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Home Equity Loans

Whether your plans are to purchase a new car, redesign your kitchen, or to pay off higher interest debt, Old Fort Bank is here to provide options. With a little planning, interest comparison and an Old Fort Bank Home Equity Loan or Line of Credit, your next major purchase or project can bring you closer to reaching your financial goals.

The Old Fort Banking Company offers two kinds of home equity products. 

  • Fixed Rate Loan
  • Equity Lines of Credit

The Fixed Rate Loan is a traditional second mortgage loan. This type of loan provides you with a fixed amount of money to use at your discretion.  A fixed monthly payment amount is scheduled until the maturity date of the loan is reached.  Why would you select this type of loan?  You may consider this loan if you have a specific purpose for the loan such as an addition to your home.

The Home Equity Line of Credit is a form of revolving credit in which your home serves as collateral.  Your home is often considered your most valuable asset. Many homeowners use the home equity line of credit for only major expenses, such as: home improvements, college education, medical bills or to purchase a car or recreational vehicle at a lower rate of interest.  You will be approved for a specific amount of credit. The credit limit is set by taking a percentage of your home’s appraisal value and subtracting the balance you owe on your home.  For example:

Appraised Value of Your Home:   $100,000.00   
Percentage    x           75%
Percentage of Appraised Value =  $75,000.00
Less Balanced Owed on Mortgage -   $40,000.00
Calculated Line of Credit $   35,000.00

This is typically a variable rate based on a publicly available index.  A ceiling or cap on how much your interest rate may increase over the life of the loan is also set. You can access your line of credit by check or across the counter at your local Old Fort Bank Financial Center. 

Please remember you may put your home at risk with this type of lending if you fail to repay the amount you borrowed, plus interest.

For more information please contact our Consumer Banker.