What is a balloon loan?A balloon loan is a loan that calls for periodic payments which are amortized over a longer period than the term of the loan. With a balloon loan, a final principal sum known as a "balloon payment" is due at maturity.

What happens to my rate after my balloon matures? The loan is reviewed at the time of maturity to extend the loan or it may be paid off without penalty.

How is my payment calculated on my line of credit? Your payment will be the interest due on the balance.

How much can I borrow? To determine how much you can borrow (your available equity), take the market value of your home and subtract your existing mortgage balance. The result is your available equity. AnchorBank can lend up to 100% of your available equity.

How do I determine a loan-to-value (LTV) ratio? To calculate a loan-to-value ratio (LTV), take the principal balance of your first mortgage plus any other mortgages on the property and add the amount of the loan amount you'd like. This result is divided by the fair market value of the property to determine your LTV. AnchorBank offers home equity loans for up to 100% LTV.

What is an Annual Percentage Rate (APR)? The Annual Percentage Rate (APR) is the yearly interest percentage of a loan, as expressed by the actual rate of interest paid. This rate includes the loan interest rate plus any points, loan origination fee and any other loan officer-related costs. The APR allows you to compare quotes of different lenders.

What is a second mortgage? This can also be called a home equity loan. A second mortgage is a loan that is secured by real estate.

How will I know if my loan has been approved? A loan officer will contact you within 24 business hours of your application.

How do I contact the bank if I don't hear from them? We can be reached at 1-800-25 ANCHOR (252-6246), option 2.

After I sign for a home equity loan how long do I have to wait for the money? A three-day rescission is required after you sign the loan documents. The money will be available on the fourth business day.

What is included in closing costs? Recording Fees and a title search fee will apply. If necessary, title insurance or an appraisal may be required.

What is auto pay? The monthly payments for the loan are electronically transferred from a checking or savings account on the due date each month.

Does auto pay have to come from an AnchorBank checking account? No, we are able to transfer the payment from any account you specify; however, we do offer competitive checking accounts to our customers.

Is there a penalty for prepaying, paying more or early pay-off? No, extra payments can be presented at any time.

Can I pay extra on my loan? Will it go to principal? Yes, extra payments can be applied at any time to principal.

Do you offer payment protection on loans? Yes, we offer payment protection plans on all of our loans in single and joint coverage, if applicable (available for purchase up through age 65).

Is a home equity loan only for home improvements? No, you can use a home equity loan for debt consolidation, education expenses, weddings, vehicles, etc.

What is the minimum loan amount for a home equity loan? The minimum loan amount is $5,000 for a home equity loan and $10,000 for our Homeowners Equity Line of Credit.

Will we need to get an appraisal? Each loan is reviewed using the fair market value of the property. This is usually determined by the use of your most recent tax bill. If necessary, an appraisal may be required.

Will you lend over 100% Loan-to-Value on a loan? No, we are only able to finance up to 100% of the value of the collateral.

Can I do a third mortgage? Yes, AnchorBank can process a third mortgage request if we hold the second mortgage up to a maximum of 90% loan to value and $25,000.

Will my loan be sold? No, we service all of our loans locally.

Can I go to any AnchorBank office for help? Yes, all AnchorBank branches in the state are connected to the same database. Our home office is located in Madison, Wisconsin.

Can we use a non-owner occupied property for collateral? Yes, 1-4 units of non-owner occupied property can be used for collateral up to 90% of the value of the property. The rates are slightly higher for this request. Lines of Credit are not available.

Does a flood certification have to be done on my property for a home equity loan or home equity line of credit? Yes, according to the Flood Disaster Protection Act of 1973, any loan secured by real estate needs to have a flood determination completed. If it is determined that the property is in a flood zone, flood insurance will be required.