A Noble Idea. In 2004, a group of community leaders saw the need for a new locally-owned community bank. They had a common vision: to establish a financial institution based on Biblical principles. They envisioned a bank wherein all business endeavors and decisions would be handled in a Godly manner while meeting the needs of the community. Among the hundreds of decisions that had to be made during the organization process was the identity of the bank. The board of directors decided on NobleBank & Trust. The name they chose gave the new bank an identity with the local community and it expressed how the Board envisioned customers, employees, the community, and shareholders would be treated: “nobly!” Today, NobleBank & Trust has grown to five locations in Alabama, including an office at The Summit here in Birmingham.
Loan Tips & Options. As spring weather arrives, you may be considering making home improvements. You may also be a parent deciding how to pay for upcoming college-related expenses for your children. Or maybe you are a young entrepreneur looking for funds to start a small business, a prospective buyer of a new car or other major purchase, or a consumer wanting to consolidate credit card balances for a much lower interest rate. The first step in preparing for any of these decisions is to estimate how much you need for a loan.
Since a home is typically a consumer’s most-valued asset, many homeowners decide to use home equity lines to pay for major home improvements or other large purchases. Also, the interest on the money you borrow may be tax deductible. A home equity line of credit is a loan in which your home serves as collateral and the bank agrees to make a maximum amount of funds available for an agreed amount of time (usually 5-10 years). You will be approved for a specific amount of credit based on the value of your home and your existing mortgage balance (if any). The amount you can borrow is determined by the appraised value of the home times 80 or 90 percent (depending on the maximum combined loan-to-value the lender allows) minus the balance on your existing mortgage. Once you are approved and the credit line is open, you can start writing checks and begin the project or make the purchase you’ve been dreaming about!
A couple of important factors about the timing of Home Equity Lines of Credit: (1) The process to get a home equity line is usually quicker and easier than purchasing a home or refinancing a mortgage. (2) A three-day right of recession is required by federal law to protect homeowners from making quick decisions to borrow money secured by the equity in their homes that they might later regret. If you are in a hurry to use the money, you will need to factor this required waiting period into your timeline.
NobleBank & Trust is currently offering a 1.99% APR for 12 months on home equity lines of credit (ongoing rates thereafter as low as Prime Rate, which is currently 3.50%). If you are interested in finding out more about home equity lines of credit or other services offered by NobleBank, call 205-588-7060 or visit www.noblebank.com.
-Paul Z. Rogers 
Senior EVP & Market President
NobleBank & Trust
205-588-7060, www.noblebank.com
