Closing Costs Waived

You pay absolutely nothing to establish your Presidential Home Equity Line. No closing costs -- no application fee -- no appraisal fee -- no points. This can save you hundreds of dollars!

This no closing cost feature is subject to the terms and conditions of the Home Equity Line Agreement, which require that the line must remain open for a minimum of 42 months and that the finance charges must be at least $1,000 during the period the line is open.

Tax Deductions

Unlike credit card interest and other non-mortgage interest you may pay, you can deduct the interest you pay on a home equity line of credit for federal income tax purposes, subject to the requirements of the Internal Revenue Code.

Drawing Against Your Line

You may draw against your line at any time, simply by writing a check. Free checks are provided.

Eligible Property

Owner occupied and second residences.

Lending Area

Nationwide (state restrictions may apply)

Maximum Loan To Value Ratio

The combined amounts of your first mortgage and the dollar limit on your Home Equity Line may not exceed 80% of the value of your home.

Repayment

Monthly payments are required, whenever the Home Equity Line of Credit has a principal balance outstanding. Principal may be prepaid at any time without penalty. The Line has an initial draw period of 15 years (180 months), during which advances may be made, followed by a repayment period of 8 years and 4 months (100 months).

During the first 180 months of the term of the Home Equity Line of Credit, principal may be advanced and repaid at any time, subject to the approved maximum loan amount. Whenever a loan balance is outstanding, monthly payments of interest are required. After the end of the first 180 months, no further advances of principal will be made, and the line of credit must be repaid over the succeeding 100 months in monthly installments equal to 1% of the principal outstanding at the beginning of this repayment period, plus accrued interest.

Other Terms

All applications are subject to credit approval. Adequate property insurance is required. The minimum draw amount is $100. If you fail to qualify for the waiver of closing costs, you will be charged for your credit report, property appraisal, mortgage recording fees and other out-of-pocket costs of closing your loan; these costs generally total between $250 and $1,550. We will provide an itemization of the closing costs of your loan upon request. For additional information, see the Presidential Home Equity Line of Credit disclosure statement and the Home Equity Line Agreement.

For additional information about Home Equity Lines of Credit:
Read about it at The Federal Reserve Board.

For Home Equity Line inquiries call:  (800) 281-2771, fax: (301) 657-8069 or apply online.

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