Home Equity Line of Credit

You can borrow up to 80% of the value of your home. If your home is worth $300,000 and your mortgage is $200,000, then the equity is $100,000, but you can only borrow up to $40,000 because 80% of the home value is $240,000. In some instances you can borrow more than 80% through a HELOC depending on your situation.

You can use a HELOC for almost anything, such as a home remodel, a down payment on another home, or to pay for an emergency. There are no restrictions on how you use the money. A HELOC has a lower interest rate than most credit cards and is ideal for debt consolidation.

Equity represents the amount of money you would receive upon the sale of your home. Equity is a reflection of the current market value of your home.

Why would I want a Home Equity Line Of Credit (HELOC) instead of refinancing my home?

A HELOC gives you more flexibility. If you refinance your home, you receive a one-time payment based on the market value of your home and the difference between your new home loan amount and your previous home loan. A HELOC gives you revolving credit, like a credit card. You use only as much as you need up to the maximum amount, and as you pay it back, you can use it again.

• HELOC stands for Home Equity Line of Credit
• Turn the equity you already have in your home into a line of credit that you can pull from when you need it.
• With our fixed rate conversion, you get the flexibility of a line of credit with the security of a fixed-rate loan.
• Limits as low as $10,000
• Options for non-owner-occupied properties

• Funds can be transferred through online banking.
• Cashier’s checks can be requested in branch.
• Cash can be requested in branch. Please call ahead for amounts exceeding $3,000

• No payments are owed unless money is advanced.
• Your payment amount will always be 1% of your outstanding balance or $50, whichever is greater.
• Your payment on a fixed-rate conversion is calculated differently. Please see ‘Fixed-Rate Conversion’ category below.
• Payments are due on the last day of every month.
• Payments apply to principal and interest.

• Fixed-rate conversions are offered on the funds you advance if you’d like to lock in a set rate, payment, and term.
• This can be a portion of your limit or the full limit, based on the amount you advance and request to have fixed.
  • A fixed-rate conversion can only be done upon member request, after funds are withdrawn from the HELOC. Form must be completed and signed same day.
• Your payment on a fixed rate conversion is amortized over 5, 10, 15-year term options so will vary depending on the term you select.
• Payments are applied to principal and interest and this payment will not fluctuate once converted.
• Rates offered on conversions are separate and often higher than current variable rates, however, do not fluctuate

• $35 annual fee to keep open (waived the first year)
• Cost to open your HELOC on a Primary Residence -
  • Appraisal cost can vary. This may or may not be required.
  • Property Condition Report - $68. This may or may not be required.
  • Title and Recording Fee - $100 (remaining title fees covered by Credit Union upon opening of loan)
  • Every HELOC can be different, and fees can fluctuate, this is just an estimate.
• $125 discount on cost to open if you qualify for Member Perks.
• Cost to fully close your HELOC –
  • If HELOC is closed within the first 3 years, member may owe a reimbursement of fees up to $300.
  • Reconveyance Fee charged by county.