Home Equity Loans
If you are a home owner and have built up some equity in your home (the difference between what you owe on the home and what your home is worth), you can put this equity to work for you by borrowing against that equity to pay for things like remodeling, wedding expenses, educational expenses or the consolidation of several debts. The amount members can borrow depends on two major items, the ability to repay and the equity in your home. For example, a member may be able to borrow up to 50% of the appraised value of their home minus any outstanding first mortgage balance.
| The following is an example of how this works: | |
|---|---|
| Appraised value | $200,000 |
| Multiply by | x .75 |
| $150,000 | |
| Minus 1st mortgage | $100,000 |
| Maximum line of credit | $50,000 |
There are two major benefits to this type of borrowing. Because the loan is secured by your home, the interest rate that is charged for this type of loan may be less than that of other consumer loans. As well, often times, the loan interest paid on this debt is tax deductible on your income taxes where interest paid on other types of loans like personal loans, credit cards or auto loans are not.
| Fixed Rate Home Equity or 2nd Mortgage: | ||
|---|---|---|
| 75% Loan to Value (LTV) | 6.25% | 5 Years |
| 75% Loan to Value (LTV) | 6.50% | 10 Years |
| 75% Loan to Value (LTV) | 6.75% | 15 Years |
| Home Equity for Investment (Rental) Properties or Second Homes (Vacation Homes) | ||
|---|---|---|
| 75% Loan to Value (LTV) | 1.25% over current rate | |
Personal Real Estate, Vacation Homes and 2nd Homes have no maximum borrowing amount, but limited to a 12 year financing term. Investment Property (non-owner occupied) maximum borrowing amount is $50K with a 12 year maximum financing term.
Fees: $90.00 Recording
$175.00 Appraisal (drive-by only)
$48.00 Title Search
$15.00 Flood Certification
$ 5.00 Credit Check
$333.00 Total
Please Note: The above fees will be refunded to members after the 3rd day right of recession, providing that the loan is at least $10,000.00 new money.
*Current Prime Rate 7.75%*
Rates are subject to change.
