How Is Interest Calculated on a FlexFirst HELOC?

The interest rate on a FlexFirst HELOC is variable, meaning it may increase or decrease based on market conditions. Your rate is determined by the 30-day average Secured Overnight Financing Rate (SOFR), a benchmark set by the New York Federal Reserve based on the cost of overnight borrowing. Interest is calculated daily on your outstanding loan balance, so any reduction to what you owe has the potential to lower your interest charges and may help accelerate your payoff timeline.

A FlexFirst HELOC offers a smarter way to borrow against your home’s equity. It’s a First Lien HELOC that combines your primary mortgage and a Home Equity Line of Credit that is integrated with an FNBA checking account equipped with a sweep feature. This unique feature is what sets the FlexFirst HELOC apart from a normal home loan.

At the end of each day, any funds remaining in your FNBA checking account are applied automatically after expenses to reduce the outstanding balance of your FlexFirst HELOC loan. The HELOC portion of the loan can be used to pay your daily and monthly expenses by using the debit card associated with your account or setting up bill pay just like you would with a stand-alone checking account.

The sweep feature of a FlexFirst HELOC provides a unique opportunity to pay off your home faster and may significantly reduce the amount of interest you pay over the life of the loan. The HELOC portion of the loan provides you with ongoing access to the equity in your home that you can utilize to cover your expenses as needed.

Designed for financially disciplined borrowers, the FlexFirst HELOC allows your money to work around the clock to maximize your finances. Whether your cash flow is steady, seasonal or somewhere in between, leveraging your homes equity is easy one account, zero wasted potential.

Learn More: https://www.fnba.com/mortgage/flexfirst-heloc/?utm_source=long_form_flexfirst_heloc&utm_medium=youtube

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