CHOICEquity Home Equity F A Qs

Have questions about a home equity line of credit? We have the answers to help you make the most of your home's equity.

What is an M&T CHOICEquity Account?

The M&T CHOICEquity Account is secured by your home and turns your home's equity into a line of credit you can use for virtually any purpose. Use as much or as little of your line as you need – for home improvements, debt consolidation, education expenses or other major purchases such as a car or even a vacation.​

With M&T CHOICEquity, you can:

  • Use your account as a revolving line of credit for 10 years, known as the "draw period." Then take up to 20 years to pay off any outstanding balance (​repayment period)
  • Convert some or all of your balance to a fixed-rate loan within your CHOICEquity Account – select a loan term from 1 to 25 years
  • Choose to have as many as 3 fixed rate loans, in addition to your line of credit, at any time
  • Decide how you'll make your payments – interest-only or principal and interest payments –​ while you're using your line of credit during the draw period

​​Equity is the difference between the current value of your home (known as the fair market value) and any remaining mortgage or loan balance.

Equity = Your home's value - Remaining mortgage balance(s)

How much can I borrow?

For the M&T CHOICEquity Account​, the maximum loan to value for a primary residence is 85.99% for lines up to $500,000, and 60.99% for lines greater than $500,000, up to $1,000,000. The maximum loan to value for vacation homes is 60.99% (up to $250,000).

1. Estimate the current value (or fair market value) of your home and multiply it by 85.99% (60.99% for a vacation home).

2. Then subtract any mortgage balance(s) you have on your property.

3. The result is the amount of equity that the M&T CHOICEquity Account could make available to you.

Your rate will depend on several things, including your credit standing, the line amount you are requesting, the loan-to-value ratio and other requirements. To see our rates, visit the Loan Rate Finder.

​​Single family primary residences, vacation homes, manufactured homes, condos and townhomes. If you're not sure that your residence meets these definitions, call us at 1-800-724-3222​ or visit a branch​ to discuss.​

The draw period is the period of time during which you can access the available funds in your line of credit. The draw period for CHOICEquity​ Accounts is 10 years.

​​The repayment period begins when your draw period ends. During the repayment period, you pay off any remaining balance by making principal and interest payments. The CHOICEquity Account​ features a 20-year repayment period. When your account enters the repayment period, you no longer have access to the CHOICEquity revolving line of credit.

​​​You can use your CHOICEquity as a line of credit during the 10-year draw period. Or, if you like the idea of a fixed rate and a dependable monthly payment, we make it easy to lock in a rate on a balance – you can do it by phone or at a branch​ – with no reapplying, additional paperwork or approvals needed. 

​​During your draw period, M&T Bank's CHOICEquity​ Account allows for up to three fixed-rate, fixed-term loan segments at any one time. Depending on the loan term you select, the payment period of your loan term(s) may extend beyond the draw period. You can request as many fixed-rate loan segments as you like during the draw period, but you can only have up to three at one time.

​​A variable rate is an interest rate that changes periodically in relation to an index. Payments may increase or decrease according to how the index fluctuates. For example, the M&T CHOICEquity​ Line of Credit has a variable rate that is based on the Prime Rate, as published in The Wall Street Journal.

​Your variable APR will never exceed 15.9% APR.

​​​No, however, if you close the account within 36 months after the date it is opened, you must reimburse us for certain fees we pay to third parties in connection with opening the account. Reimbursement of fees does not apply to accounts secured by properties located in the state of Pennsylvania.

Accounts canceled within 36 months of account opening are subject to reimbursement of 3rd party fees paid in connection with establishing the account. These fees can range for line sizes $5,000 - $1,000,000 as follows by state: CT: $305 – $3,881, DC: $454 - $4,760, DE: $314 - $3,540, MD: $352 - $15,541, NY: $463 - $23,696, NYC: $463 - $23,696, NJ: $407 - $4,576, VA: $412 - $24,396, WV: $333 - $3,074. These fees do not apply to PA properties. Property insurance and flood insurance, if applicable, are required. Other terms and conditions may apply. Rates are subject to change. M&T CHOICEquity accounts cannot be used to pay off existing M&T CHOICEquity or Home Equity accounts. Payment example assumes principal and interest payments for a $25,000 loan segment with a 240 month repayment term, at a non-discounted APR of 4.59%.

​​After you have been approved for the CHOICEquity Account, your closing will be scheduled at the convenient bank branch​ of your choice. 

During the closing, you will sign all of the necessary documents. You may also be required to provide items for documentation, such as proper identification and your updated Homeowners Insurance Policy.​

You'll receive a book of personalized checks that gives you direct access to your line of credit. You can also access your account in person at any M&T branch office or by making transfers from your line to your M&T checking account through M&T Online Banking.

​​No. The M&T CHOICEquity​ Line of Credit cannot be used for overdraft protection.

​​​​​Yes, as long as you make principal and interest payments on your line of credit, you can use the funds again during your draw period up to the original credit limit.

​For the most accurate payoff amount, please call us at 1-800-724-6444 and we’ll be happy to assist you.

We're happy to assist. Please call 1-800-724-3222 or stop by any M&T branch​.

Please mail payments to:

M&T Bank
P.O. Box 62146
Baltimore, MD 21264-2146