Home Equity Financing for Individuals
Home Equity Lines - Finance Your Important Expenses1
Your home is your castle. The equity in your home is also a key resource, there when you need it to finance some of life's larger expenses such as college tuition, debt consolidation, home renovation or even the purchase of a second home.
As an existing CNB client, you can tap the equity in your home conveniently for almost any purpose. Home equity loans and lines of credit can provide you with:
- Potentially substantial financing based on the amount of equity in your home
- Competitive interest rates
- A possible interest tax deduction (consult your tax advisor for further information regarding the deductibility of interest).
Auto-debit Payments Reduce Your Interest Rate
City National extends a 1/4% interest rate discount when you choose to have payments automatically deducted from your City National Bank checking, savings or money market account.
Home Equity - Total Line of Credit
City National's Home Equity Lines give you flexibility with our "Total Line of Credit". With a Total Line of Credit, only use the funds you need when you need them, and only pay interest on the amount you use. Simply write a check, use your optional Equity Credit Card2 or request a telephone transfer for the amount you need.
Revolving Credit for Your Evolving Needs
Because your Total Line of Credit is a revolving line of credit, to the extent you repay the principal amount you've borrowed, that principal amount becomes available again for you to use during the Draw Period. This is an ideal choice for ongoing projects or expenditures.
- Credit lines available from $10,000 to $5,000,000 (if secured by a first lien; maximum reduced to $2,000,000 if secured by a second lien)
- 10-year Draw Period3 on the revolving line with variable-rate4, interest-only monthly payments5
- Fixed-rate "loans within a line" option during the Draw Period with 3- to 15-year terms6
- Replenished credit availability on the revolving line during the Draw Period when fully-amortizing payments are made to a "loan within a line"
- 15-year fully-amortizing revolving-line Repayment Period following the Draw Period
Accessing the Funds is Easy and Private
- Total Line of Credit checks work just like your checking account – only you know it's a loan.
- Additional convenient purchasing power provided with the optional Equity Card. Use it at millions of merchants worldwide.
- Use City National Online to transfer funds from your Total Line of Credit to your checking, savings or money market account.
To learn more, call us Monday through Thursday
7:00 a.m. - 5:30 p.m. and Friday 7:00 a.m. - 6:00 p.m. (PT) at (800) 773-7100, contact us or visit one of our local City National locations.
- Total Lines of Credit are available only as accommodations to established clients. Must be secured by a 1st or 2nd lien on owner-occupied 1-4 family residential properties (excluding mobile homes) in CA, CT, GA, NJ, NV, NY and TN. (Available for co-ops in the New York City boroughs of Manhattan and Brooklyn only.) Subject to credit review and approval. Not all applicants may qualify.
- Available only on lines secured by real property located in California or Nevada.
- 9 years and 10 months in Connecticut.
- Except for the Annual Percentage Rate (APR) on the loan-within-a-line (“installment loan”) feature, Total Lines of Credit have variable Annual Percentage Rates (“APRs”) subject to change daily without notice. The APR is based on highest Prime Rate published in The Wall Street Journal
Money Rates Table (the "Index") each day, plus a margin. The Index as of 07/06/15 was 3.25%. Current variable APRs range from 3.750% to 4.875%. These APRs include 0.25% discount for automatic payment from a CNB checking, savings or money market account; if automatic payment is not selected or is cancelled after the line is opened, the APR and monthly payments will increase. Your APR may change as often as the Prime Rate changes. The maximum APR for lines secured by residential properties in CA, CT, GA, NJ, NV and TN is the greater of 8% over the initial APR or 15%. The maximum APR for lines secured by residential properties in NY is the lesser of 8% over the initial APR or 16%. The minimum APR is 3.50%. Lines are subject to a $65 Annual Fee (waived the first year). A $400 processing fee will apply if title to the residential property securing the line is vested in a limited liability company. A $250 reappraisal fee will apply if CNB reappraises the residential property securing the line after the line is opened. For lines up to $500,000 secured by residential property located in CA, CT, NJ and NV, closing fees and costs range from $0 to $400. For lines up to $500,000 secured by residential property in GA, you must pay GA intangible mortgage tax ranging from $30 to $1,500. For lines up to $500,000 secured by residential property in NY, you must pay the borrower’s portion of the NY mortgage tax ranging from $562.50 to $7,218.75. For lines up to $500,000 secured by residential property in TN, you must pay TN recording tax ranging from $10.20 to $576. On lines over $500,000, closing fees and costs vary and may range from $4,519.00 to $20,003.50 based on the line amount and the state where the residential property securing the line is located, and include any applicable state and local mortgage registration/recordation/intangible/mortgage tax. A $500 Early Closure Fee may apply (except in NY) if the line is closed within 3 years from date of opening. Your APR will be based on the specific characteristics of your credit transaction, including combined loan-to-value, property type, amount of credit and term. Hazard insurance and flood insurance (if the residential property securing the line is located in a special flood hazard area) are required.
- Interest-only payments allow you to pay interest only on money borrowed for a specific period of time. Interest only payments are available only during the Draw Period. At the end of the Draw Period, your monthly payments could increase significantly because you must repay principal and interest, and interest rates may have increased. Interest only payments will not repay the outstanding principal on the line. At end of Draw Period, you will no longer be able to obtain advances and your outstanding variable rate balance will be repayable in 180 monthly payments of principal plus interest.
- APR on the installment loan feature is based on an Index (the U. S. Treasury securities adjusted to a constant maturity of 3, 5, 7 or 10 years rounded to the nearest 1/8th percent, depending on term of installment loan) plus margin. As of
07/06/15 this index ranged from 1.070% to 2.410%. Current APRs for installment loans range from 4.875% to 6.125%. The maximum APR that can apply to an installment loan is 18.00% for lines secured by residential properties in CA, CT, GA, NJ, NV and TN; or 16.00% for lines secured by residential properties in NY. The minimum APR is 3.75% in all states. Minimum installment loan is $10,000. Other restrictions and terms apply. Above APRs are subject to change without notice.