Lock in on Your Opportunity
Through your equity line of credit at TowneBank, you may have funds available for a Towne LineLock. A LineLock uses the remaining equity on your existing line of credit to fund fixed payment, shorter-term, new credit advances attached to your line.
Lock in Your Best Rate
- Refinance automobile, tuition or other personal loans at a lower monthly payment
- Effective January 2014, fixed rates range from 3.24% to 4.49% APR for terms from 6 to 84 months
All rates, terms and conditions are subject to change without notice. Please contact a TowneBank office for the APR currently in effect.
- Interest may be tax deductible (consult your tax advisor)
Lock up Only What You Need
- Open up to five LineLocks at any time under your line of credit, each with a minimum advance of $2,500
- Free up additional funds as you pay down your line balance
- Pay off any LineLock with no prepayment penalty
- A $100 conversion fee accompanies each lock and can be financed from the line
Contact your hometown banker to lock in your opportunity!
Towne LineLock Key Facts and Disclosures
The LineLock feature is available to all equity line of credit (“Credit Line”) borrowers in products that are not rate-tiered. Any portion locked in to a Fixed Rate Advance will enjoy the fixed rate established at the time of conversion for the requested duration of the LineLock. Fixed Rate Advances may include credit line draws made in the thirty calendar days prior to a LineLock request. LineLocks are not available during any period when the Credit Line is placed in stop-draw status, and cannot exceed the maturity date of the Credit Line.
Rate Determination. The fixed rate will be determined as follows: the Annual Percentage Rate (APR) for a Fixed Rate Advance will be the highest prime rate published in the Wall Street Journal that is in effect on the date of conversion plus or minus a margin between 0% and 5% added to the value of the index. The maximum APR on a Fixed Rate Advance will never exceed 16% or the maximum allowed by law, whichever is less. Periodically, a special Fixed Rate Advance introductory rate may be offered to apply to any Fixed Rate Advance that meets the criteria for the promotional offer. Such an introductory rate will be based on the above index plus or minus a margin set by the Bank. You should contact a TowneBank branch office for the APR currently in effect.
Complete Election Form. In order to exercise the option to convert to a fixed APR, you must sign and return to us an Equity Line of Credit Conversion Election Form (“Election Form”). The Election Form will set forth the principal amount, fixed APR, term (in months), the number of monthly payments and the amount of each monthly payment applicable to the Fixed Rate Advance.
Minimum Monthly Payments. At the time you exercise the option to convert to a fixed APR, we will determine a minimum monthly payment applicable to that Fixed Rate Advance in equal monthly installments of principal and interest over the term of the Fixed Rate Advance. If you have more than one Fixed Rate Advance outstanding, you will have to make minimum monthly payments with respect to each Fixed Rate Advance. The minimum monthly payments due with respect to Fixed Rate Advances will be in addition to the Minimum Payment due with respect to any balance under your Credit Line subject to a variable APR.
Interest Rate Risk Notification. Each LineLock will receive a fixed APR for a specified term as designated on your signed Election Form. Outstanding Credit Line balances that are not fixed under a LineLock have a variable APR. Due to fluctuating market conditions, it is possible that the variable APR on your Credit Line may be less at certain times than the fixed APR on your LineLock(s). It is possible to convert LineLock advances back to revolving interest-only balances at any time without a fee.
Consult your tax advisor regarding the deductibility of equity line usage.