What is a SmartLock?
Orrstown’s SmartLock is a line of credit that is tied to the equity in your home. With SmartLock, you have the freedom to borrow funds against the value of your home to make home improvements, consolidate debt, purchase a vacation home, or for whatever reason you need extra cash.
With SmartLock, you're in control. You can secure a line of credit for as low as $5,000. Access your funds whenever you need them over a 10-year period. You can use it like a line of credit and only pay interest on the portion you borrow at a variable interest rate, or you can lock in a portion of your SmartLock and pay it off at a fixed rate with fixed monthly payments. For added flexibility, you have up to 20 years to repay the principal and interest.
Benefits
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No closing costs -
No application fees -
Competitively low interest rates -
Ability to lock or relock interest rate up to 5 times
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The interest you pay may be tax deductible **
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Easy access to funds
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Only pay on the amount you borrow
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Orrstown Bank is offering SmartLock with an introductory rate of 4.35% APR* for the first 6 months and then 7.25% - 7.75% variable APR* thereafter.
How Does a SmartLock Home Equity Line of Credit Work?
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When you’re approved for a SmartLock, you have the freedom to choose whether to withdraw the full amount of your line of credit or just a portion of it. If you only withdraw part of it, you can lock in the balance and pay it off at a fixed rate with fixed monthly payments. Fixed rate/fixed term advances are subject to different pricing as noted below.*
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SmartLock allows you to lock in up to 5 portions of your line of credit, so you can customize your borrowing experience based on your needs. The minimum amount to lock in is $5,000.
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EXAMPLE: Let’s say you want to establish a SmartLock line of credit for $100,000. You decide to borrow $30,000 from this line of credit so you lock in the $30,000 at a fixed rate. A few months later, you decide you need additional funds of $20,000. In that case, you can secure a second lock. You can have up to five locks at the same time as long each is for a minimum of $5,000 and you do not exceed your approved line of credit of $100,000.
You can use money from your SmartLock for up to 10 years. As you repay the money you've used, the money becomes available again on your line of credit.
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Apply for a SmartLock (Opens in a new Window) (Opens in a new Window) (Opens in a new Window)
Understanding the Costs to Open a SmartLock
There are no application fees associated with a SmartLock. If you close your SmartLock line of credit before two years, additional fees* will apply as noted below. If you choose to lock in a portion of your line of credit, there is a $50 fee for each portion you lock, and a $75 fee for each portion you unlock.
Should you consolidate your debt? Click here to use our calculator to determine if this is the best option for you.
* Introductory 4.35% Annual Percentage Rate (APR) is effective for initial 6 months of the loan with automatic payments from an Orrstown Bank eligible deposit account. Refinanced Orrstown Bank Home Equity line of credit balances do not qualify for the introductory rate. After the introductory period, the rate converts to a variable (“permanent rate”). The permanent rate will vary with Prime rate as published in the Wall Street Journal (the index) plus or minus a margin. The APR will never exceed 18% or go below 3.25%. As of 11/8/2024, the variable rate is 7.25 % for properties in Pennsylvania and West Virginia; the variable rate is 7.50 % for properties in Maryland. Set up and maintain automatic payments to receive the introductory APR and discounted permanent rate. Borrower(s) must also meet certain credit score and loan-to-value (LTV) requirements to receive introductory rate. Annual Percentage Rate (APR) advertised is based on a minimum credit score of 740, maximum loan-to-value (LTV) ratio of 80%, and a minimum line of credit amount of $100,000. Lines of credit amounts over $5,000-$99,999 are available with different margins. APR advertised also includes a discount of 0.75 % for setting up (at or prior to loan closing) and maintaining automatic payments from an eligible Orrstown Bank deposit account and a higher APR will apply without automatic payments. A higher APR may be applied for line of credits with lower credit scores and higher LTV ratios. All SmartLock accounts have a 10-year interest-only draw period, followed by a 20-year repayment period. Your monthly payments may increase, possibly substantially, once your credit line transitions into the repayment period. Fixed Rate / Fixed Term Advances under a SmartLock account are subject to different pricing. There is a $50 fee for each rate lock and a $75 fee for each unlock. Lock must be in place for a minimum of 12 months before it can be unlocked. This product requires proof of active homeowner’s insurance policy. For properties in Pennsylvania, a recapture fee of $250 applies if you close the account within 24 months of account opening. For properties in Maryland, certain taxes associated with the line will be paid by us at closing; you will be responsible for reimbursement of those taxes if you close your account within the first 24 months of account opening. Other standard underwriting criteria apply. Terms and conditions of this offer are subject to change without notice. We reserve the right to withdraw this offer at any time. Contact us for properties outside this area.
** Consult with a tax advisor
Orrstown Bank has always been wonderful to deal with. I enjoy doing business with them. Keep up the good work Orrstown employees!
- Marlin W.
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