What is a Home Equity Loan and How Does it Work?
A Home Equity Loan allows you to borrow money against the value in your home by using it as collateral. Homeowners can tap into the equity that they have built up over time to finance home repairs or consolidate debt.
Example: You owe $300,000 on your mortgage. Your home is valued at $500,000. You have $200,000 in equity available.
Home Equity Loan
Ideal for large expenses, such as a major home improvement, or you want to consolidate your debt.
Funds disbursed all at one time
Fixed monthly payment amounts
Home Equity Line of Credit
Ideal for recurring expenses, such as home renovation or education-related costs.
Funds can be used as needed
Variable monthly payment amounts
Home Equity Comparison Chart
Loan Amounts
You can borrow up to 95% of the appraised value of your home, less the current balance of your first mortgage. Minimum loan amount is $10,000.00. If the Combined Loan To Value (CTLV) is greater than 85%, the maximum loan amount is $250,000.
Closing Costs
There are fees associated with both products. All fees can be deducted from the loan proceeds at the time of closing. If the loan is canceled, you will be responsible for the appraisal fee and any other fees that were incurred.
| Details | Home Equity Loan | Home Equity Line of Credit |
|---|---|---|
| How Funds are Distributed and Accessed | Lump Sum | Funds are available through online banking, by phone, convenience check or at a branch |
| Interest Rate | Fixed Rate | This variable rate product is tied to The Wall Street Journal Prime Rate |
| Interest | Interest is charge only on the outstanding balance | Interest is charge only on the outstanding balance |
| Monthly Payment | Fixed Monthly Payment | Variable monthly payment |
| Terms available | 5 to 15 Years | 7-year draw period and a 15-year repayment period |
Fees: All closing costs and fees associated with a Home Equity Loan or Home Equity Line of Credit are the responsibility of the member; however, these fees can be financed with the loan.
Computation: Method used for determining the amount that you can borrow:
Example: Value of home: $100,000.00 (x .80) Equity: $80,000.00 Present Mortgage: -$40,000.00 Equity Loan Value: $40,000.00
Payments: Payments will be amortized on the basis of one year for every $2,000.00 borrowed, not to exceed 15 years. Loan payments will remain constant until an additional advance is made. Interest may be deductible; check with your tax advisor.
We require homeowners insurance with the credit union listed in a second lien position. We originate home equity loans and home equity lines of credit on a primary residence. If you have a first mortgage that is an interest only loan or has negative amortization, we are unable to approve a home equity loan or home equity line of credit.
Home Improvement Loan
Ready to remodel your kitchen or bathroom? Have you always dreamed of your own inground pool?
Rates as low as 7.25% APR** for up to 60 months!
Other rates and terms are available. Maximum term is 20 years, maximum loan amount up to $100,000.
Same Day Approval.
Payment example: If you borrow $15,000 at 7.25% APR* for 5 years, your payment each month will be $298.87, or $137.66 bi-weekly. This offer may not be used to refinance any existing InFirst FCU loan. Not all members will qualify for the lowest rate. Not all applicants qualify for the maximum loan amount or longest term. Maximum term up to 20 years varies by amount borrowed. Contact us for details.
Secure and Fair Enforcement for Mortgage Licensing Act
The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), requires credit union mortgage loan originators and their employing institutions to register with the Nationwide Mortgage Licensing System & Registry (NMLS).
InFirst Federal Credit Union Mortgage Loan Originators
| Name | Number |
|---|---|
| InFirst Federal Credit Union | 449861 |
| Kealin Beckner | 2330014 |
| Nazmon Kalam-Fudzie | 194436 |
| Amber Gordon | 1566678 |
| Michael Mutchler | 1461987 |
| Jamie Priest | 2330232 |
| Nicole Todd | 1134820 |