Sterling Bank & Trust HELOC Review

Where does Sterling Bank & Trust HELOC do business?

Sterling Bank & Trust is based in Southfield, MI. The company was founded in 1984 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.

Sterling Bank & Trust HELOC allows borrowers to apply for lines of credit of up to $500,000. 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 85%. That means the total debt secured by the property cannot exceed 85% 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 $65k.

What are the terms for a HELOC via Sterling Bank & Trust HELOC?

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. 

Sterling Bank & Trust HELOC 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?

No, there isn't a minimum draw requirement.

What range of rates does Sterling Bank & Trust HELOC offer?

Sterling Bank & Trust HELOC offers home equity loans with APRs starting at 5.75% and up to 18.5%.

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 Sterling Bank & Trust HELOC charge for a HELOC?

Sterling Bank & Trust HELOC may charge a loan origination fee. There is also an annual fee of $50. Another fee you should factor in is a cancelation fee of up to $375.

What types of property can you use as security for a HELOC with Sterling Bank & Trust HELOC?

Lenders often have restrictions on the type of properties they will accept as security for a HELOC. Sterling Bank & Trust HELOC will consider lines of credit secured by the following property types:

• Primary home