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| Home Equity Loans/Lines of Credit
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Like These Calculators? Click Here To See More! Heritage Family Credit Union
offers Home Equity Loans and Home Equity Lines of Credit (HELOCs) to our
members at super-competitive rates.
Do you
know the difference Home Equity Loans and HELOCs? Both types, Home
Equity Loans and Home Equity Lines of Credit, are secured by the
mortgage you have on your home. If you are looking to tap into the equity of
your home, it's important to know the difference between these two kinds of
loans.
 Should I consolidate my loans?
A Home Equity Loan is a one-time loan with a fixed
interest rate that you pay over a set period of time. Once you have
initiated the loan, you cannot borrow further against it. In other words, once
established, you cannot change the terms of the loan unless you refinance the
loan in its entirety. Many homeowners like the option of locking in a fixed
rate with a home equity loan because it protects them against rising interest
rates.
A Home Equity Line of Credit (or
HELOC) is a different animal entirely. It is a line of credit that you can draw
against any time. A HELOC offers additional flexibility over a Home Equity Loan.
For example, you can borrow up to the limit and pay down your debt at your own
pace, as long as you meet the monthly minimum payment requirements. Unlike Home
Equity Loans, HELOCs have an interest rate that fluctuates with the market.
Both Home Equity Loans and
HELOCs offer one big advantage over other types of loans. In most cases,
homeowners can deduct the interest they pay on their loans on their yearly tax
forms. This has made equity loans extremely popular for a variety of purchases
including new cars, home renovations, weddings and other large expenses.
(consult your tax adviser on interest deductibility)
Once you have established a Home Equity Line-of-Credit, you can access the available funds quickly and easily. Simply write a check from your Home Equity checks (provided at closing) or transfer funds from your line to another account using e-teller or by contacting our call center at 888.252.8932.
Best of all, you can use the funds for a variety of purposes including home improvements, college education, new automobile, vacations, refinancing high interest accounts, etc.
Home Equity rates are based on a member's creditworthiness. That means the rate you receive depends on your credit score.
The following table shows the grade of paper and the corresponding score:
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Grade Rating by Credit Bureau Score |
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Grade of Paper |
Score |
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A+ |
730+ |
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A |
680-729 |
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B |
640-679 |
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C |
600-639 |
|
D |
550-599 |
|
E |
549 or less |
To find out the corresponding rate for your grade of credit score, please see the Home Equity Loan Rate Table. The interest rate on our Home Equity Loan is variable. However, the credit union offers special introductory rates with our Performance Plus Lending. This initial interest rate will be in effect (FIXED) for at least 1 year.
Once you have a good idea of how much you want to borrow, utilize our handy loan calculator to determine a payment that fits your budget.
Home Equity Lines-of-Credit are established for a maximum of 15 years. Home equity lines-of-credit are based on the equity in the property. (Equity is the difference between the amount you owe on your first mortgage and the value of the property) The maximum Combined Loan-To-Value (CLTV) is established according to our Performance Plus Lending guidelines:
A+ up to 90% CLTV
A and B up to 90% CLTV
C, D, and E up to 80% CLTV
Repayment time may vary, depending on the amount of a member's outstanding balance after their last advance.
You may apply for a Secured Loan here now by clicking the "Launch" button on this page, or by filling out an application at one of our branch locations, contacting our call center at 888.252.8932 or online by logging into e-Teller.
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