Home Equity Lending Center
FAQs
In order to answer any questions you may have regarding Home Equity financing, we've organized some frequently asked questions by category.
For answers to Home Equity questions not found here, call us at
1.800.214.5160, or in the Omaha area at 342.LOAN (5626) - 24 hours a day, 7
days a week. Or e-mail us at HomeEquity@fnni.com.
What is home equity?
Home Equity is your home's dollar value that you own outright. It is the difference
between your home's appraised value and the balance of your mortgage loan. For
example, if your property is worth $100,000 and you have a mortgage for $60,000,
your equity is $40,000.
What is loan-to-value ratio?
Loan-to-value ratio is the total of your mortgage loans divided by the appraised
or tax-assessed value of your property being used as collateral. For example:
| Property Value: | $100,000 |
| Mortgage Balance: | $60,000 |
| Home Equity Loan Amount: | +$20,000 ________ |
| Total Mortgage Loans | $80,000 |
| Loan-to-Value Ratio: | $80,000/$100,000 or 80% |
How much can I borrow?
First National Bank Omaha offers Home Equity Loans and Lines of Credit up to
100% of the appraised or tax-assessed value of your property. The minimum amount
you may borrow is $5,000; the maximum amount is $250,000
What is a Home Equity Loan?
A Home Equity Loan is a loan that uses your home as collateral. A Home Equity
Loan is best when: 1) you have a specific dollar amount you wish to borrow;
2) you want to know exactly what your monthly payments will be; and 3) you want
to know when it will be paid off.
Note: Home Equity Loans are currently available in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Ohio, Wisconsin and Wyoming. Some restrictions apply.
What is a Home Equity Line of Credit?
A Home Equity Line of Credit is a revolving line of credit that uses your home
as collateral. A Home Equity Line of Credit is best when: 1) you don't have
a specific dollar amount you wish to borrow, and 2) you want a reusable source
of cash.
Note: Home Equity Lines of Credit are currently available in Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Ohio, Wisconsin and Wyoming. Some restrictions apply.
Is the interest tax-deductible? *
In most cases, the interest is tax-deductible if the Home Equity Loan or Line
of Credit amount doesn't exceed $100,000 or a maximum loan-to-value ratio of
100%. Please consult your tax advisor for details about your specific situation.
What determines my interest rate?
The interest rate for both a Home Equity Loan and Line of Credit is determined
by creditworthiness, loan term, and loan-to-value ratio. In most cases, the
shorter the term and the lower the loan-to-value ratio, the lower your interest
rate will be.
Is hazard insurance required?
Hazard insurance is required for both Home Equity Loans and Lines of Credit.
Is flood insurance required?
Flood insurance is required for all accounts located in a flood hazard area.
If after you apply we determine flood insurance is necessary, we will notify
you of this requirement.
After I've applied for a Home Equity product online, what happens next?
Your application is evaluated, your credit report will be reviewed and your
income and property value will be verified. A Personal Banker will contact you
to inform you of the status of your application and answer any of your questions.
How do I contact First National Bank Omaha about my application?
You can call us at 1.800.214.5160, or in the Omaha area at 342.LOAN (5626)
- 24 hours a day, 7 days a week. Or e-mail us at HomeEquity@fnni.com.
Is there an application fee?
There is no application fee for First National Bank Omaha Home Equity products.
How do I close my Home Equity Loan or Line of Credit?
You can close at a time and First National Bank location that is convenient
for you. One of our Personal Bankers will confirm the exact time and location
prior to your closing.
After I close, when do I receive my funds?
There is a three-day time period between the time you close and the time your
funds can be released. This time period is known as the rescission period and
is mandated by law. On the fourth business day following your closing, funds
are available.
What documents will I have to sign?
Depending on which state you live in, the documents you are required to sign
varies. In most cases you are asked to sign:
- A deed of trust or mortgage. This document pledges your home as collateral for the loan or line of credit.
- A loan note and disclosure. This is your promise to repay the loan or line of credit.
- A right to rescission form. This explains your right to cancel the loan or line of credit within three business days of signing the loan documents.
- An agreement to provide insurance. This document pledges your home is covered by hazard insurance.
* Please review our Home Equity Disclosures
