Do you have big dreams of remodeling your house or buying a new car? What about taking a big trip...getting some new furniture... going back to school... or maybe just paying off those high interest rate credit card debts?
There's an easy affordable way to finance any or all of these things. The money you need to realize your dreams is right where you live -- in your home.
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Your Most Valuable Asset
The equity you have built up in your home is probably the most valuable financial asset you have. Equity is the difference between the present market value of your home and the total of any outstanding mortgages and other liens. If you have been a homeowner for several years, there's a good chance that you have more equity in your home than you might realize. As the market value of your home increases, so does your equity. That's important because your home's equity can be used as collateral for low-cost equity financing.
Two Options to Choose From
At Service Credit Union, we offer two types of equity lending - a fixed-rate Home Equity Loan or a variable-rate Home Equity Line of Credit. Either option may be just right for you. To determine which one best suits your needs, first determine the use of your proceeds. This will help you decide which option is right for you.
Home Equity Loan
A fixed-rate Home Equity Loan is the better choice when you know the total amount of money you need and want to receive this money in a lump sum. The loan will be repaid over a three to fifteen year period with fixed monthly payments. If you like, the payments can even be deducted from your checking or savings account by automatic debit. Primary residence and second/vacation homes are eligible.
Home Equity Line of Credit
A variable-rate Home Equity Line of Credit is right for you when you want cash availability. This revolving line of credit enables you to access your funds by simply writing a special Home Equity check. (This option is available on owner-occupied property only.) You can write checks on your line of credit for up to ten years with an additional 179 month repayment period. The minimum monthly payment is interest only on the amount of credit you use. Although $250 is the minimum check writing amount, you can write as many checks as you wish up to your available credit limit.
Who Can Get an Equity Loan?
Any Service Credit Union member who has established equity in their home and lives in our lending area. These loans may not be available in every state. Please ask us for details.
What are the Benefits of Service Credit Union Equity Financing?
Lots of places offer Home Equity Loans, but a Service Credit Union Home Equity Loan offers one of the lowest rates in New England. And, just as you would expect from Service Credit Union, our Home Equity Loans and Lines of Credit are available without any application fees, prepayment fees or closing costs*. Plus, in most cases, the interest paid on a Home Equity Loan or Line of Credit is fully tax deductible up to $100,000, provided the loan does not exceed the fair market value less the outstanding mortgage. However, limitations and restrictions can apply to special situations. Please contact your tax advisor concerning your particular situation.
What Will an Equity Loan Cost?
Finance Charges - You pay NO application fees and Service Credit Union pays the closing costs*.Appraisal Costs - When an appraisal is required, Service Credit Union will order the appraisal for NO CHARGE TO YOU after the application has been reviewed.
For an Equity Loan, you receive the entire amount of the loan up front. The interest rate and payment are fixed for the life of the loan. We will be glad to provide you with figures for the loan amount and terms you have in mind.
For an Equity Line of Credit, you take advances as you need them and your payment and finance charges are based on your outstanding balance. You can pay back all or part of the principal. The interest rate is variable and is based on the Prime Index Rate as published in the Wall Street Journal. The minimum monthly payment will be interest only. For example, the minimum monthly payment on a balance of $10,000 at 8% is $65.75 during the draw period.
Closing Costs - At Service Credit Union, you pay NO closing costs!*
How Long Will It Take To Get an Equity Loan?
Processing your application is our first priority. You could be remodeling your house, buying a new car, starting your trip, whatever you want to do in as little as two weeks. Click here to fill out the application online. (PLEASE NOTE: Home Equity transactions are subject to a 3-day Right of Rescission period in accordance with Federal Regulation. Loan proceeds will be disbursed after the third business day following the date of closing.)