CHOICEquity Home Equity F A Qs
Have questions about a home equity line of credit? We have the answers to help you make the most of your home's equity.
What is an M&T CHOICEquity Account?
The M&T CHOICEquity Account is secured by your home and turns your home's equity into a line of credit you can use for virtually any purpose. Use as much or as little of your line as you need – for home improvements, debt consolidation, education expenses or other major purchases such as a car or even a vacation.
With M&T CHOICEquity, you can:
- Use your account as a revolving line of credit for 10 years, known as the "draw period." Then take up to 20 years to pay off any outstanding balance (repayment period)
- Convert some or all of your balance to a fixed-rate loan within your CHOICEquity Account – select a loan term from 1 to 25 years
- Choose to have as many as 3 fixed rate loans, in addition to your line of credit, at any time
- Decide how you'll make your payments – interest-only or principal and interest payments – while you're using your line of credit during the draw period
What is equity?
Equity is the difference between the current value of your home (known as the fair market value) and any remaining mortgage or loan balance.
Equity = Your home's value - Remaining mortgage balance(s)
How do I calculate my available equity?
1. Estimate the current value (or fair market value) of your home and multiply it by 85.99% (60.99% for a vacation home).
2. Then subtract any mortgage balance(s) you have on your property.
3. The result is the amount of equity that the M&T CHOICEquity Account could make available to you.
What property types are eligible for M&T CHOICEquity?
Single family primary residences, vacation homes, manufactured homes, condos and townhomes. If you're not sure that your residence meets these definitions, call us at 1-800-724-3222 or visit a branch to discuss.
What is a repayment period?
The repayment period begins when your draw period ends. During the repayment period, you pay off any remaining balance by making principal and interest payments. The CHOICEquity Account features a 20-year repayment period. When your account enters the repayment period, you no longer have access to the CHOICEquity revolving line of credit.
How do I lock in a fixed rate and payment while using my CHOICEquity line of credit?
You can use your CHOICEquity as a line of credit during the 10-year draw period. Or, if you like the idea of a fixed rate and a dependable monthly payment, we make it easy to lock in a rate on a balance – you can do it by phone or at a branch – with no reapplying, additional paperwork or approvals needed.
How many times can I request a fixed rate on all or some of my CHOICEquity balance?
During your draw period, M&T Bank's CHOICEquity Account allows for up to three fixed-rate, fixed-term loan segments at any one time. Depending on the loan term you select, the payment period of your loan term(s) may extend beyond the draw period. You can request as many fixed-rate loan segments as you like during the draw period, but you can only have up to three at one time.
What is a variable rate?
A variable rate is an interest rate that changes periodically in relation to an index. Payments may increase or decrease according to how the index fluctuates. For example, the M&T CHOICEquity Line of Credit has a variable rate that is based on the Prime Rate, as published in The Wall Street Journal.
Will I be required to pay any fees when I open an account?
No, however, if you close the account within 36 months after the date it is opened, you must reimburse us for certain fees we pay to third parties in connection with opening the account. Reimbursement of fees does not apply to accounts secured by properties located in the state of Pennsylvania.
Where will the closing take place for my M&T CHOICEquity Account?
During the closing, you will sign all of the necessary documents. You may also be required to provide items for documentation, such as proper identification and your updated Homeowners Insurance Policy.
How do I access the money available in my M&T CHOICEquity Line of Credit?
Can an M&T CHOICEquity Line of Credit be linked to my checking account as a form of overdraft protection?
No. The M&T CHOICEquity Line of Credit cannot be used for overdraft protection.
As payments are made to my M&T CHOICEquity Line of Credit, do funds become available to use again?
Yes, as long as you make principal and interest payments on your line of credit, you can use the funds again during your draw period up to the original credit limit.
How do I determine the payoff amount on my M&T CHOICEquity Account?
For the most accurate payoff amount, please call us at 1-800-724-6444 and we’ll be happy to assist you.
Where do I mail my M&T Home Equity or Line of Credit payments?
Please mail payments to:
P.O. Box 62146
Baltimore, MD 21264-2146