We want to let you know more about the changes you can expect to your Express Equity® Line of Credit account. As a reminder, we have discontinued the product. Per information sent to you in April, you will not be able to make advances from your account beginning February 1, 2017.
What happens in February 2017
Beginning February 1, 2017, you will not be able to make additional advances from your Express Equity line of credit account. As a courtesy, you may continue to make interest-only payments for a limited time.
What will happen to my remaining balance
On the repayment date we provided in the letter we sent to you in April, the outstanding principal balance of your account will convert to an adjustable rate loan that is fully amortized over 25 -years. The rate on the new loan will be calculated by using the same margin over the Prime Rate as the line you have today. If the Prime Rate changes during the course of a year, your payments will be adjusted annually to re-amortize the remaining balance over the remaining term.
You will also have the option to convert from an adjustable, Prime-rate based, loan to a fixed-rate loan. You’ll be able to repay the full loan balance at any time with no fees or penalties.