Using Your Home Equity as a Bank

Banker Line of Credit (BLOC) Specs

What to Look For:
  • must be an open ended equity line
  • must have an interest only payment option
  • must be attached to the primary residence in a second lien position
  • must be a variable rate home equity credit line
  • must have an credit line amount of $20,000 or more




  • do not
    have your monthly equity line payment automatically withdrawn from a designated checking account

    (your income deposits will be your payment, which will force the bank to adjust your daily minimum balance)

  • do not
    lock-in your equity line rate

    (this will remove the interest-only rate option)

    download this BLOC characteristic sheet to use when shopping for your home equity line of credit

  • important note:
    if you have an existing home equity line the has the above characteristics, it can be used as your BLOC

    if you have an existing home equity loan that is being paid down, shop for an BLOC to payoff and close your home equity loan

    your new BLOC must be in a second lien position
Shopping and Finding Your BLOC:

  1. link to our home equity center
    for more information about home equity product terms and features

  2. download our shopping sheet
    that lists the BLOC characteristics and helps you shop lenders for best terms

  3. use our LTV calculation to estimate how much
    you may qualify. You will need a credit line of $20,000 or more. Be prepared to get a 100%LTV equity line if needed to payoff existing debt and maintain an open credit line of $20,000 or more

  4. use our network of lenders to shop your BLOC
    be prepared to negotiate best terms and rates

    note: don't get hung up on interest rate. The MMA program will minimize the interest rate charges since income going into the account will keep the average daily balance down

  5. use your BLOC to consolidate and payoff all of your debts. This will free up discretionary income that will be used to pay down your BLOC
 

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