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HOME EQUITY |
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Merrill Lynch's home equity line of credit for Texas homeowners, known as the Equity Access® Texas account, offers an adjustable-rate revolving line of credit to help you meet your personal credit needs by leveraging the equity in your home. You can benefit from potential tax deductions1, and with a revolving line of credit, you simply draw or replace funds at your convenience without incurring unnecessary interest expense.2
Is a home equity line of credit right for me?
If you need a ready source of potentially tax-deductible funds for personal credit needs, you should consider a home equity line of credit. An Equity Access® Texas account can act as a single-source, personal credit management tool. It offers the ease and convenience of paying and tracking all your personal credit expenses from one account.
A home equity line of credit gives you cash flow flexibility to help you meet your present and future credit needs such as:3
- Paying off costly consumer credit, such as credit cards and personal loans.
- Debt consolidation.
- Funding home improvements, such as remodeling, redecorating, and landscaping.
- Financing major purchases, including cars and boats.
- Cash for repair bills, utility bills and even tax bills.
- Meeting the ever-increasing costs of higher education.
- Future needs.
You also benefit from lower payments and interest expenses. Because a home equity account is secured credit, it typically offers a lower interest rate than unsecured credit cards and personal loans.
What are the features of an Equity Access® Texas Credit Line?
- 30-year adjustable-rate loan with a 10-year revolving period followed by a 20-year amortized payback period.4
- Interest-only payments available during the initial 10-year revolving period.5
- Competitive rates.
- No upfront fees.
- No lender closing costs.
- No annual fees.
- No prepayment penalties.
- Credit access via personal checks, wire transfers and cashier's checks (where applicable).
- Line amounts up to $1 million (minimum loan amount $50,000).
1Merrill Lynch does not provide specific recommendations on tax issues. Consult your tax advisor regarding the deductibility of interest expense. Interest expense may not be deductible for all taxpayers.
2No initial loan advance (draw) is required at account opening. However, all draws must be equal to or greater than $4,000 and may only be accessed via personal checks, cashier's check or wire transfer. If the principal balance owed is more than 50% of the home’s fair market value on the date of the original loan, no additional advances can be made until the principal balance drops below 50% of that value.
3Equity Access® account funds may not be used to purchase, carry, or trade securities or to repay debt incurred to purchase, carry or trade securities.
4Click here for Important Loan-Cost Disclosures.
Property insurance is required to establish and maintain your line of credit. The maximum loan-to-value for the Equity Access® Texas line of credit is 50% and the maximum combined loan-to-value when there is an existing first mortgage product is 80% loan-to-value (the credit line still cannot exceed 50% loan-to-value). The line will be revolving for the first 10 years with interest-only payments adjusting based on prime, followed by a 20-year amortizing payback period adjusting every 6-months based on prime. No purchase money mortgages available.
5This is an “interest-only” mortgage that allows you to pay only the interest on the money you borrow for a certain number of years. If you only pay the amount of interest that’s due, once the interest-only period ends, you will still owe the original amount you borrowed and your monthly payment will increase – even if interest rates stay the same – because you must pay back the principal as well as interest. You should ask what the payments on your loan will be after the end of the interest-only period. If you are considering an adjustable-rate mortgage, ask what your payments can be if interest rates increase.
MLCC reserves the right to reduce or suspend your Equity Access credit limit in the future for reasons set forth in your loan agreement, including but not limited to a significant decline in the value of your property or a material change in your financial circumstances.
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