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Fast Facts about the Home Ownership Accelerator®




Description
Advantage
Loan Type
First-position home equity line of credit
Full-service checking account embedded inside the loan allows all available cash to flow against the balance until needed for investments or expenses.
Deposit and withdrawals
Unlimited. Deposit or withdraw as much and as often as you need using free online bill-pay, ATM/debit Card, electronic fund transfers, checks
With the Accelerator, your deposits go against principal first, unlike traditional home loans. All deposits are credited against your loan balance within one business day.
Interest Rate
Adjustable Rate Loan based on 1-month LIBOR index
According to independent studies, LIBOR is a consumer-friendly index, second only to COFI for long-term stability.  See white paper on adjustable rate mortgages in our News and Views section.
Margins available
Available margins are 2.85%. 3.15%, and 3.35% above 1-month LIBOR. Ask your certified agent about margin pricing.
A lower margin reduces long-term interest costs and accelerates loan payoff and equity build-up. Your agent will present the costs involved for each margin and run a break-even analysis to see which margin works best for you.
Lifetime rate cap
6% over initial interest rate (index + margin)
We do not expect rates to rise dramatically in the near future, but to protect people concerned with rising rates, the Accelerator offers long-term protection with our +6% lifetime rate cap (your loan rate never exceeds the cap).
Minimum credit line
$100,000

Maximum credit line
$2.5 million

Maximum loan-to-value
75% of appraised value

Minimum credit score required
700 (720 in CA, AZ, NV)

States currently available
CA, AZ, NV, UT, OR, CO, WA, MN
Look for new states in late Spring 2010!
Statements
Online banking, and monthly paper statements detail available balance, withdrawals and deposits
You have all the information you need to track balance reduction, interest charges and other expenses, just as with your current checking account. You will also receive a standard tax form 1098 for all the interest paid on the loan each year.

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