Haven Trust Bank offers home equity lines of credit rather than mortgages. What is a home equity line of credit and how does it work?
A home equity line of credit is a revolving loan using your primary residence as collateral; it is often referred to as a second mortgage. A lien or security interest is taken against the property and is filed with the county at the time you get the home equity line.

Your home equity line of credit is approved for a specific amount; this is your credit limit, which is available at one time or can be drawn against as needed. It works much like a credit card in that once you pay an amount back it is available for you to draw against again.

What factors are considered when someone applies for a home equity line of credit?
Many factors are taken into consideration, including the appraised value of the home and the amount of the existing first mortgage. We look at how much credit a borrower has outstanding and how he has paid his debtors in the past. Applicants at Haven Trust Bank will be asked for current pay stubs, tax returns and a copy of the warranty deed with the legal description of the property, in addition to a loan application.

How does a home equity line of credit differ from a mortgage? Are there any advantages?
A mortgage is primarily used to fund the purchase of your home. The entire amount of the mortgage is advanced at one time, and there are fees associated with it—closing costs. Haven Trust Bank does not charge closing costs with your home equity line of credit. Further, you only pay interest on the amount you use for the time you use it.

An advantage of a home equity line of credit is its flexibility. You can advance it by writing a check, via telephone transfer, overdraft or request by mail or in person. The monthly payments are interest only, but you can pay it off at any time without a penalty.

Haven Trust Bank operates three locations in Atlanta. For more information contact Haven Trust Bank
at 678-957-5500 or www.haventrustbank.