FlexFirst HELOC™
A home loan that lets you borrow smarter and pay interest on less.
What is a FlexFirst HELOC™?
A FlexFirst HELOC offers a smarter way to borrow against your home’s equity. It’s a First Lien HELOC that combines your primary mortgage and a Home Equity Line of Credit that is integrated with an FNBA checking account equipped with a sweep feature. This unique feature is what sets the FlexFirst HELOC apart from a normal home loan. At the end of each day, any funds remaining in your FNBA checking account are applied automatically after expenses to reduce the outstanding balance of your FlexFirst HELOC loan. The HELOC portion of the loan can be used to pay your daily and monthly expenses by using the debit card associated with your account or setting up bill pay just like you would with a stand alone checking account.
The sweep feature of a FlexFirst HELOC provides a unique opportunity to pay off your home faster and may significantly reduce the amount of interest you pay over the life of the loan. The HELOC portion of the loan provides you with ongoing access to the equity in your home that you can utilize to cover your expenses as needed.
Designed for financially disciplined borrowers, the FlexFirst HELOC allows your money to work around the clock to maximize your finances. Whether your cash flow is steady, seasonal or somewhere in between, leveraging your homes equity is easy – one account, zero wasted potential.
How does a FlexFirst HELOC™ work?
The FlexFirst HELOC works to leverage your income surplus to reduce the loan balance with a daily sweep vs making monthly installment payments like you do on a traditional mortgage.
Watch this short video to see the FlexFirst HELOC in action!
FlexFirst HELOC™ Calculator: See if it’s a good fit for you!
Make Your Next Move with a FlexFirst HELOC™
Benefits of a FlexFirst HELOC™
Sweep Account
Funds in your checking account are swept into the home loan daily, reducing your loan balance once the monthly payment has been satisfied.
Account Simplicity
Manage all your finances from one account. Use the FlexFirst HELOC for spending and borrowing – it’s cash management made easy!
Accelerated Payoff
The sweep feature applies excess cash to your balance in real time, resulting in lower interest costs and can help you pay off your home, years faster.
Optimize Cash-Flow
A FlexFirst HELOC puts your cash flow on autopilot, efficiently managing your cash, ensuring that your funds work hard instead of sitting idle.
A FlexFirst HELOC™ may be right if…
The household is cash-flow positive
There is strong financial discipline
Consolidating debt is a priority
Accelerating mortgage payoff is a goal
Speed, flexibility and financial control are valued
With over 65 years of mortgage lending experience, our team understands that your home is more than a mortgage. The FlexFirst HELOC from FNBA puts control in your hands and lets you spend, save and borrower, in whatever way fits your life.
Put your equity in motion with a FlexFirst HELOC™
With a FlexFirst HELOC, you can tap into your homes equity during the 10 year draw period to cover home improvements or repairs, debt consolidation, other major expenses, funding investments and more, all while only having to pay the interest and escrow portion of the loan. This type of home loan may provide the opportunity to consolidate all of your other loans or debts into a single payment, simplifying your finances.
After the 10 year draw period, the loan transitions to a 20 year, fully amortized loan where you will have a more traditional payment requirement which includes your principal, interest and escrows.
Frequently asked questions
What is a FlexFirst HELOC?
A FlexFirst HELOC is a Home Equity Line of Credit (HELOC) that replaces your primary mortgage and includes an integrated checking account with an automatic “sweep” feature. The sweep function automatically moves your income from the checking account to pay down the HELOC balance, which can help you pay off your home faster and significantly reduce the total interest paid.
Is the Interest rate fixed or variable?
This is a variable rate loan which fluctuates based on market conditions and is based off of the 30 day monthly average SOFR rate.
How does the 'sweep' portion of the HELOC work?
When you set up income or deposits to go directly into the checking account linked to your FlexFirst HELOC sweep, any funds remaining in the account at the end of each day, are “swept” out and applied to your loan resulting in a zero dollar balance in the checking account each day. If you need to make a purchase or pay a bill, simply use the debit card or checks associated with your account, and a ‘sweep’ from the HELOC portion of your loan into your checking will happen automatically to cover the expenses. This will add/increase your loan balance, but because your regular income is continuously being swept to pay it down, the balance can stay lower overall.
How does my monthly cash-flow speed up the payoff of the house?
If you deposit all your income into the checking account tied to your FlexFirst HELOC, any income remaining after expenses will be used to pay down your principal balance on the HELOC. Essentially the difference between the amount of money the household takes in and the amount that the household spends will be applied to the principal balance after interest. So, the greater the surplus, the faster the payoff, and the lower the surplus, the slower the payoff.
Can I use the funds available on my FlexFirst HELOC for Real Estate Investments?
Yes, you can use your FlexFirst HELOC on your primary residence to purchase other real estate, such as an investment or rental property. You can draw from the HELOC to fund a down payment and closing costs on a new property. This allows you to leverage the value in your current home without liquidating other savings. If you have enough available credit, you can potentially purchase a less expensive investment property outright with the HELOC funds.
How is the FlexFirst HELOC structured?
The FlexFirst HELOC consists of two phases:
1. a draw period (10 years) consisting of escrow and interest only payments that allow you to borrow funds from your homes equity, repay the principal balance and borrow again up to the available credit limit as needed.
2. a repayment period (20 years) where you are expected to make principal, interest and escrow payments without further access to your homes equity.
Check out more Frequently Asked Questions.
Disclaimer:
The information on this website is provided for general informational purposes only and does not constitute personalized financial, investment, or legal advice. FNBA does not guarantee the accuracy, completeness, or timeliness of the information presented, and actual results may vary.
The suitability of any product or service for your individual financial situation is solely your responsibility. We recommend consulting a qualified financial advisor before making any financial decisions. By using this website, you agree that FNBA is not responsible or liable for any actions you take or decisions you make based on the information provided or from obtaining our products or services.
All products and services are subject to credit approval and applicable terms and conditions, and may be modified or withdrawn at any time without notice.
Funds Availability
Depending on when your deposit is received, there may be a delay in funds posting to your HELOC account and transferring to your Home Equity Line of Credit. Cut-off times, weekends, and holidays may affect availability. Please see the Funds Availability Policy Disclosure for full details.