Home Equity Loans
Home is where the value is.
Your home can be a very valuable asset and home equity loans are your path to tapping into that value. As you make mortgage payments and improvements to your home, you are building equity. Equity is the difference between the amount your home is valued at, and how much you owe on it. You can use that equity as collateral toward Home Equity Loans or a Home Equity Line of Credit with competitive rates to help with other expenses in your life. Take a look at both options and determine which best fits your needs.
Home Equity Line of Credit (HELOC)
A home equity loan or line of credit allows you to borrow against the value of your home, using your property as collateral. The amount you can borrow is determined by the amount of equity you have in your home. Equity is the difference between your home’s current market value (determined by an appraisal conducted by a license professional) and your mortgage balance. With a Home Equity Line of Credit, the loan amount is revolving – much like a credit card, but with a great rate.
As you make payments, the funds are replenished and available for you to borrow, again and again, as needed, for the life of the loan. This type of loan is best for expenses that are reoccurring or expenses that fluctuate, such as medical bills, and unexpected expenses.
- Withdraw funds as needed – funds can be used for any purpose.
- The interest rate can fluctuate.
- During the first 7 years, known as the draw phase, the minimum monthly payment will equal 1% of the principal outstanding balance or $75.00, whichever is greater.
- After the draw phase ends, the repayment phase will begin. The length of the repayment phase is 15 years.
- The minimum monthly payment will equal an amortized payment of the loan balance or $75.00, whichever is greater
- Borrow up to your available loan amount whenever you need money.
- Can be tax-deductible.**
New HELOCs Introductory Rate
- Intro rate of 2.99% APR for 6 billing cycles from the open date.
- After 6 billing periods, an ongoing variable rate will apply, currently as low as 7.50% APR
- After the promotion period, the rate will revert to the borrowers’ standard rate of prime + margin based on their qualifying credit score, floor rate listed below.
- The promotional rate is an introductory rate for applications beginning December 15, 2023.
- Although no specific end date has been determined, the offer could end at any time.
- The minimum line of credit to establish is $10,000. No minimum loan funding amount is required.
- All processing fees apply.
- The maximum loan-to-value is 90%.
Please see: Line of Credit Pre-disclosure | HELOC Booklet
Home Equity Line of Credit
Loan Disclosure| Details |
|---|
| Borrow 90% |
| Prime minus 0.25% APR (4.00% Floor) |
| Currently priced at 7.50% APR |
Home Equity Loans
A home equity loan or line of credit allows you to borrow against the value of your home, using your property as collateral. The amount you can borrow is determined by the amount of equity you have in your home. Equity is the difference between your home’s current market value (determined by an appraisal conducted by a license professional) and your mortgage balance. Home equity loans are best for expenses that require a one-time payment such as a kitchen remodel, pool installation, addition, or to pay off debt.
- Lump-sum disbursement – funds can be used for any purpose.
- The interest rate is fixed for the term of the loan.
- Your monthly payment is the same each month & includes principal and interest.
- Can be tax-deductible.**
First Lien Home Equity Loans
Loan Disclosure| Term | Rates as low as | |
|---|---|---|
| 10 years | 6.03% APR | Apply |
| 15 years | 6.28% APR | Apply |
| 20 years | 7.17% APR | Apply |
Maximum 85% loan to value for First Lien Home Equity Loans.
2nd Mortgage Home Equity Loans
Loan Disclosure| Term | Rates as low as | |
|---|---|---|
| 6 years | 6.25% APR | Apply |
| 11 years | 6.50% APR | Apply |
| 15 years | 6.75% APR | Apply |
| 20 years | 7.25% APR | Apply |
Rates shown for 2nd Mortgage Home Equity Loans are 80% loan to value.
APR = Annual Percentage Rate
*Home Equity Loan: An APR of 5.50% would require a monthly payment of $6.88 per $1,000 borrowed. The payment example does not include amounts for taxes and insurance premiums; the actual payment obligation will be greater. The rate may vary depending on each individual’s credit history and underwriting factors. All Credit Union loan programs, rates, terms, and conditions are subject to change at any time without notice.
**Consult your tax advisor regarding the deductibility of mortgage interest and charges.
***Home Equity Line of Credit: The Annual Percentage Rate is based on the value of an index. The index is the highest Prime Rate published in The Wall Street Journal on the last business day of the month. To determine your Annual Percentage Rate applied to your line, we will add a margin to the value of the index. The minimum Annual Percentage Rate is 4%. The maximum Annual Percentage Rate that can be charged is 18%. The line has a variable rate feature and the Annual Percentage Rate and the minimum monthly payment can change as a result. The rate can be adjusted monthly. You could pay certain fees to third parties to open a line. These fees generally total between $150 and $900. If you have an outstanding balance of $10,000, the minimum monthly payment at a rate of 1% would be $100.00 for 7 years (the “draw phase”) from the date of the agreement. After the draw phase ends, you must pay the outstanding balance on your line of credit (the “repayment phase”). The length of the repayment phase is 15 years. Your minimum monthly payment will equal an amortized payment of the loan account balance or $75.00, whichever is greater. This balance will be amortized over 180 months. The minimum payment will change whenever the annual percentage rate changes. Your loan payments will recalculate each month in order for your loan to be paid in full during the repayment phase. If you had an outstanding balance of $10,000 at the beginning of the repayment phase, the minimum monthly payment at the ANNUAL PERCENTAGE RATE of 10% would be $107.46. Other terms and conditions apply based on the type of loan you establish.
Property insurance is required.
