Home Equity Loans give the homeowner the ability to borrow against the equity in the home anytime funds are needed without the hassle and wait of a first mortgage real estate loan.

You can check here for our current Home Equity Loan rate. The borrower gets this rate initially when the Home Equity Loan is originated. This rate will remain the same until calendar end of the first year. Thereafter, the renewal rate is based on 1.25% above Prime Rate as quoted in the Wall Street Journal. As "draws" are made, whether or not Prime changes during the year, the rate will stay the same for the remainder of the calendar year. The rate changes on existing Home Equity Loans once each year, effective January 1st, based on the Prime Rate as of the proceeding December 21st.

The lowest the Home Equity Loan rate can be is set at the time your loan is made. The highest the rate can go is 11.00%. Home Equity Loans made prior to June 1, 2002 called for a bottom rate of 8.00%. The Credit Union's Board of Directors have, in 2004 and 2005, mandated a lower than bottom contract rate due to the unusually lower rates. All Home Equity loans existing as of December 31, 2004, will have a rate of 5.50% for the remainder of the year. New loans will be subject to the current rate at the time the loan is made, and will be subject to adjustment on January 1st of each successive year.

You must own your home and have at least 10% plus equity in the home. A real estate appraisal will be performed to determine the actual value. Any loans on the property will be considered when calculating the loan-to-value ratio. Once the equity is established, then the Home Equity Loan line-of-credit amount is set. This is the total amount of funds that will be available to borrow. This amount must be at least $5,000 to open a Home Equity Loan.

The Home Equity Loan has a 10-year term. The homeowner can borrow up to the line-of-credit limit. The first advance must be at least $1,000, succeeding advances must be at least $500. Only three advances can be made per calendar quarter. Once an advance is made, monthly payments will begin based on the balance and the number of years left in the term.

The Credit Union must have either a 1^st or 2^nd lien on the property. Also, proof of homeowners insurance in force is required. We will order the appraisal report and check employment and credit history.

Just give us a call, or come by. We will be glad to talk with you about all the details.