FAQ | Home Equity Line of Choice | HSBC
Home Equity Line of ChoiceSM FAQs
Answers to your questions about Home Equity Lines of Credit
How do I apply for an HSBC Home Equity Line of ChoiceSM?
It's easy: call us at 800.62.APPLY (27759).
How is a Home Equity Line of ChoiceSM different from a standard Home Equity Line of Credit?
Home Equity Line of ChoiceSM gives you the flexibility of a line of credit with the security of a fixed-rate loan1. If you are concerned about rising rates, you have the option to request all or a portion of the outstanding balance be set up as a fixed-rate loan.
How many fixed-rate loan segments can I have with my Home Equity Line of ChoiceSM?
You can have up to three fixed-rate loans at one time.
How do I request a fixed-rate loan segment from my Home Equity Line of ChoiceSM?
It's easy: just contact an HSBC Mortgage Professional at 866.435.7097 and let one of our representatives walk you through it. Premier clients can contact us at 866.435.7089. A fee of $50 per fixed rate lock will be incurred.
How long is the option to request a fixed-rate loan segment available to me?
You can request a fixed-rate loan segment at anytime during the access (draw) period of the account. An access or draw period is the time during which you are allowed to use the funds which will be defined when you open your line of credit.
Is there a minimum amount for a fixed-rate loan segment?
The minimum fixed-rate loan segment amount is $5,000.
How will I be billed if I request a fixed-rate loan segment?
All outstanding advances and fixed-rate loan segment payments will appear on one monthly billing statement, with one due date and one payment. Balance and rate information will be disclosed individually for each advance and loan segment.
Are there any additional fees required to apply for the Home Equity Line of ChoiceSM?
There is no application fee, no annual fee or closing cost for lines up to $500,0002.
Will I be charged a fee if I make a late payment?
You will be charged a Late Charge of 5% of the amount of the Minimum Payment if you are more than 15 days late in making a Minimum Payment.
Are there potential tax advantages with a Home Equity Line of ChoiceSM?
Yes, you may be eligible to deduct up to 100% of the interest you pay on your HSBC home equity account. However, individual circumstances affect tax situations. You should talk to your tax advisor to determine your home equity interest deduction eligibility.
Can I have my payments deducted from my checking account?
Yes. You have three options:
- Have your payments deducted automatically from your HSBC checking account. Please call 866.435.7085 for more information
- Registered Personal Internet Banking ("PIB") customers make payments to their mortgage or HELOC account(s) through the HSBC website using the bill pay function
Log on to Personal Internet Banking
Register for Personal Internet Banking
- Make payments at any HSBC branch
What if I have more questions?
We will be happy to help.
- For questions about new applications, please call us at 800.62.APPLY (27759), Monday through Friday 8am to 9pm ET, and on Saturdays 8am to 5pm ET.
- For inquiries about an existing mortgage or home equity account, call an HSBC Mortgage Specialist at 866.435.7097, Monday through Friday 8:30am to 8:30pm ET. HSBC Premier clients can contact us at 866.435.7089.
1 The fixed rate loan option provides the ability to fix the interest rate on all or a portion of the outstanding balance during the draw period. Up to three balances can be fixed at one time. Additional conditions apply.
2 The Annual Percentage Rate (APR) for a Home Equity Line of ChoiceSM is variable and is based on the U.S. Prime Rate published each day in The Wall Street Journal (but not the Weekend Edition of The Wall Street Journal) (the "Index") plus a margin. If The Wall Street Journal publishes more than one U.S. Prime Rate for a day, the Index will be the average of those rates. The index as of the last change date of March 16, 2017 is 4.00%. The maximum APR is the greater of 15.9% or 5% above the initial APR. The APR will not increase or decrease by more than 4% in each year. Rates apply to lines secured by your primary residence (excluding co-ops and 3-4 family property) with a total loan-to-value ("TLTV") ratio of 80% or less. Higher rates may apply for different TLTV's, property and product types. Please contact us for current rates on lines with different terms.
The APR does not include closing costs. For line amounts of $500,000 or less, HSBC will pay all closing costs. For line amounts greater than $500,000, you will be required to pay 50% of title insurance costs and any mortgage tax-like fees; however, HSBC will pay all other closing costs. Generally, closing costs are estimated to range from $270 to $19,900, but may be higher depending on the location of your home and the amount of your line of credit. If you terminate your account within the first three years, you will have to pay an early termination fee of $500 (or $750 for properties located in California and Virginia), plus any mortgage tax-like fees paid by HSBC at the time your account was established. No annual or application fees will be assessed. Your Home Equity account will be secured by a mortgage on your home. All persons on the deed must sign the mortgage. Property insurance is required and flood insurance may be required.
Mortgage and home equity products are offered in the U.S. by HSBC Bank USA, N.A. and are only available for properties located in the U.S. Subject to credit approval. Borrowers must meet program qualifications. Programs are subject to change. Geographic and other restrictions may apply. Discounts can be cancelled or are subject to change at any time and cannot be combined with any other offer or discount.
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