Many people are not familiar with the differences between a Home Equity Loan and a Home Improvement Loan. A Home Equity Loan is subject to a variable rate and provides a revolving line of credit which is reviewed every 3 years and renewed if the financial situation remains in good standing. A Home Improvement Loan is subject to a fixed rate and the loan term ends when you pay off the 5, 7, 10 or 15 year term. Apply online today or call a member of our Lending Team to see which loan type would be best for your financial situation.
Are you looking to:
- Consolidate debt
- Remodel a room in your home
- Pay for educational expenses
- Take a vacation
- Add a new pool or deck to your home
A Home Equity Loan may be the perfect option for you.
Many homeowners may often be confused about where the best deal on a Home Equity Loan can be found. While many are aware that we offer home equity loans, they might borrow from another source because the terms look great and they don't want to miss an "opportunity."
We cannot caution members enough about the growing possibility of home equity scams that are now plaguing the lending industry. Community Credit Union takes extra steps to make sure that mistakes are not made, and that everyone who qualifies for a loan gets the right one. While home equity loans and lines of credit can help improve your finances, bad ones can easily lead to foreclosure. Remember, with a home equity loan, you are putting your home on the line.
The following is a rundown of possible home equity loan scams you may fall prey to:
Some lenders make loans they know borrowers can't repay. They do so in order to foreclose on homes and sell them, stripping away the home equity for their own profit. Frequently home equity loans are pitched as debt consolidation or home improvement tools.
To make matters worse, these lenders sometimes go further by agreeing to refinance the mortgage rather than foreclose, but tacking on exorbitant fees on to a new mortgage and increasing the homeowners debt in the process.
Unscrupulous lenders will charge high points and settlement costs, often adding fees for unnecessary life insurance and other "required" services onto a new mortgage. Often times these policies are designed never to pay out no matter what the circumstances.
Community Credit Union provides services in your best interest and would never apply deceptive practices. When you come to us for a loan, we review your finances honestly to determine your limit, and would never lend you beyond your means to repay. You can trust us to serve you for your own good.
Community Credit Union's Home Equity Line of Credit is a variable rate loan of Prime plus 0% APR* for the life of the loan with a ceiling of 15% APR*. If prime were to drop below 3.25% APR* the minimum (floor) rate would be at least 3.25% APR*. The Annual Percentage rate is based on Wall Street Prime rate effective 45 days prior to each quarter change date. It allows you to unlock the equity in your home allowing you to borrow up to 80% of the Appraised value. ( Complete loan to value of first and second cannot exceed 80% loan to value)
Your monthly minimum payment will equal 1.5% of the outstanding balance as of the date of your last advance or $50, whichever is greater. The annual percentage rate may increase or decrease on January 1, April 1, July 1 and October 1 of each year. The interest rate will be based on the Prime Rate as published in the Wall Street Journal plus 0% points. If more than one prime rate is published, the lowest rate will be used*.
There is no application fee when applying for our Home Equity Line. Property insurance is required. Flood insurance is required when applicable. Average closing costs typically includes the appraisal fee, attorney fees, recording fees, flood certification and check fees. You should consult your tax advisor regarding the deductibility of interest and fees.
* Annual Percentage Rate
Are you looking to make some improvements to your home?
- Remodel a room
- Add a deck
- Put in new carpeting
- Redesign your kitchen