Routing Number: 053100452   •   Locations   •   Contact Us

Business Login
Personal Login
M&F Bank Logo
FDIC Digital Sign
Home Equity Line of Credit at M&F Bank

Home Equity Line of Credit

Your home is more than just a place to live; it’s an asset that can open up a world of possibilities. At M&F Bank, we understand the value of homeownership and the financial opportunities it presents. That’s why we offer the Dream Big Home Equity Line of Credit (HELOC), a flexible financial solution tailored to your needs.

Features:

  • No closing costs up to $1500
  • 10-year draw period and 10-year repayment period
  • Interest may be tax-deductible [ask your tax advisor]

Whether you dream of home renovations or facing unexpected expenses, our HELOC can provide the cash you need to make your dreams a reality.

What is a Home Equity Line of Credit?

Understanding the Basics

A Home Equity Line of Credit, or HELOC, is a versatile financial tool secured by the equity in your home. It functions like a credit card, giving you the freedom to access funds as needed and pay them back monthly. The best part is that the amount you repay becomes available again, offering continuous financial flexibility.

 

Determining Your Eligibility

The equity in your home is calculated by taking your home’s current market value and subtracting your outstanding mortgage balance. For instance, if your home is appraised at $275,000 and you owe $100,000 on your mortgage, your home’s equity is $175,000. Typically, you can access up to 80% of your home’s equity through a HELOC.

Apply through our secure portal today

Loading...

How Does a Home Equity Line of Credit Work?

A Home Equity Line of Credit is a valuable, multi-purpose resource:

  • Home Improvements: Make your dream renovations a reality.
  • Debt Consolidation: Pay off high-interest debts and regain financial control.
  • Emergency Expenses: Cover unexpected costs like medical bills or home repairs.
  • Education: Secure lower rates for tuition payments and student expenses.

Understanding the Repayment Terms

A HELOC comes with two distinct periods:

  • Draw Period: Typically spanning 5-10 years, this phase allows you to borrow from your credit line. Monthly payments during this period are interest-only, providing flexibility. You can also choose to pay down the principal balance if you wish.
  • Repayment Period: After the draw period, the repayment period begins. Monthly installments include both principal and interest. They are usually higher than during the draw period.

Getting the Best HELOC Rates

HELOC interest rates are generally based on the prime market rate and vary between financial institutions. At M&F Bank, we strive to get you the best rate possible.

Home Equity Loan vs Home Equity Line of Credit

You may wonder about the difference between a HELOC and a Home Equity Loan. Your home secures both and offers unique benefits. Consider your needs and use the following descriptions to decipher which would suit you the best.

Home Equity Loan:

A home equity loan, sometimes called a second mortgage, provides a lump-sum disbursement based on your home’s equity. These loans have fixed interest rates, ensuring a consistent cost throughout the loan term.

HELOC:

A HELOC offers a revolving line of credit with flexible, interest-only payments during the draw period. It’s akin to a credit card, enabling you to access funds as needed and reuse them when repaid.

How to Get a Home Equity Line of Credit

At M&F Bank, we’re more than a financial institution; we’re a local partner dedicated to the well-being of our community. Let us assist you in unlocking the potential of your home’s equity.

Apply for the Empowering Growth HELOC today and make your dreams a reality. Your home is not just where you live; it’s an essential part of your financial journey. Let M&F Bank help you navigate it wisely.

Apply through our secure portal today

Still have questions? Contact a local banker today with the form below.

All M&F Bank home equity lines of credit (HELOCs) are subject to credit approval under the M&F Bank underwriting guidelines including qualifying lines with certain loan-to-value, debt to income and other underwriting criteria. Certain other conditions and restrictions such as repayment selections, lien position, line size, closing costs and other loan guidelines may apply. Annual Percentage Rate (“APR”) shown below is available as of May 1, 2025, to well qualified applicants for variable rate lines of credit in the amount of $20,000 to $250,000 secured by single 1-family owner occupied residential property. This promotion applies only to new lines of credit and is available for single family, owner occupied, primary residence only; excludes investment property, second and vacation homes, condos and residential lots.  Annual Percentage Rate is Prime + .50% or 8.00% APR. To receive this rate, you must take an initial draw at closing from the new line of credit of greater than or equal to $20,000. Each HELOC is subject to a 10-year draw period followed by a 10-year repayment period. Prime rate is a variable rate based on the US Prime Rate published on the first day of each month in the Eastern Edition of the Wall Street Journal. As of May 1, 2025 the Prime Rate is 7.50%. The minimum line size associated with this rate is $20,000 and the maximum line size associated with this rate is $250,000. You are eligible for a rate reduction of 1/8% if payment is set up on automatic draft from an M&F Bank checking account. The maximum rate that can be charged is 16%. Your APR may be higher based on the prevailing variable rate index value. Property insurance and flood insurance where applicable may be required. Closing costs and other fees are estimated to range from $400 to $1,500, depending on the amount of your line. M&F Bank will pay all closing costs not to exceed $1,500 for lines up to $250,000. The combined loan-to-value or LTV ratio (that is the ratio of the debt secured by your residence (including the new HELOC) to the value of that residence) must not exceed 85%. Offer may be withdrawn at any time without notice. Approval is subject to credit qualifications. Consult with a tax advisor to determine whether the interest you pay is tax deductible. NMLS # 728708 

You are now leaving M&F Bank

M&F Bank provides links to web sites of other organizations in order to provide visitors with certain information. A link does not constitute an endorsement of content, viewpoint, policies, products or services of that web site. Once you link to another web site not maintained by M&F Bank, you are subject to the terms and conditions of that web site, including but not limited to its privacy policy.

You will be redirected to

Click the link above to continue or CANCEL