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 Security Service.
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 term you have in mind.
Home 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 there will not be any free 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) oustanding 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 one percentage point. Repayment will be 1 1/2% of the principal balance oustanding, $100, or the finance charge due, whichever is greater. A separate statement is mailed to you each month advising you of the minimum payment due.
