Webster Bank, National Association, hereafter referred to as “Webster” or “Webster Bank.” The words “You,” “I,” and “Your” mean anyone who applies for a Webster Bank Home Equity Line of Credit or Loan. Please note that “APR” means “Annual Percentage Rate.”
All lines of credit and loans are subject to credit approval. Consult your Webster banker for details. Offers valid for applications received during the period cited on email and/or direct mail.
1PRE-QUALIFICATION TERMS AND CONDITIONS You were selected for this offer based on information contained in a credit report prescreen. You received this offer because you satisfied the criteria for creditworthiness. Credit may not be extended if, after acceptance of this offer, you do not meet the criteria used to select you which are: a) This offer is valid for the named individual(s) who are of legal age and who were sent this offer. This offer may not be transferred or assigned; b) This offer is not valid for individuals who are foreign nationals; c) This offer is conditioned on a satisfactory review of your credit report and a minimum credit score of 680; d) Final approval for this firm offer of credit is subject to verification of employment, income and qualifying debt-to-income ratio; e) In order to verify that you meet the criteria used to select you for this specific offer we will require documentation in order to establish eligibility; and f) Federal law requires us to obtain, verify, and record information that identifies you. We will ask for additional information or identifying documents to satisfy these requirements. Not all applicants will qualify for the lowest rate.
2RATE AND OFFER INFORMATION:
HOME EQUITY LINE OF CREDIT: The Webster Home Equity Line of Credit APR is a variable rate and will be based on the highest Prime Rate + 1.24% (the Prime Rate is currently 8.50% APR as of 7/27/2023, which is the highest U.S. Prime Rate as published in The Wall Street Journal ). The Prime Rate + 1.24% rate is available for customers opening home equity lines of credit for $50,000 or greater and meeting product credit qualifications covered below, and assumes less than or equal to 80% CLTV. Other rates and terms are available for customers who do not meet the Prime + 1.24% requirements. As an example of payment, a 30-year line of credit of $50,000 at 9.74% APR would result in a monthly interest-only payment of $405.83; a 30-year line of credit of $50,000 at 11.24% APR would result in a monthly interest-only payment of $468.33. As of 7/27/2023, rates ranged from Prime + 1.24% to Prime + 2.74%. Maximum rate that can apply is 18% APR. Minimum rate that can apply is 3.50% APR. Principal balance will not decrease if interest-only payments are made. The monthly payment will increase once the line draw period (10 years) ends since new payment will include principal and interest.
HOME EQUITY LOAN: The Webster Home Equity Loan Annual Percentage Rate (APR) quoted in this mailer is available for customers closing home equity loans for $50,000 or greater and meeting product credit qualifications covered below and assumes less than or equal to 80% Combined Loan to Value (CLTV). Other rates and terms are available for customers who do not meet these requirements. As an example of payment, a 10-year loan of $50,000 at 6.24% APR would result in a monthly payment of $561.15 and a 10-year loan of $50,000 at 7.24% APR would result in a monthly payment of $586.75.
Rate Discounts—Minimum rate is 3.50% APR.
(A) A 0.25% interest rate reduction will be applied to your Home Equity Line of Credit or Loan when Automatic Loan Payments (ALPA) are set up from a Webster Personal Checking account.
(B) A 0.25% interest rate reduction will apply for possessing a Private Checking account. Minimum opening deposit of $25 is required. You can avoid the $30 monthly maintenance fee by keeping $25,000 in checking or $50,000 combined deposit balances, including CD’s, OR $100,000 in investment balances (Please note: it can take 14 days for balances of new or previously unlinked LPL accounts to be included). Private Checking earns interest and is a tiered rate product. The APY (Annual Percentage Yield) for Private Checking as of 7/31/2023 on balances between $0 and $49,999 is 0.01%, balances between $50,000-$99,000 is 0.01%, balances between $100,000-$249,000 is 0.01%, balances between $250,000-$499,999 is 0.01%, balances $500,000 or greater is 0.01%. The APY is subject to change at any time. Fees may reduce earnings.
(C) A 0.25% interest rate reduction when the Home Equity Line of Credit or Loan is in first lien position.
(D) Other rate discounts may apply.
Appraisal: An appraisal will be required to assess the value of the home. This value will represent the full value of the home that Webster will use for calculating the CLTV amount, which will impact the rates and lending options available.
Restrictions: Home Equity Lines of Credit and Loans are available in CT, NJ, MA, RI, and NY, with a minimum of $10,000 and maximum of $500,000 in CT, NJ and RI, and up to $750,000 in MA and NY. For owner-occupied properties with line or loan amounts up to $500,000, there are no closing costs apart from hazard insurance, which is required. For line or loans amounts more than $500,000, certain borrower paid fees will apply. Flood insurance is required, if applicable. There are no fees or costs retained by Webster Bank. Certain fees or taxes may be required, such as a Structural Engineering Assessment Report (CT only) or a transfer tax, and the borrower would be required to pay for this as part of the loan process. Line or loan amounts over $250,000 may be subject to asset verification.
This offer is only valid for owner-occupied 1-to-2-family homes and condominiums. This offer is not valid for investment properties, second homes, 3-to-4 (or more) family homes, co-ops, or high-rise condominiums.
Prepayment: FOR LINES OF CREDIT: A prepayment penalty of $450 will apply if the line is closed within 3 years of opening for lines in CT, NJ, MA, and RI. For lines in NY, a prepayment penalty of $1,000 – $5,000 (based on line amount) will apply if the line is closed within 3 years of opening.
FOR LOANS: A loan prepayment fee is applicable during the first 3 years of the loan. It is a percentage of outstanding principal balance as follows: 2% the first year, 2% the second year, or 1% the third year. The loan prepayment fee can be waived when Automatic Loan Payments (ALPA) are made from a Webster Personal Checking account.
Other Rates: Interest rates are determined based on credit qualifications and other factors, such as line or loan amount, Combined Loan to Value (CLTV), and Webster relationship. The APR you will receive is dependent on a variety of factors including household income, debts, and other underwriting criteria. FOR LINES ONLY: Minimum line amount of $10,000. A $50 Annual Fee is assessed to all accounts, but will be waived for Private Checking account customers.