Lines of Credit

The concept is straightforward. Our SimpleLOCTM Home Equity Line of Credit ensures that you have quick and easy access to money when you need it. This revolving line of credit is secured by your home and gives you the flexibility to write a check whenever extra cash is required. Opt to attach overdraft protection and automatic payment from your checking account, if desired, and pay interest and principal only on the dollars you use. Best of all, as funds are repaid, they're available to use again!

2.49% APR*
12-month introductory rate

4.00% APR**
WSJ Prime + margin,
Variable rate thereafter

*/** See below for details.

Common uses of a home equity line of credit

• Unexpected major purchase       • Ongoing home repairs
• Emergency funds       • Education financing
• Much needed vacation       • Improving your home


What is a home equity line of credit?

A home equity line of credit (HELOC) is similar to a credit card in that you can borrow money, pay it back, and then it is available again. An important thing to realize with a HELOC is that the amount you borrowed is secured by your home, which is very different than a credit card.

Repayment terms of home equity lines of credit can very so it's important to discuss your situation with a knowledgeable professional who can help you understand the differences in available options.

How does a home equity line of credit work?

It’s important to understand the intrinsic subtleties of using a home equity line of credit. The process starts with a simple approval process. Once you’ve been approved you are given access to the agreed amount of funds. The amount of available capital will fluctuate as you make purchases and/or payments on your loan.

This is the biggest difference between a home equity loan and a home equity line of credit. When you use a home equity loan you receive a lump sum payment and then begin making payments, much like a mortgage. With a home equity line of credit, you only borrow the amount of money you need at the time and only pay on the amount you’ve actually borrowed.

A benefit of using a home equity line of credit is the interest is often tax deductible. (It’s important to consult a tax professional to understand how this would affect your personal tax situation.)

Starting the home equity line of credit process

Getting started with a home equity line of credit is smart, easy and convenient.


Talk to a member of our lending team today!
Call or visit a branch near you.

APR = Annual Percentage Rate


This variable rate line of credit must be secured by an owner-occupied, 1-4 family residential property, not currently listed for sale, with a maximum 80% loan-to-value ratio, first or second lien. The rates, fees, and terms of credit stated are based on meeting the bank’s normal credit underwriting standards. Rates, fees, and terms may vary based on your credit qualifications, loan amount, and loan-to-value ratio. Property insurance and flood insurance (if applicable) is required. A National Penn checking account is required. The minimum line is $5,000, of which $5,000 must be new money (other rates and terms apply).  Maximum line is $300,000. This offer and rates are subject to change based on market conditions and borrower eligibility. Please ask about other programs and terms available.


An early termination fee of 2% of the credit limit (maximum $350) will be charged if the line is permanently closed within 36 months of being established.  Account opening fees may range from $66 to $700 depending on line amount, appraisal type, and property location. Trust review fee of $200 for properties held in trust. Certain fees may apply if Maryland collateral.  


*The 2.49% annual percentage rate (APR) applies to new lines of credit of $50,000 or more and is good for the first 12 months of the loan. Increases to existing lines require a $50,000 minimum line and a $10,000 increase. The 2.49% promotional rate is not available to National Penn borrowers who have received a discounted line of credit rate within the last 36 months.

**For example, the $50,000 line of credit, after the expiration of the 12-month introductory 2.49% rate, the APR will be variable based on the Wall Street Journal Prime (WSJP) as published daily, plus a margin of 0.50%, or a minimum APR of 2.99%, whichever is greater. Rate shown is based on the highest WSJP published prime rate. Rates are subject to change, increasing when the prime rate increases, decreasing when the prime rate decreases. Current WSJP is accurate as of 12/17/15, which was 3.50%, plus 0.50% = 4.00%. Maximum APR is 18.00%. Different loan amounts have margins ranging from WSJP + 0.25% to WSJP +1.00%, based on line amounts. Refer to our website for other SimpleLOC™    pricing options.


This account includes a fixed rate option. Current fixed rate APRs range from 3.69% to 6.49% depending on payment option, loan amount, or loan term selected. This rate may vary, but once established as a new Fixed Rate Advance, will not vary thereafter. A $75.00 rate lock fee applies each time you establish a Fixed Rate Advance. The fee is waived if rate is locked at closing. You are limited to a maximum of 3 Fixed Rate Advances at any one time, with a minimum advance of $5,000.


This line of credit has a 15 year draw period and 15 year repayment period. By making only the minimum periodic payments each billing cycle, for the maximum term, your line of credit will have a maturity balloon payment, where all principal, interest and fees will be due in 30 years from date established. Please refer to our credit agreement for complete details.


Consult a tax advisor for deductibility of interest.

Have a question or need information?
For Consumer and Residential Mortgage inquiries, requests for information or to report errors, please write to us at:

National Penn Bank  |  ATTN: Retail Loan Operations
P. O. Box 547  |  Boyertown, PA 19512

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