Considering a home equity line of credit (HELOC) in Massachusetts? Salem 5 Bank is currently offering an attractive introductory Annual Percentage Rate (APR) for their Star Home Equity Line. For the first six months, new customers can benefit from a fixed APR as low as 5.99%. After this initial period, the rate becomes variable, pegged to the Prime Rate published in The Wall Street Journal minus 0.50%. As of February 24, 2025, the Prime Rate stands at 7.50%. For the most up-to-date rates, it’s advisable to contact Salem 5 Bank directly at (800) 472-5365.
This home equity line of credit product from Salem 5 Bank Ma comes with specific terms and conditions designed to protect both the borrower and the lender. The Combined Loan to Value (CLTV) ratio is a crucial factor, generally not exceeding 60% of the tax assessed value of the property. For condominiums or townhouses, this limit is slightly more conservative at 50%. However, there is some flexibility, as Salem 5 Bank may permit CLTVs up to 70% (or 60% for condos/townhouses) based on a Salem Five certified property appraisal or an acceptable online statistical appraisal.
It’s important to note when a full, Salem Five certified property appraisal becomes necessary and at the applicant’s expense. This includes situations where the online statistical appraisal is not accepted by either the bank or the applicant, when the requested line amount is over $400,000, or for properties acquired through foreclosure, short sale, or gift of equity. This HELOC is designed for 1- to 4-family owner-occupied residences. Be aware of a $500 early termination fee if the line is paid off within the first three years, along with a $50 annual fee. For larger lines of credit exceeding $400,000, a full appraisal and potentially Title Insurance may be required, and additional fees may apply to properties held in a Trust.
Remember that this offer from Salem 5 Bank MA is subject to change, so verifying the details is essential. Interest on a home equity line of credit may be tax-deductible; consulting a tax advisor is recommended for personalized advice. While the maximum possible APR is capped at 18%, the minimum APR after the introductory period could be as low as 2.75%. Property insurance is mandatory, and flood insurance may be required depending on the location of the property. For complete details and to discuss if this Salem 5 Bank home equity line of credit is right for you, contacting the bank directly will provide the most comprehensive and current information.
