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Is the dream home that you purchased a few years ago, ready for an update? Then we have the solution for you!
With our Home Equity Line of Credit you may qualify for up to $50,000, depending on the equity you've built up in your home. You may use these funds for debt consolidation, home improvement, vacations, college funds, or whatever your need may be.
Here's how it works:
NEW....You are no longer required to take an initial draw, and you will not pay interest on the line of credit until you begin taking advances. Interest is then calculated on the outstanding balance of your loan.
Your minimum payment will be $75 or 1.5% of your outstanding loan balance, whichever is greater.
NEW...You can now use your Home Equity Line of Credit for Overdraft Protection on your Checking Account!
We offer a variable interest rate that is tied to the Base Rate Index as set by the credit union. Your initial rate is determined by Loan to Value (LTV)and risk base(determined by your credit history).
Here's an example of how you determine LTV?
Current value of your home: $100,000
Current value $100,000 X 80% = $80,000 or 80% LTV
Current value $100,000 X 90% = $90,000 or 90% LTV
Current value $100,000 X 100% = $100,000 or 100% LTV
To determine how much you can borrow on your Home Equity Line of Credit, you will need to know your current First Mortgage Balance, and subtract it from the values listed above. Here's an example:
First Mortgage Balance = $65,000
For an 80% LTV loan you could borrow an additional $15,000, 90% LTV would give you an additional $25,000, and 100% LTV would provided another $35,000.
Your Home Equity Line of Credit will have a draw period of 5 years. Your interest rate will be adjusted once a year on the anniversary date of your loan.
At the end of each 5 year draw period, you may apply for another 5 year draw period. If your new draw period is denied, you may amortize your existing loan balance over 180 months with a fixed monthly payment. However, you may payoff the existing balance earlier without penalty.
Take advantage of our Home Equity Line of Credit today. You'll be surprised at how much money you will save!
NEW...Fixed rate Home Equity Loan options are also available...call us for details!
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