Home Equity Loans

Are there any fees or cost to open the loan?

Closing costs are one-time fees charged at the beginning of the loan process. They can include things like appraisal fees, title searches, and document preparation. Chartway will waive up to $2,000 in closing costs with a minimum advance of $10,000. With a HELOC, members can withdraw any amount as needed, and there are no limitations on the number of draws allowed.

 What is the loan to value (LTV)

The LTV is expressed as a percentage between the principal amount of a loan and the appraised value of the asset securing the financing. Chartway will only let you borrow up to 90%  of your home’s appraised value.

How does the 2.99% promotional rate work?

Qualified members receive a 2.99% introductory rate on a Home Equity Line of Credit (HELOC) for the first 6 months. To qualify, at least one borrower must have a FICO score of 680 or higher. After 6 months, the rate adjusts based on current market conditions, credit score, and loan-to-value (LTV) ratio. As of March 1, 2025, the promo can only be used once every 12 months and requires a minimum $10,000 in new funds if refinancing. Closing costs apply when rolling an existing HELOC into a new promotional rate and if it has been opened for less than 24 months.

For a HELOC, is it necessary to advance the full amount?

A HELOC offers flexible access to your funds. You can withdraw only what you need, when you need it. There’s no requirement to use the full approved amount all at once.

You can make multiple draws over time, making it a convenient option for ongoing or unexpected expenses.

 How long does the equity process take?

In general, the process takes about 3 to 4 weeks, depending on several factors like the type of loan you’re applying for, how quickly documents are submitted, and whether an appraisal is needed.             

Once your application is approved and ready to close, we’ll work with you to schedule a convenient and timely closing date, whether in person or with a mobile notary. Your equity solutions specialist will guide you through next steps and make sure you’re prepared for signing.

When will I receive my funds after signing the documents?

After you sign your closing documents, there’s a mandatory 3-business day waiting period before your loan funds are released. This is called the right of recission; it is a standard waiting period that gives you time to review your decision and make changes if needed. Funds are typically disbursed on the 4th business day after closing. Weekends and federal holidays aren’t counted as business days.
 
Why is there a different amount of interest on different payments?

For HELOC’s. interest accrues daily on the balance owed. Most HELOC’s are due on the 25th of the month while your monthly payment calculates on the 1st of every month.  If payments are made consistently on the due date, there likely won’t be a lot of variation. If payments are made on different days month to month or if advances are made, that will cause a variance in how much interest accrues.

Equity loans are similar in that interest accrues daily, and while the amount due does not change, the amount that applies to interest versus principal will vary based on the number of days during the month.

 I made a payment – why hasn’t my payment amount changed yet in online banking?

Your payment amount will update once your account goes through its next scheduled recalculation. This doesn’t happen immediately after a payment is made – it typically occurs at regular intervals. You’ll see the updated amount reflected in online banking after that recalculation is complete.

 What is a balloon payment?

A balloon payment on a HELOC occurs at the end of the loan term when any remaining principal balance, along with interest and late fees, is due. If only minimum interest is being paid during the loan term, the entire principal balance will be owed at the maturity as a balloon payment. It is recommended that members pay more than the minimum required payment each month to avoid a large payment at the end of the term.