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The Gift of Low Interest Rates

It’s that time of the year when everyone’s wish lists come out. Coincidentally, so do hundreds of coupons, one-day specials, and markdowns. Anything and everything that can motivate you to make sure that there’s abundance under the tree is out there. To steer clear of a holiday financial hangover, open up a home equity line of credit (HELOC) before the spending spree begins.

A Home Equity Line of Credit is a type of home equity loan that operates like a revolving line of credit, meaning you save money by paying interest only on what you need. If you overspend on gifts by $1,000, you only need to tap $1,000. However, if your spending has made your balance sheet look more like the red in Santa’s costume, you don’t need to go to the North Pole to find more funds.

Compared to credit card rates, HELOC interest rates are much more affordable. Although rates may increase, the interest you pay may be tax-deductible, further lessening your net costs. Ask your tax specialist about potential deductions for the interest you pay and use this type of loan to get the most out of the equity in your home. Call or visit an FSB branch near you to take advantage of the new FSB HELOC with an introductory rate of 3.49% APR* for 12 months. Farmers State Bank will work with you to address your short-term financial needs and set up the best loan for you and your family.

**APR- Annual Percentage Rate. A late fee will be assessed if payment isn’t received 15 days after the ‘payment due date’ on your periodic statement. The late fee will be 5.0% of the unpaid amount or $15.00 whichever is less. An appraisal may be required. The term of the loan is for 15 years. Interest is only paid on the amount borrowed. The minimum monthly payment is $100.00 or the full balance if remaining amount is less. The periodic rate and the corresponding Annual Percentage Rate are based off the Wall Street Journal Prime Rate (The index). In no event will the periodic rate or corresponding APR go below 4.990% or more than 18.00% after the initial 12 mo. fixed rate of 3.49% APR. Example: $10,000 for 15 years at 3.49 APR the monthly minimum payment would be $130.00. Lending amount not to exceed 90% of the homes assessed value. Rates subject to change. Effective 12/1/2011