Find pertinent information about your Home Equity Line of Credit, like how to make payments, how to calculate finance charges, important addresses and much more.
M&T offers a variety of online services to help you better manage your Home Equity Line of Credit including:
Simply visit www.mtb.com and log onto or enroll in M&T Online Banking. For further assistance, please contact us at 1-800-790-9130.
To the extent your original obligation was discharged, or is subject to an automatic stay of bankruptcy under Title 11 of the United States Code, this statement is for compliance and/or informational purposes only and does not constitute an attempt to collect a debt or to impose personal liability for such obligation. However, M&T Bank retains rights under its security instrument, including the right to foreclose its lien.
Home equity loans allow homeowners to tap into the equity they’ve built up in their homes to access funds for major expenses, debt consolidation home improvements and more. M&T Bank offers home equity loans and lines of credit with competitive rates and outstanding service. In this article, we’ll take an in-depth look at M&T home equity loans, how they work, their benefits, and everything else you need to know about leveraging your home equity with M&T.
What is an M&T Home Equity Loan?
An M&T home equity loan allows you to borrow against the equity in your home. Equity is the current market value of your home minus any mortgage debt still owed on it. For example if your home is worth $300,000 and you owe $180000 on your mortgage, your equity is $120,000 ($300,000 – $180,000 = $120,000).
With an M&T home equity loan, you can tap into that $120,000 in equity. M&T offers home equity loans in two main formats:
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Home Equity Line of Credit (HELOC) – This functions like a credit card giving you access to a revolving line of credit up to a set limit based on your home equity. You can draw from the line as needed and just pay interest on what you use.
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Home Equity Loan – This is a fixed loan with a set repayment term, interest rate, and monthly payment. You receive the lump sum up front and make regular principal and interest payments until it’s paid off.
Both options allow you to leverage your equity as needed while using your home as collateral. The main difference is the HELOC offers flexibility and variability, while the home equity loan provides fixed rates and payments.
Benefits of an M&T Home Equity Loan
There are many benefits that make a home equity loan an attractive financing option for homeowners. Key benefits of an M&T home equity loan include:
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Access significant funds – You can tap up to 85% of your home equity with an M&T HELOC or loan, providing access to funds that may be more than you could get with an unsecured loan.
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Potentially low rates – Home equity loans often have lower interest rates compared to alternatives like credit cards or personal loans. M&T offers competitive variable and fixed rates.
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Interest may be tax deductible – If you use the funds for home improvements, the interest on an M&T home equity loan may be tax deductible, providing savings.
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Consolidate debt – You can use loan funds to consolidate higher interest credit card, auto, or student loan balances into one manageable payment.
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Make home improvements – A home equity loan provides affordable financing for renovations, repairs, or additions that increase your home value.
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Pay for other major expenses – You have the flexibility to use the funds for college tuition, medical bills, a dream vacation, or other major expenses.
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Pay over time – The loan allows you to access funds now and make affordable monthly payments over many years instead of paying all at once.
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Quick access to funds – M&T can provide quick access to your approved loan amount so you can move forward with your plans.
How an M&T Home Equity Loan Works
When you take out a home equity loan with M&T, the bank places a lien against your home. This gives them a secured collateral position on the property. If you default, the bank could foreclose to recoup loan funds.
To qualify, you’ll complete an application providing details on your income, expenses, debts, credit history, and home value. M&T will run your credit and have an appraisal done to verify home value and equity.
Once approved, here’s how the process works:
For a HELOC:
- You’ll have access to a revolving credit line up to your approved limit.
- During the 10 year draw period, you can access available funds as needed.
- You can carry a balance and just pay interest or pay down the principal too.
- After the draw period ends, you’ll enter a 20 year repayment period to pay off the full balance.
- Interest rates are variable based on the Prime Rate, so your payment adjusts over time.
For a Home Equity Loan:
- You’ll receive the loan amount you were approved for in a lump sum.
- The loan will have a fixed term ranging from 5 to 30 years depending on your preference. Longer terms mean lower payments.
- You’ll make fixed monthly principal and interest payments based on the rate and term secured.
- Rates range from 7.24% to 16.24% based on your credit and other factors.
- Once paid off, the lien is removed from your home.
In either case, it’s important to make all payments on time to avoid putting your home at risk of foreclosure. Make sure you understand the terms, rates, fees, and home insurance requirements before signing your loan agreement.
What are the Credit and Home Requirements?
To qualify for the best rates and terms on an M&T home equity loan, you’ll need:
- A credit score of 680 or higher
- A debt-to-income ratio below 45%
- Sufficient home equity and loan-to-value ratio
- A lien-free home or sufficient remaining equity if you have an existing mortgage
- Home insurance naming M&T Bank as insured
- No recent bankruptcy or foreclosure history
M&T offers flexible home equity solutions but will complete a full credit review. They want to ensure you can comfortably handle the additional monthly payment so you don’t end up overextended. Having substantial equity and good credit scores helps qualify for the lowest rates.
