremont Bank also requires borrowers to have a minimum average balance of $500 to avoid penalty fees.
What range of rates does Fremont Bank offer?
Fremont Bank offers home equity loans with APRs starting at 4.5% and up to 18%.
Remember the APRs of HELOCs do not include points and financing charges, just the interest rate. Most home equity lines of credit have a variable interest rate. Fixed interest rates -- if available -- typically have higher APRs, but your monthly payments don't change over the life of the line of credit.
What fees does Fremont Bank charge for a HELOC?
Fremont Bank may charge a loan origination fee. Expect an initial processing fee of $95. There is also an annual fee of $75. Another fee you should factor in is a cancelation fee of up to $500.
What types of property can you use as security for a HELOC with Fremont Bank?
Lenders often have restrictions on the type of properties they will accept as security for a HELOC. Fremont Bank will consider lines of credit secured by the following property types:
- Primary home
- Secondary homes and vacation properties
39150 Fremont Blvd
Fremont, CA 94538 USA
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Other Services by Fremont Bank
|Initial Processing Fee||$95|
|Draw Period (years)||10|
|Repayment Period (years)||20|
|Required Average Balance||$500|
|Loan Amount||$20K - $250K|
|APR||4.5% - 18%|