A Home Equity Line of Credit is a secured open-end loan that
unlocks the value of your home allowing you to borrow against the equity.
Advances up to the maximum loan amount may be made repeatedly throughout the
15-year draw period1, subject to the terms of the account agreement.
There is no need to reapply or record a new deed of trust. Advances may be made
online in Member Access, through ASK SECU, at your local branch, or by
contacting the Call Center.
Most interest paid on mortgage loans (first and second mortgages) is deductible
on itemized returns. The Home Equity Line of Credit is a second mortgage;
therefore, you may realize substantial savings by borrowing against your home
as opposed to other methods of credit. Check with your tax advisor for specific
benefits that may apply to you.
Home Equity Line of Credit Specifications
Borrow up to 90% of the value of your home, less the amount owed on your
present mortgage2
% APR3 using Payroll Deduction/Funds Transfer repayment
% APR using Direct Pay
Life and Disability4 insurance available
No origination fees or discount points required
Minimum required payment based on interest rate, loan balance, and payment
frequency
Can serve as overdraft protection for your Credit Union checking account
Processing Fees
There are usually no processing fees5. However, if a new appraisal
or an attorney's services are necessary to process the loan, fees may range
from $250 to $500.
Credit Line Worksheet
To estimate the potential equity, substitute your property value and mortgage
balance in the following chart:
Approximate Property Value
$75,000
Multiply by 90% (or 80%)2
x .90
SUBTOTAL
$67,500
Less Mortgage Balance
-$35,000
Estimated Credit Line
$32,500
Minimum Monthly Payment
$396
See payment schedule paragraph below for payment computation method.
You can apply for a new Home Equity Loan or an advance on an existing loan in
Member Access. Our
loan application
can also be completed and provided to your local branch or to the Call Center.
1 Advances to your credit line cannot
continue beyond the 15-year draw period. However, your repayment period would
continue as originally scheduled until your remaining balance is paid-in-full.
2 The maximum combined loan amount at a 90% loan-to-value is
$400,000 for properties not located in a subdivision and $500,000 for
properties that are.
3 The interest rate on our Home Equity loan is adjustable and
subject to change quarterly. The rate is based on the 26-week Treasury Bill
rate set on or after the 15th day of the second month of the previous calendar
quarter. The rate may not change more than 1/2 percentage point each quarter. The
maximum interest rate of ceiling on the loan will be the beginning rate plus 5
percentage points or 12.75%, whichever is higher, but never more than 18%.
4 If disability insurance is desired in conjunction with life
insurance, the payments will be $2 per thousand higher than disclosed under the
Payment Schedule.
5 Processing fees on loans secured by property in Virginia and
South Carolina are higher and not all fees can be waived. Appraisal fees vary
by region. A loan officer can assist you in determining the expense in your
area.
6 The teacher repayment plan allows for summer payments to be
skipped, thus coinciding with salary schedules.
