An ECU Home Equity Loan can save you hundreds, even thousands of dollars! Did you know that you can use a home equity loan for just about any large purchase that you desire? Plus, in most cases, a home equity loan will offer you lower rates than a personal loan. Whether you want to pay for a remodeling project, college costs, buy a new car or consolidate your high interest credit card bills, an ECU Home Equity Loan makes good financial sense!
What is a Home Equity Loan?
The generic term "home equity loan" comes from the fact that the equity you have in your home is used to determine the maximum loan amount, and even more importantly, from the fact that your home is used to secure the loan.
Home Equity Loan Types
ECU has variable-rate plans for home equity lines of credit and fixed-rate plans for home equity second mortgages.
Home Equity Loan vs. HELOC?
Both of these loan types have one thing in common: they use the equity in your home to secure funds. What those funds are used for is up to you, but how they’re paid back is a key difference between the two.
| Home Equity Loan | Home Equity Line of Credit | |
|---|---|---|
| Adjustable interest rate |  | |
| Fixed interest rate | | |
| Receive a lump sum | | |
| Draw money as you need it | |
Home Equity Line of Credit
A line of credit may be a new lending concept for some individuals. Once your credit line has been established, you can draw on it "as you need it"; you don't have to take the line amount as a lump sum. Repayment is figured on the amount borrowed, and the rate of interest adjusts three times per year (2/15, 6/15, and 10/15). The interest rate is indexed off the Wall Street Journal Prime rate, and the index varies based on the amount of your credit limit. It's easy to borrow additional money with a line of credit. You can stop in any of our offices to get an advance, or you can sign up for check writing access, which allows you to write a check to advance on your line of credit. As you repay your balance, the amount repaid becomes available for you to use again. It's that easy and convenient!
Home Equity Second Mortgage Loan
A home equity second mortgage loan is a one-time lump sum loan that is repaid based on a fixed rate and a fixed term. It does not have the flexibility and convenience of the line of credit where you can get additional advances, but it does give you the peace of mind of knowing exactly what your payment and rate will be for the term of the loan.
Fees & Costs
You'll pay little to no closing costs (fees) at all when you apply for a new ECU Home Equity Loan or Home Equity Line of Credit. New Home Equity loan amounts less than $15,000 are charged $150 in closing costs. We do require a fee reimbursement of up to $300 required for lines closed within 24 months. Other financial institutions may charge you application fees, annual fees, transaction fees, title examination fees, appraisal fees. These fees can easily add up to several hundreds of dollars!
We're Here to Help
There are many home equity loan offers out there today. Trying to decide which one is best for you may not be easy. We can assist you in deciding which plan best fits your financial budget and your needs. ECU has many options available to you; fixed or variable-rate interest plans, 85% LTV, terms from 60 to 180 months. You'll be at ease knowing we're here to help. Contact us or call at 800.844.2ECU to discuss your options on an ECU Home Equity Loan or Line of Credit today.
Home Equity Line of Credit Disclosure
*APR = Annual Percentage Rate. APR as low as 7.25% based on a loan amount of $80,000 for 180-month term with a monthly payment of $734.00. Minimum credit line $5,000. Maximum credit line $500,000. Minimum payment is $100. Payments are fully
amortized. The minimum credit advance amount required is $5,000. Rates are
variable based on an index using the Prime Rate published in the Wall Street
Journal. Prime rate is currently 7.75% effective 11/7/2024. Maximum loan to
value is 85%. Floor rate is 3.25%, ceiling rate is 18.00%. Rate can adjust
tri-annually: February 15, June 15 and October 15. Maximum loan term is 15
years. Refinancing existing Earthmover CU HELOC loans under $10,000 are subject
to $150 fee. Subject property must be primary residence. Fee Reimbursement of
up to $300 required for lines closed within 24 months.
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