Novus Equity Advantage
Novus Equity Advantage is a first-lien home equity line of credit (HELOC) paired with a checking account. Your deposits go toward the balance, and you can draw on the line when you need to. It can be used on a home you live in, a second home or a rental property.
How it works
With a traditional mortgage, you make a set payment each month, and money in your bank account doesn’t touch the loan. With Novus Equity Advantage, the HELOC is your first mortgage, and it is linked to a checking account.
- Your paycheck and other deposits go into the linked account and are applied to the balance.
- You pay bills and spend from the account, which draws on the line.
- Interest is figured on the balance you still owe. Keeping more money in the account can lower the interest you pay. Results depend on your deposits and spending.
- It is a variable-rate line of credit, so the rate can go up or down over time.
Who it may fit, and who it may not
It may suit some self-employed borrowers and real estate investors. It tends to make the most sense when deposits are steady and larger than monthly spending. It is not right for everyone. If your spending often matches your income, or a changing rate would strain your budget, a traditional fixed-rate mortgage may be a better fit. Whether it fits depends on your income, spending habits, credit and property. All loans are subject to credit approval.
Comparing loans for a rental or second home? See investment property loans and second home and vacation rental loans.
Learn more and compare
- What is Novus Equity Advantage? (official Novus explainer)
- Compare a traditional mortgage with the Novus Equity Advantage first-lien HELOC (interactive simulator; illustrative figures, not a quote)
The simulator uses sample assumptions to show how the product works. It is not a loan offer, a rate quote or a promise of results. For current terms, rates and costs, call or text me at 434-443-6557.
Novus Equity Advantage questions
What is Novus Equity Advantage?
Novus Equity Advantage is a first-lien home equity line of credit (HELOC) from Novus Home Mortgage, a division of Ixonia Bank. It is paired with a linked checking account. Your deposits go toward the line’s balance, and interest is figured on the balance you still owe.
How does a first-lien HELOC with a linked checking account work?
The HELOC takes the place of a traditional first mortgage. Your paycheck and other deposits go into the linked checking account and are applied to the balance. You can draw on the line for bills and other spending. Because interest is based on the balance, keeping more money in the account can lower the interest you pay. Results depend on your deposits and spending.
Can Novus Equity Advantage be used on a second home or investment property?
Yes. It is available on primary residences, second homes and investment properties, subject to credit approval, property eligibility and program rules.
Is Novus Equity Advantage a variable-rate loan?
Yes. It is a variable-rate line of credit, so the rate can go up or down over time. Ask Andy for the current terms before you decide.
Who might Novus Equity Advantage fit?
It may suit some self-employed borrowers and real estate investors whose deposits are steady and larger than their monthly spending. It is not right for everyone. Whether it fits depends on your income, spending habits, credit and property, and all loans are subject to credit approval.
How can I compare Novus Equity Advantage with a traditional mortgage?
Andy has an interactive comparison simulator that models deposits, spending and payoff against a traditional mortgage. Its figures are illustrations, not a quote or an offer of credit. Call or text Andy at (434) 443-6557 for numbers based on your situation.