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#57042 - 01/27/03 08:49 PM HELOC - interest only
learning Offline
Junior Member
learning
Joined: Jun 2002
Posts: 30
Our bank is a Virginia Bank. We are considering the possibility of offering a HELOC that is payable, interest only.
1) Do any of you have such a plan?
2) What additional disclosure requirments are there?
3) What should we be leary of other than the possible "evergreen"effect and making sure we track the maturity of the credit line deed of trust that secures the HELOC line?

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General Discussion
#57043 - 01/28/03 03:31 AM Re: HELOC - interest only
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Are you asking only bankers in Virginia?

If not:
1. We see numerous banks that offer interest only HELOC's.
2. No additional disclosures are required because the plan
is interest only.
3. None come to mind.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#57044 - 01/28/03 11:44 AM Re: HELOC - interest only
JMB Offline
Member
JMB
Joined: Mar 2002
Posts: 59
Michigan
Generally, there is a higher interest rate associated with this product (as there is more risk) and the LTV may be reduced as well. Good luck and happy marketing!

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