Do you have a balance on your credit card?
Did you know the average Annual Percentage Rate (APR) on a credit card balance is 16% whereas the current APR on the HELOC you have from Mascoma Bank is only 3.50%?
But what does that mean in dollars and cents?
If you have $10,000 in credit card debt, and you pay $167 a month, it will take you 10 years to pay that off and cost you a total of $20,101.
With your Mascoma Bank HELOC you can pay off your credit card debt immediately and then if you pay that same $167 per month, you could be free of that whole $10,000 debt in only 66 months!
And you will pay only $1,006 in interest compared to $10,101 you could pay to the credit card company!!! We’re pretty sure you could think of plenty of things to do with that money other than giving it to them. Plus you could pay off this debt four and a half years faster by financing it with your HELOC.
*These numbers are for example only, please contact a Mascoma Banker to find out how much you can save.
All applications subject to individual approval. This line of credit will be secured by an interest in your real estate. The annual percentage rate will not go below 3.500% or above 18.000%. Property Insurance is required. No prepayment penalty. Third party fees generally range between $0.00 and $1050.00. Annual fee $59.00 during the draw period. Loan has a 10-year draw period, then a 15 year period at a fixed rate based on prime at that time. Variable rate during the 10-year draw period adjusts as follows: the contract rate will be The Wall Street Journal Prime Rate -.25%(as of 10/14/2021, prime rate was 3.25%). Consult your tax advisor regarding interest deductibility.