First Niagara Bank Introduces the Bi-Weekly Home Equity Loan

Business Wire, June 26, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--June 26, 2000

The popularity of its biweekly mortgage product has led First Niagara Bank to add a new type of consumer loan to its product mix, the bi-weekly home equity loan. The bi-weekly home equity loan offers consumers the same benefits as the bi-weekly mortgage including a chance to save on interest, re-build equity faster and pay off the loan sooner than the more traditional monthly payment product.

"In the past five years, more than 50 percent of First Niagara Bank's mortgage customers have selected the bi-weekly mortgage as their product of choice over other competing mortgage products," said First Niagara Bank's Assistant Vice President of Consumer Loans Mary K. Nassoiy. "Its popularity is due to the economic benefits it brings to consumers. Creating a bi-weekly home equity product makes sense because, today, more than ever, consumers are smarter about saving money. They don't just consider rates anymore, they look at the long-term, bigger picture and are very interested in ways they can get ahead."

By definition, a bi-weekly home equity loan requires the borrower to make half payments every 14 days instead of a full payment every month, resulting in 26 half payments each year. Because the loan amortizes bi-weekly and two additional, smaller payments are made each year, consumers will pay off their loan sooner, re-build equity faster and pay substantially less interest over the life of the loan.

"We all have good intentions when we take out a loan or get a mortgage," said Nassoiy. "On the day we secure the loan, most of us plan to make that extra payment or two a year to reduce the amount we'll pay in interest and pay off the loan sooner. However, before you know it, the years have gone by and the money hasn't been put aside to make the extra payments. The bi-weekly helps people get into a savings routine that makes it possible, and affordable, to stay on track."

A home equity loan allows a consumer to borrow against his or her home and is commonly used for debt consolidation, to finance an education, home improvements or to purchase a second home and are available from $10,000 to $150,000. When comparing the 15-year monthly home equity loan to the 15-year bi-weekly, a customer borrowing a $30,000 bi-weekly would pay off the loan in approximately 12.7 years and save more than $4,600 in interest. First Niagara is one of the only banks in the Western New York area to offer its customers the bi-weekly mortgage and the bi-weekly home equity loan.

Another advantage to the bi-weekly is that payments will be withdrawn directly from the customers First Niagara savings or checking account through an automatic payment program eliminating the hassle of writing checks, paying for postage or waiting on line.

To find our more about the bi-weekly home equity loan or any other type of loan, call First Niagara Bank at 1-800-421-0004.

Corporation Information First Niagara Financial Group, Inc. 6950 South Transit Road P.O. Box 514 Lockport, NY 14095-0514

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