• Frequently asked questions

Home Equity FAQs

What is equity?

A simple definition is equity equals ownership. It's the portion of your house that is actually owned by you (not your mortgage company). A more accurate definition of home equity is the difference between your home's market value and your loan balance.

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What is loan to value?

Compares your total loan balances outstanding to the appraised value of the property. For Example: Appraised Value = $100,000 1st Mortgage Balance = 80,000 Loan to Value% = 80%

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Will interest on my Home Equity Line of Credit be tax-deductible?

The interest on most consumer credit (auto loans and credit cards, for example) is not tax-deductible. Home equity credit is an exception. Why? Because it's secured by your home. This classifies it as mortgage interest, which is usually 100% tax-deductible.

According to the tax laws, interest on up to $100,000 of debt, secured by the equity in either your principal residence or second home, is fully deductible.

Every rule has exceptions, of course. So check with your tax advisor first.††

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How much will I have to pay in closing costs on a home equity line of credit?

Zero.*

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What is the maximum loan to value on a home equity line of credit?

We offer three types of home equity lines of credit:

  • Standard, with a loan to value of 80%, and a maximum loan of $500,000
  • Gold, with a loan to value of 100%, and a maximum loan of $350,000
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    Where do I close my loan?

    At a First Tennessee branch convenient to you or through a closing agent's office if a branch is not convenient to where you live.

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    Is there an annual fee?

    Yes, there is a $50.00 annual fee charged during the draw period. This annual fee is waived the first year.

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    How long does it take to close?

    Depending on the location of the property it normally can take 2 – 3 weeks to close on a Home Equity Line of Credit.

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    Is there a prepayment penalty?

    That depends, based on the loan offered. Your financial advisor can tell you whether there is a prepayment penalty for early payoff on your specific loan.

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    Once the loan is closed, how do I get my cash?

    There are 4 ways to get your Home Equity Cash:

    • Checks: You will receive checks, which you can use to draw from your Home Equity Cash account.
    • Homeowner's Platinum Card: A Visa® Platinum access card that can be used around the world.
    • ATM: The Homeowner's Platinum Gold Card gets you cash at any ATM in the U.S.  
    • Any First Tennessee location: Meet with a loan officer to receive your cash.

    Purchases are automatically debited from your line of credit balance.

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    Where can I get more information on my lending options?

    First Tennessee has developed a special video series hosted by several of our experienced lending professionals. These videos cover many important lending topics, including ways to build your credit, finding the loan that's right for you, and what to expect in the lending process. To watch the videos, click here.

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* Subject to approval.
Not available unless requested and not available in Texas, New York or Connecticut.
†† Tax may not be deducted for loans with LTV greater than 100%.
Home Equity Lines of Credit are not available to residents of Alaska.
Home Equity Loans are not available to residents of Alaska.

Federal Deposit Insurance Corporation Banking products and services are provided by First Tennessee Bank National Association. Member FDIC. Logo_Equal_Housing_LG Equal Housing Lender.