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Home Equity Loans |
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KEYS TO UNLOCKING THE EQUITY IN YOUR HOME Home Equity Lines of Credit and Fixed Rate Home Equity Loans are both great ways to borrow for home improvements as well as other large purchases such as a car, education or appliances. With a Home Equity Line of Credit, you have the convenience of a one-time application. Once it is established, you may borrow, repay and borrow again up to your available credit line. At GLCU, you may choose from two Home Equity products: "ON THE HOUSE" HOME EQUITY LINE OF CREDIT offers you interest rate protection with principal and interest payments. Rates may only vary twice a year on January 20 and July 20 a maximum of 1% per year with a 6% lifetime cap over initial established rate. * The Home Equity Line of Credit offers:
FIXED RATE HOME EQUITY For those large one-time purchases, you may want to consider a Fixed Rate Home Equity Loan* with GLCU. This loan option lets you lock in an affordable fixed rate for ten, fifteen years or 30/15 (amoritized for 30 years with 15 year balloon), making your payments the same during the duration of the loan. Since the Loan is secured by your homes equity, the interest you pay may be tax deductible! Consult with your tax advisor for details. HELPFUL TIPS & INFORMATION What you should know about Home Equity Lines of Credit. Get a "Zestimate"! This free online site can give you an estimate on the value of your home. * Rates are subject to change at any time. Your initial Annual Percentage Rate (APR) for a Home Equity Line of Credit will be calculated by adding the appropriate margin to the prevailing Prime Rate (index) as published in the Money Rates column of the Wall Street Journal as of the date your documents are prepared. The initial rate will remain in effect until the first rate change date as described below. The subsequent APR is a variable rate based on the highest Prime Rate as listed in the Money Rates Section of the Wall Street Journal on the first business day of the month which was 3.25% on January 2, 2009. On the House Home Equity Line of Credit: The rate is Prime Rate plus 1/2% with a floor rate of 5.00% for credit lines with a loan to value (LTV) ratio of 80% or less, Prime Rate plus 2% with a floor rate of 7.00% for credit lines with a 80.01%-85% LTV. The rate may vary twice a year on January 20th and July 20th up to 1% annually and a maximum of 6% above the initial rate during the life of the loan. Five-year draw period and Fifteen-year repayment period. An Early Cancellation fee may be charged on Home Equity Lines of Credit if the line of credit is paid in full and closed within the 24 months of the opening date. The maximum cost will not exceed two-hundred and fifty dollars. An early cancellation fee will not be charged if Great Lakes Credit Union terminates the Credit Line Account. Second Mortgage Loan, Bridge Loan or Vacant Lot Loan: Once established, the Annual Percentage Rate (APR) is fixed for the term of the loan. Stated rates may change at any time. For all home equity/second mortgage products, credit lines or loan amounts are available from $5,000 to $50,000 with a LTV of 80.01% to 85%. Up to $500,000 for home equities and second mortgages with a LTV of 80% or less. Closing costs will be waived up to $500 unless the loan is used to purchase the real estate used as collateral on the loan. Property insurance is required. Flood insurance may be required. Consult your tax advisor about the deductibility of interest. Valid for owner-occupied single-family residences, town homes and condominiums. |