PRINCETON, N.J. -- United Jersey Bank said it has become the first bank based in New Jersey to allow customers to draw on a home equity credit line of $5,000 to $250,000 for up to 10 years while paying only the interest on the amount borrowed.

Repayment of principal is required only after the 10th anniversary of the loan and is spread over 20 years. The product will be offered at an introductory rate of prime minus 0.25% for a year, said Ray de Quintal vice president of retail product development.

"We view this as a significant development in the evolution of home equity credit lines," he said.. "The interest-only credit line is as far removed from the standard home equity credit line as that was from the old second mortgage."

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