TD Bank is one of the 10 largest banks in the US, offering just about every financial product — credit cards, checking accounts, CDs, mortgages, home equity loans and home equity lines of credit and more — to nearly 10 million customers. The bank is headquartered in Cherry Hill, New Jersey, and operates more than 1,100 branches in the Northeast, Mid-atlantic, the Carolinas and Florida.
TD Bank: At a glance
| Types of home equity loans | Home equity lines of credit and home equity loans |
|---|---|
| APR | As low as 6.24% for HELOCs greater than $200,000 on primary and secondary homes (higher rates for smaller amounts); as low as 6.89% for 30-year home equity loans between $100,000-$499,999 |
| Loan amounts | $10,000 minimum for home equity loans; $25,000 minimum draw for HELOCs (additional terms and conditions apply to loans greater than $500,000) |
| Credit score requirements | Not specified, though the bank’s online tools suggest that borrowers will need at least a 660 credit score |
| Repayment terms | 10-year draw period and 20-year repayment period with HELOCs; 5-, 10-, 15-, 20- and 30- year options on home equity loans |
| Average time to close | N/A |
Closing a home equity loan with TD Bank requires your in-person presence; it can’t be done online. With that in mind, TD Bank is best suited to customers who live near one of the bank’s 1,100-plus branches along the East Coast.
Before you decide to tap into your home equity with a loan from TD Bank, consider these major pros and cons.
What we like
- Fixed-rate flexibility: You have the option to convert a portion of your HELOC to a fixed-rate loan.
- Available on just about any kind of home: You can borrow against equity on primary and second residences and investment properties.
- Extra savings for existing customers: You can reduce your interest rate by 0.25% when you use autopay with a TD checking or savings account.
What we don’t like
- Extra costs: $99 origination fee on both products, plus a $50 annual fee on HELOCs.
- In-person closings: You’ll have to go to a physical bank branch to close a home equity loan or a HELOC with TD Bank.
- Complicated tiered rate system: TD Bank’s rates depend on a range of factors including how much you borrow, how long you take to pay it back and property type.
Home equity loan options
Home equity line of credit: TD’s HELOC option requires a minimum amount of $25,000, although you’ll only pay for what you use. In the first 10 years, you can draw down the amount and opt to only pay the interest charges. Then, you’ll have a 20-year repayment period. TD does offer the option to convert up to three portions of your money into fixed-rate loans, essentially locking in your interest rate to avoid paying higher charges. The amount converted to a fixed rate must be at least $5,000. You’ll pay a $50 annual fee on a HELOC at TD Bank, or you can choose to waive the fee for a higher interest rate.
Home equity loan: TD’s fixed-rate home equity loans require a minimum amount of $10,000. You’ll get the money in one lump sum, and you can choose to pay it back in five, 10, 15, 20 or 30 years.
With both of TD’s home equity products, rates vary based on the amount you’re borrowing and the type of property. Both also come with a $99 origination fee — a common fee required to start a new loan application.
Fees
TD charges a $99 origination fee on its home equity lines of credit and home equity loans. HELOCs come with a $50 annual fee, although you can waive the annual fee in exchange for a higher APR.
There are other costs to consider, including an appraisal to verify the home’s value and subordination and recording fees. If you want to reduce your HELOC, it’s $35. And if you pay the HELOC off early, you’ll have to pay an early termination fee, which can be as much as $450.
How to qualify
While TD Bank doesn’t publicly list its credit score requirements online, the bank’s personalized rate-matching tool indicates that borrowers will need at least a 660 credit score. Additionally, your combined loan-to-value ratio with your current mortgage cannot exceed 89.99%. For example, if your property is worth $400,000, your total new debt needs to be less than $359,960.
Getting started
There are plenty of ways to get your application started: online, phone or in-person at a TD Bank branch. The best way to estimate your terms – so you can compare with other lenders easily – is to use the bank’s personalized rate tool. Provide a few pieces of data about your property value, outstanding debt, credit score and property type, and the calculator will display a range of options with monthly payment terms.
If you initially satisfy TD’s requirements, a loan advisor will reach out to you to let you know if you need to schedule an appraisal with an interior inspection. Then, you’ll move into the full underwriting process, which includes a thorough review of your finances to verify that you can pay the loan back. When it’s finally time to close, you’ll sign all your documents in person at a TD branch.
Customer service
You can reach a TD Bank home equity lending specialist by calling 800-815-6849. The bank also offers customer assistance via direct message on Twitter and Facebook Messenger, although it’s unclear when these channels are open for communication. If you prefer in-person assistance, use the bank’s website to find a branch near you. Keep in mind that hours vary by location.
TD Bank: 2022 Home Equity Review – CNET
Source: Media Star Philippines
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