HOME EQUITY
If you own a home, you are establishing equity. Equity is the difference between your mortgage payment and the value of your home. You can use that equity to apply for a home equity loan or line of credit. Typically, home equity products have more competitive rates than consumer loan products because you use your home as collateral for obtaining loan. Plus, in many cases, a home equity loan can be tax deductible*, making it more advantageous for you.
A Home Equity Loan or Line can be used for any type of large purchase, home improvements or additions, or for debt consolidation.
Fixed Rate/Term Home Equity Loan
1. For large, one-time purchases such as:
- Home Improvements
- Autos, RVs, Boats
- Furniture and Appliances
- Weddings
- Land
2. For debt consolidation, to reduce your rate and lower your monthly expenses
Benefits of Fixed Rate/Term Home Equity Loan :
- Loans up to $125,000
- Borrow up to 80% of the appraised value of your property (Up to 85% in some cases)
- No application fee
- No closing costs*
- Fixed rate/Fixed payment
- Shorter term = Lower rate
- Sign up for automatic payments and reduce your rate by .25%
- Terms up to 20 years
- Competitive rates
Revolving Home Equity Line of Credit
(The New DEAL - Dependable Equity Access Line)
1. For expenses which will occur over a longer period of time
- College Tuition
- Major Home Improvements
2. As instant credit for unexpected opportunities or unforeseen emergencies
Benefits of a Revolving Home Equity Line of Credit:
- Lines up to $300,000
- Borrow up to 80% of the appraised value of your property (Up to 90% in some cases)
- No closing costs on lines up to $125,000*
- No payments until you use the line
- Introductory rate for loans up to $175,000
- Access funds for 5 or 10 years
- Interest-only payments for up to ten years
- 15 year repayment term after draw period
- Competitive rates
Equity Edge Loan
1. When you have little or no equity in your home, but have excellent credit
2. For large expenses like those listed for a Home Equity Loan
Benefits of an Equity Edge Loan:
- Equity in your home not required
- Borrow from $2,500 to $20,000
- Choice of 3, 5 or 10 year term
- No appraisal
- No application fee
- No closing costs*
- Sign up for automatic payments and reduce your rate by .25%
- Competitive rates
Before applying you must download, print and read When Your Home Is On the Line and by continuing you acknowledge that you have done so. Continue to Equity Edge Loan Application. (Click here to print a pdf version.)
Please call 800.451.8373 or e-mail MortgageCenter@mhvfcu.com for more information.
* Closing costs paid by the Credit Union may be recaptured if: (1) Line/loan is closed/terminated within the first three years. (2) Equity Edge Loan is closed/terminated within the first twelve months.
