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SmartLock™ - Home Equity Line of Credit
Need extra money for home improvements, tuition, vacation, or consolidating credit card payments? Or, do you just want the peace of mind knowing that you have access to cash for unexpected expenses?
You can use Orrstown Bank’s SmartLock™ two ways. Use it like a variable rate line of credit or lock in a portion with a fixed term and fixed monthly payments.
Your Money
SmartLock™ gives you the flexibility to use the equity in your home to have cash on hand when you need it. Plus, as you make payments, the money becomes available again in your line of credit. You can use your Orrstown online banking or Orrstown checks to spend your SmartLock™ money.
Your Control
Our SmartLock™ gives you the best of both worlds. You can use it like a line of credit and only pay interest on the portion you borrow with a variable interest rate. Or, you can lock in a portion of your line and pay it off at a fixed rate with fixed monthly payments. You only pay interest on the portion you borrow.
4.35% Introductory APR 1
6-MONTH INTRODUCTORY RATE
7.75% APR 1
VARIABLE AFTER THE FIRST 6 MONTHS
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Benefits
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No application fees -
Only pay on the amount you borrow -
The interest you pay may be tax deductible 2 -
Competitively low interest rates
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Easy payment options
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Easy access to funds
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Can be used as overdraft protection on your Orrstown checking account
How it Works
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When you’re approved for a SmartLock™ line of credit, you have the option to draw on your line of credit or lock in portions just like a fixed rate, fixed term loan.
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SmartLock™ lines of credit can be as low as $5,000.
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You can use money from your SmartLock™ for up to 10 years.
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As you repay the money you've used, the money becomes available again on your line of credit.
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You can lock in up to 5 portions of your line of credit and pay them off at a fixed rate with fixed monthly payments.
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The minimum amount to lock in is $5,000.
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Each portion can be locked in for up to 20 years.
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There is a $50 fee for each portion locked and a $75 fee to unlock a portion.
Should you consolidate your debt? Click here to use our calculator to determine if this is the best option for you.
1 Offer valid on new SmartLock™ customers only with a minimum line request of $5,000 and automatic loan payments. If automatic loan payments are canceled, the introductory rate ends. Refinanced SmartLock lines of credit do not qualify for the introductory rate. Borrower(s) must also meet certain credit score and loan-to-value (LTV) requirements to receive introductory rate. Introductory 4.35% Annual Percentage Rate (APR) is effective for initial 6 months of the loan.
After the introductory period, the rate converts to a variable (“permanent rate”). The permanent rate will vary with Prime Rate as published in the Wall Street Journal (the index) plus a margin. The APR will never exceed 18% or go below 3.25%.
As of 05/03/2023, the variable APR ranges from 7.75% to 12.00% for properties in Pennsylvania and West Virginia; the variable APR ranges from 8.00% to 12.25% for properties in Maryland. APRs advertised are based on a minimum credit score of 740, maximum loan-to-value (LTV) ratio of 80%, and a minimum line of credit amount of $100,000. APRs advertised also include “auto pay” discount of 0.75% for setting up automatic loan payment (at or prior to HELOC account opening) and maintaining such automatic payments from an eligible Orrstown Bank deposit account. A higher APR may be applied for loans with lower credit scores, higher LTV ratios, loan amounts less than $100,000 and discontinuance of auto pay.
All SmartLock™ accounts have a 10-year interest-only draw period, followed by a 20-year repayment period. Your monthly payments may increase, possibly substantially, once your credit line transitions into the repayment period. Fixed Rate / Fixed Term Advances under a SmartLock™ account are subject to different pricing. There is a $50 fee for each rate lock and a $75 fee for each unlock. Lock must be in place for a minimum of 12 months before it can be unlocked. This product requires proof of active homeowner’s insurance policy. For properties in Pennsylvania, a recapture fee of $250 applies if you close the account within 24 months of account opening. For properties in Maryland, certain taxes associated with the line will be paid by us at closing; you will be responsible for reimbursement of those taxes if you close your account within the first 24 months of account opening. Other standard underwriting criteria apply. Terms and conditions of this offer are subject to change without notice. We reserve the right to withdraw this offer at any time. Contact us for properties outside this area.
2 Consult with a tax advisor
Orrstown Bank has always been wonderful to deal with. I enjoy doing business with them. Keep up the good work Orrstown employees!
- Marlin W.
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