Home Equity Lines and Loans - The Solution for Many Needs
Home equity loans & home equity lines of credit* can be the solution to many financial needs, while allowing you to use the money/equity you’ve already paid into your home. Consider a home equity product for any of these reasons and more!
- Home improvement project
- Finance a large purchase
- Pay medical expenses
- Consolidate existing debt
- Even use funds towards the purchase of another house (keep in mind you'll have to disclose this as a purpose, and the additional payments will need to work with your ratios
You can refinance an existing home equity line or loan (HELOC/HEL) to get a lower rate, or access more funds! Best of all they’re available in most states.
- $5,000 min, $400,000 max, borrow up to 90% combined loan-to-value at a low rate with various terms **
- Potential tax advantages (please consult your tax advisor)
Wondering which choice is right for you? Answer some simple questions to help with your decision.
The Basic Checking account is right for you. No minimum balance No monthly maintenance fee Open with just $5 Earn a flat rate of dividends when you maintain a minimum balance of $2,500.+ APY** 0.05% Select Checking offers tiered levels of dividends based on the average daily balanced maintained, starting at $10,000 and increasing at various levels.++ APY** 0.05% Draw on your HELOC for up to five years as a revolving line of credit Choose between monthly adjustable or annually adjustable rate, indexed to Prime plus a margin Access funds via e-Branch or special HELOC checks Use for a refinance, home improvement, purchasing another property, or as an emergency fund. The options are endless.
A Side by Side Comparison
Home Equity Line of Credit
- Access funds via e-Branch or special HELOC checks
- Draw on your HELOC for a set number of years (5 or 10 year draw period offered) then have up to 20 years to repay.
- Pay interest and principal every month only on the funds you use
- Choose between monthly adjustable or annually adjustable rate, indexed to Prime plus a margin
Home Equity Loan
- Receive your funds in a lump sum
- Fixed rate for the term of the loan
- Great way to consolidate debt or pay for a large expense with fixed payments and a low rate, and you’re letting the value you’ve built in your home pay for your needs.
| Term | APR* | Payment/$1000 |
|---|---|---|
| 15 Years | 5.00% | $7.91 |
| 20 Years | 5.50% | $6.88 |
| 10 Years | 4.50% | $10.37 |
| 5 Years | 4.25% | $18.53 |
| Repayment Period | Loan to Value Ratio | Index | APR*** |
|---|---|---|---|
| Monthly Adjustable | |||
| Up to 20 Years | 90% | 3.25% (0% Margin) | 3.25% |
| Annually Adjustable | |||
| Up to 20 Years | 90% | 3.25% | 4.25% |
*All MITFCU Loans and Lines of Credit are secured against the member’s primary residence and will only take 1st or 2nd lien position on the property. Home Equity applications require income verification, real estate tax bill, property deed and mortgage and home equity statement if applicable. The credit union will pay all closing costs should applicant borrow $15,000.00 or more and the loan is not repaid within the first 24 months. If the loan is repaid within the first 24 months then the reimbursement of closing costs would apply. We do not finance property in a trust or investment property. MIT Federal Credit Union offers home equities in all states except Texas.
**Based on your home’s appraised value and combining all liens on the home including the proposed HELOC/HEL (limit of $400,000.00).
*** Real Estate Equity Lines of Credit are indexed to the Prime Rate published in the “Money” section of The Wall Street Journal. For monthly adjustable Home Equity Lines of Credit, the APR can change on the first day of each month and is established ten days prior to the first day of the month. For annually adjustable Home Equity Lines of Credit, the APR can change once per year on January 1, and the rate is established 30 days prior to this date.
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