Personal Loans, Equity Line of Credit and Mortgages
Merchants Bank: A Mortage Lender that Meets Your Unique Needs
Our Personal Loans offer financing with flexible terms at competitive rates for Auto Loans, Boat Loans, or other personal loans.
Whether you choose to finance a new car, truck, motorcycle, RV, watercraft, fishing trip, computer, furniture, appliances, or to consolidate current debt, choose to finance your personal loan with us. We can customize a loan to fit your specific need! We offer a wide variety of personal loans and can customize a loan product to fit your personal situation.
At Merchants Bank, we've been helping our customers Borrow Wisely for more than 130 years. Knowing when and how to borrow can be a difficult decision. We believe that being informed is key to making wise borrowing decisions. With years of experience, our lending professionals are here to help make your personal loan decision easier and make sure you Borrow Wisely. Apply for a personal loan today!
Your key to smart borrowing may be the equity you have in your home.
A home equity line of credit with Merchants Bank affords you the opportunity to “write yourself a loan” whenever you need to, whether for a new vehicle, a vacation, or a home improvement project. And, the interest you pay, may be tax deductible!* Even better is that Merchants Bank has never had lower rates on home equity loans!
Act now and receive an APR as low as 2.9% for the first 6 months
and 4.00% APR after 6 months.*
Borrow Wisely... You've worked hard for your home. Now let your home work for you!
We offer a line of credit, for convenient and smart borrowing, secured by a second mortgage on your home. Often times it makes more sense to borrow against the equity you have built in your home for expenses such as a new car, college tuition, a new boat, or home remodeling project. The interest you pay on your Home Equity Line of Credit may be tax deductible (consult your tax advisor).
A Home Equity Line of Credit is conveniently accessible through a checkbook. And, because it is a revolving line of credit, each time you make a payment the funds are again available for your use. This type of loan works well for do-it-yourself projects or a series of projects because you only make payments on the money you've already used.
We would be happy to automatically deduct the monthly payment on your line of credit from your checking or savings account so you don't have to worry about remembering to make your payment.
Many of our customers are using their home equity line of credit for smart borrowing. Because we truly appreciate your business, we would welcome an opportunity to discuss with you the many benefits associated with our home equity loan options.
Advantages of a Merchants Bank Home Equity Loan or Line of Credit include:
Flexibility - You can leverage the equity you have in your home to borrow for anything -- a new car, college tuition, a vacation, or a home improvement project.
Convenience - With a home equity line of credit, you will have checkbook access and can "write yourself a loan" whenever you need to.
Tax deductibility - You will want to consult your tax advisor in this regard, but for many customers, the interest they pay on their home equity line of credit loans provides tax advantages.
Low Interest Rates - The current interest rate environment has made home equity loans a very attractive service for hundreds of our existing customers.
Great Service! - As always, a home equity loan or line of credit at Merchants Bank comes with our promise to deliver the highest level of quality service. You'll work with a local mortgage lender you know and trust, and your payments may be made locally.
*Subject to credit approval. As of June 28, 2012, the Annual Percentage Rate on a home equity line of credit with an 80% or less loan-to-value and a credit score greater than or equal to 700 was 4.00%. This special offer has fixed-rate pricing as low as 2.9% APR for the first six months, based on relationship reward discounts. Following that six-month period, the rate will become variable, subject to change, based on U.S. Bank, N.A., prime rate plus a margin that is determined based on the loan-to-value in your home and your credit score at the time of application. Current rates vary from 4.00% to 5.75% APR. Maximum possible APR is 18%. Minimum possible APR is 4.00%. An origination fee may apply, in addition, you are responsible for certain fees to third parties, such as appraisers, credit reporting firms and government agencies, which are generally from $100–$1,000. Following the first year, there will be an annual fee of $25. Offer available on new home equity lines of $10,000 or more only or on existing lines of credit with an increase of at least $10,000. Consult your tax advisor regarding the deductibility of interest expense. Property insurance will be required. Limited time offer.
Use the equity you have in your home to improve your home!
Second mortgages are often the loan vehicle chosen to help finance home improvement projects and Merchants Bank offers a variety of second mortgage options and terms to fit the homeowner's need.
- A Balloon Loan offers a variety of amortization schedules with payments to fit budget.
- An Installment Loan has a fixed repayment schedule over a certain length of time, often three to five years.
- An Adjustable Rate Second Mortgage (ARM), offers an adjustable rate, which may benefit some borrowers.
As a leading mortgage lender, Merchants Bank offers all the options homeowners need. And, interest paid on second mortgages is often times tax deductible. We encourage you to check with your tax advisor to see if you may be able to take advantage of tax savings.
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What is a Home Equity Loan?
A home equity loan can be a great way to get that new roof, finally finish the lower level, to buy a new car or to pay for a college education. A home equity loan can be used for almost any purpose you can imagine. It is simply borrowing money, using the equity in your home to secure the loan, much as a personal loan may use the equity in a car to secure the loan.
There are two types of loans that use the equity in your home as collateral. They are either a Second Mortgage or a Home Equity Line of Credit. Each works differently and which loan type works best for you is often determined by the purpose you have chosen to take out the loan. As a trusted mortgage lender for generations, we can help you determine the best loan type for your needs. The interest rate the bank charges on either of these is determined by the loan type you choose and the Loan-to-Value of your home.
What is a Home Equity Line of Credit?
A Home Equity Line of Credit is a revolving loan that works very much like a credit card. The equity you have in your home secures a credit line with a variable interest rate that is available to you for a certain amount of time (usually ten years). The monthly payments are determined by how much money you owe us, not by how big the line of credit is. As you pay down the amount you owe on your line of credit, the rest is available for other uses. The line of credit works well for do-it-yourself projects or a series of projects because you only make payments on the money you’ve already used.
What is a Second Mortgage?
A Second Mortgage is just that, a second mortgage on your home. Funds are advanced, for qualified borrowers, against the equity in your home. Equity is the difference between the value of your home and any outstanding mortgage loans. Second mortgages can be used to finance just about anything, just like a home equity line of credit. The difference being a second mortgage is a fixed loan amount that is advanced at the time of loan closing, rather than a revolving line of credit like a home equity line of credit.
We'll work with you to determine what type of financing best fits your situation.
You can get a good idea of your home’s value from your Property Tax Statement.
What is Loan-to-Value?
Remember how you figured out your equity? Just add the amount you want to borrow to the unpaid balance of your mortgage then divide that number by the appraised value of your home. The result will be a percentage that is referred to as the Loan-to-Value of your home. The lower the percentage, the lower your interest rate!
Can I borrow more than the value of my home?
While some mortgage lenders offer loans that often will go as high as 125% of your home’s value, we don’t think it’s a good idea. Borrowing in that manner will make it difficult, if not impossible, to sell your home should you want, or need to move. We want to help you Borrow Wisely.
Can I deduct the interest on my taxes?
We’re not tax advisors, but the interest you pay on a Home Equity Loan or Home Equtity Line of Credit is often deductible on your federal tax return. The interest you pay on car loans, credit cards and almost all other loans definitely is not. We suggest you consult your tax advisor regarding interest deductibility.
Please Contact Us if you have additional questions on Home Equity Loans or Lines of Credit.