Orange Home Equity - The Basics
What is the Orange Home Equity?
The Orange Home Equity is a line of credit, a loan, or both. It starts as a home equity line of credit, which is a form of revolving credit with a variable interest rate that uses your home as collateral. At anytime in the first 10 years you have your account, you can convert your line of credit to a fixed-rate loan at no cost to you. So, it has the flexibility and value to meet your needs.
How much can I borrow?
The Orange Home Equity can give you access to up to 75% of the equity in your home, up to $250,000. You earned it, so use the equity you built to consolidate your debt, make home improvements, make purchases, or send your children to college. Your monthly payment will be based on making interest-only payments, but you’ll have the flexibility to pay more as you wish. The Orange Home Equity becomes a fixed-rate loan once you draw as much as you want from the loan or you use the maximum amount we offered you.
If you’re an existing Customer, you can apply in minutes either online or by calling 1-866-746-7595.
Are there any fees or early payment penalties with my Orange Home Equity?
Other than normal closing costs to open your Orange Home Equity, ING DIRECT does not charge fees to use or maintain it. Unlike other banks that charge you for paying off your loan early, there are no penalties for closing your Orange Home Equity. As with most lines of credit, you may be subject to a late payment or subordination charge (a charge for preparing and publicly recording the subordination agreement, which is used to prioritize the lien position of a new loan and an existing loan on a property).
What kind of taxes should I expect to pay?
We want you to know that some state governments do charge a mandatory tax on the full amount of any Home Equity mortgage. This tax is assessed regardless of what bank you work with. These states are:
- Alabama
- Georgia
- Kansas
- Maryland
- Minnesota
- New York
- Oklahoma
- Tennessee
- Virginia
Just let us know and we can pay this tax for you with part of your line of credit. These taxes are based on your home equity's credit limit and can range from $0.10 to $2.10 per $100.00 of the credit limit that is established for you. If you live in one of these states, either ask us what the taxes might be when you apply or check out the estimated taxes on the first page of your application.
What can I do with the funds from my Orange Home Equity?
Whatever you want! With an Orange Home Equity, if, when, and how you choose to spend your money is up to you. It's that simple.
How do I repay my Orange Home Equity?
You can make "interest-only" payments for the first 10 years on your Orange Home Equity. After the initial 10-year draw period, your payments on the remaining balance will include principal and interest based on a 15 year period – meaning if you make the minimum interest and principal monthly payment each month, it will take 15 years for your loan balance to be zero.
Is the interest tax-deductible?
In most cases, yes, the interest on a Home Equity is tax-deductible. However, please consult your tax advisor to be sure.
What is the rate on an Orange Home Equity?
Your Orange Home Equity has a variable rate and is determined based on your credit needs, including the amount you want to borrow, the value of your home and your credit history. Maximum interest rate for the Orange Home Equity is 18%. (Don’t worry, this hasn’t happened in 24 years) and the lowest it can be is 4%.
Is there an annual fee?
No, there is no annual fee with the Orange Home Equity.
What are Closing Costs?
We incur expenses when processing your loan, such as appraising the value of your home and checking your credit; these are third party fees that must be paid at closing. The first page of the Orange Home Equity application can estimate these costs based on your specific details. If you are reviewing offers from other banks, use these estimated costs to compare and make sure you're getting the best deal.