Home Equity FAQs

What is equity?

A simple definition is equity equals ownership. It's the portion of your house that is actually owned by you (not your mortgage company). A more accurate definition of home equity is the difference between your home's market value and your loan balance.

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What is loan to value?

Compares your total loan balances outstanding to the appraised value of the property. For Example: Appraised Value = $100,000 1st Mortgage Balance = 80,000 Loan to Value% = 80%

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How much will I have to pay in closing costs on a home equity line of credit?

Zero.*

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Where do I close my loan?

At a Capital Bank branch convenient to you or through a closing agent's office if a branch is not convenient to where you live.

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Is there an annual fee?

Yes, there is a $50.00 annual fee charged during the draw period. This annual fee is waived the first year.

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How long does it take to close?

Depending on the location of the property it normally can take 2-3 weeks to close on a Home Equity Line of Credit.

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Is there a prepayment penalty?

That depends, based on the loan offered. Your financial advisor can tell you whether there is a prepayment penalty for early payoff on your specific loan.

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Once the loan is closed, how do I get my cash?

There are 4 ways to get your Home Equity Cash:

  • Checks: You will receive checks, which you can use to draw from your Home Equity Cash account.
  • Homeowner's Platinum Card: A Visa® Platinum access card that can be used around the world.
  • ATM: The Homeowner's Platinum Gold Card gets you cash at any ATM in the U.S.
  • Any Capital Bank location: Meet with a loan officer to receive your cash.

Purchases are automatically debited from your line of credit balance.

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Need more info?