How are finance charges calculated?

For the equity loan: The finance charge begins on the day a loan is made and is determined by applying the daily rate (Annual Percentage Rate divided by 100, then this figure is divided by 365 days) to the unpaid balance for the number of days since the last payment was received by SELCO. The faster a loan is repaid, the less the total finance charge will be. We'll be glad to provide figures for the loan amount and terms you have in mind. Or, you can figure out your monthly payments right now using our equity loan calculator.

For an equity line of credit: You pay interest on the amount of money you actually use. A finance charge will be imposed for the entire period of time when there is an outstanding balance on the account and, unlike credit cards with a grace period, there will not be any no-cost period to pay the outstanding balance without incurring additional finance charges.

A finance charge will be imposed on the average daily balance of advances, which is the sum of advances (determined by including new advances, and deducting any payments or credits, and excluding any unpaid finance charge) outstanding each day during the billing cycle, divided by the number of days in the billing cycle. The finance charge is calculated by multiplying the average daily balance of advances by the monthly periodic rate.

You can pay back all or part of the principal. The interest rate changes quarterly and is based on the Prime Rate as published in the Wall Street Journal plus 0 percentage points if your loan to value ratio is less than 90%. If your line of credit is based on more than 90% of the value of the home, the interest rate is the Prime Rate as published in the Wall Street Journal plus one percentage point. Repayment will be the greater of 112% of principal balance outstanding, $100, or the finance charge due. A separate statement is mailed to you each month advising you of the minimum payment due.

Visit our Current Rates section for the most current rates on loans and lines of credit. You can also calculate your monthly payments by using our equity loan calculators.

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What would my payments be for an adjustable rate loan?	What would I save if I make extra payments?

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