If your credit or financial situation is less than ideal, don’t fret. M&T may still approve you at a higher rate or for a lower loan amount accordingly.
What are the Rates, Fees, and Closing Costs?
Rates
For the HELOC, rates are variable starting as low as Prime – 0.06% and up to Prime + 7.39% based on your qualifications. So if the Prime Rate is 5%, your APR could range from 4.94% to 12.39%.
Fixed home equity loan rates range from 7.24% to 16.24% based on credit, loan amount, and other factors. Qualifying checking account relationships can earn you a rate discount of 0.25% to 0.40% as well.
Fees
The good news is there are no application, annual, or closing costs on an M&T home equity loan or HELOC! However, you may have to pay some third-party fees for the appraisal, title search, or filing fees depending on the loan amount and property location.
If you close the account within 36 months, you may be charged reimbursement fees that range from $2,956 to $30,231 depending on the state. Make sure to ask a loan officer for full details on fees.
Closing Costs
Closing costs may range from 2% to 5% of the total loan amount. This covers lender and third-party fees for processing, underwriting, appraisal, title insurance, and more. The costs are usually deducted from the loan proceeds at closing, so you’ll get the net loan amount.
How Do I Apply for an M&T Home Equity Loan?
Applying for an M&T home equity loan or HELOC is easy and can be done entirely online in minutes.
To get started:
- Visit mtb.com and click “Borrow” in the home equity section.
- Select whether you want a HELOC or Home Equity Loan.
- Provide details on the amount you wish to borrow and your home value.
- Begin the application and submit all required financial, income, and property information.
- An M&T loan officer will contact you within one business day to discuss pre-approval.
- They’ll explain rates, terms, and next steps in the process.
It takes about 2-4 weeks to go through underwriting and get full approval. Once approved, you’ll close on the loan and can access funds.
If you run into any issues or have questions during the application process, M&T’s customer service and loan officers are available by phone and in branches to provide assistance.
Pros and Cons of an M&T Home Equity Loan
Before applying, weigh the key pros and cons of tapping home equity to determine if it’s the right choice:
Pros
- Access significant funds quickly
- Potentially lower interest rates
- Interest may be tax deductible
- Consolidate higher rate debts
- Make valuable home improvements
- Affordable way to finance major costs
Cons
- You put your home at risk if you default
- Rates and payments adjust with HELOC
- Closing costs and fees
- Monthly payment impact on budget
- Home value must appraise high enough
- Equity and credit requirements
For many homeowners, the pros outweigh the cons. But make sure to consider your specific financial situation
Notice of Negative Information
We may report information about your account to the Credit Bureaus. Late payments, missed payments, other defaults or bankruptcy filings on your account may be reflected in your credit report.
Account information is easy to access through M&T Banks Automated Phone Service by calling 1-800-724-6444. Please have your loan number and the first five digits of your Social Security Number ready to access this convenient service. Automated information is available 24 hours a day, 7 days a week.
Homeowner’s Insurance (If Applicable)
- Insurance Requirements. The terms of your loan require that you maintain homeowners insurance coverage not less than the replacement value of your property. We suggest that you consult your insurance company to determine these coverage amounts. In the event we determine that the property is not adequately insured, we may purchase, at your expense, a lender-placed policy to protect our interest. This insurance is more costly and may provide less coverage than your original policy
- Policy Information. To protect our mutual interests, the mortgagee clause of your policy must include the following: M&T Bank, its Successors and/or Assigns, Loan # __________________, P.O. Box 5000, Springfield, OH 45501-5000
- Damaged Property. In the event of damage to your home, you should notify your insurance agent. After the claim has been filed, please contact us at 1-800-724-6444 so we may guide you through this process
- Flood Insurance. Required for all properties located in a Special Flood Hazard Area as designated by FEMA. Your Flood Insurance policy must include the following: M&T Bank, its Successors and/or Assigns, P.O. Box 1288, Buffalo, NY 14240-1288. In the event we determine that the property is not adequately insured, we may purchase, at your expense, a lender-placed policy to protect our interest. This insurance is more costly and may provide less coverage than your original policy
Payments: P.O. Box 62146 Baltimore, MD 21264-2146
General Correspondence: P.O. Box 900 Millsboro, DE 19966
Overnight Mail: 499 Mitchell Street Millsboro, DE 19966
HELOC Vs Home Equity Loan: Which is Better?
FAQ
What is the interest rate on a home equity loan with M&T Bank?
What disqualifies you from getting a home equity loan?
What is the monthly payment on a $50,000 home equity loan?
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Loan amount
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Monthly payment
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$25,000
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$166.16
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$50,000
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$332.32
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$100,000
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$673.72
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$150,000
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$996.95
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Is it hard to get home equity loan?