Heritage Home Equity
Us the equity in your home to finance your next project.
Home Equity Loan vs. Home Equity Line of Credit
If you own a home, that means that you have equity. You can tap into that equity by utilizing either a home equity loan or a home equity line of credit (HELOC). These loans can be used for any purpose, such as renovating your home, covering educational costs or managing medical or other unexpected expenses.
HOME EQUITY LOAN
- Fixed term loan, like a mortgage, secured by the equity in your home
- Funds come in one lump sum check
- Loan offers a fixed rate that is generally higher than that of your first mortgage but lower than credit cards and personal loans
- Can borrow up to 85% of the equity in your home
HOME EQUITY LINE OF CREDIT (HELOC)
- A revolving line of credit secured by the equity in your home
- Withdraw funds as needed
- Variable rate that tends to be lower than a home equity loan, but still higher than a first mortgage
- Can borrow up to 85% of the equity in your home
Home Equity Loan
A home equity loan is a type of second mortgage that allows you to obtain a fixed amount of money by taking advantage of some of the equity in your home — that is, the difference between your home’s value and what you still owe on your mortgage.
A home equity loan comes with a fixed interest rate and gets repaid just like a mortgage: monthly payments over a set period, usually 30 years. This loan can be used for any purpose, such as covering educational costs, renovating your home or managing medical expenses.
| Type of Loan | Term | Variable APR as low as 7, 9 | Fixed APR as low as 7, 9 |
|---|---|---|---|
| Fixed Home Equity Loan11 | Up to 60 Months | N/A | 6.00% |
| Fixed Home Equity Loan11 | 61 to 120 Months | N/A | 6.25% |
| Fixed Home Equity Loan11 | 121 to 180 Months | N/A | 6.75% |
| Fixed Home Equity Loan11 | 181 to 240 Months | N/A | 7.00% |
| Home Equity Line of Credit10, 12 | 10 Year Draw, 15 Year Repayment | 7.50% | N/A |
Home Equity Line of Credit (HELOC)
A home equity line of credit or HELOC offers flexibility in terms of accessing your funds and is a variable rate product. You can access your home equity line of credit as you need it and the rate is subject to change after set periods of time. That means you can borrow many small increments, a few large increments or whatever suits your needs, as long as you have the funds available.
Each time you borrow from your line of credit, it’s called a “draw”. You draw funds by writing a check or using online banking.
| Type of Loan | Term | Variable APR as low as 7, 9 | Fixed APR as low as 7, 9 |
|---|---|---|---|
| Fixed Home Equity Loan11 | Up to 60 Months | N/A | 6.00% |
| Fixed Home Equity Loan11 | 61 to 120 Months | N/A | 6.25% |
| Fixed Home Equity Loan11 | 121 to 180 Months | N/A | 6.75% |
| Fixed Home Equity Loan11 | 181 to 240 Months | N/A | 7.00% |
| Home Equity Line of Credit10, 12 | 10 Year Draw, 15 Year Repayment | 7.50% | N/A |
My Home Loan Funded, What’s Next?
We are so thankful that you chose HFCU for your home loan needs! In the loan process, you should have been informed that you will need to submit proof of insurance as a condition of your loan with us. To submit your insurance, check on your insurance status or view your insurance history, click the button below to be taken to our secure login page through MyLoanInsurance® to sign in using the Reference ID and PIN you were provided. No reference ID or PIN? Call us at 845.561.5607.
7 APR=Annual Percentage Rate. Actual rate may vary based on credit worthiness and down payment, if applicable. All extensions of credit are subject to credit approval. Rates shown are lowest offered for the loan products advertised. Applicants that are not approved for these loan rates or terms may be offered credit at a higher rate and/or with different terms. All rates and terms are subject to change without notice. Offer may be withdrawn at any time without notice. Contact a credit union employee for further details. Other terms and conditions may apply.
9 All rates quoted include a 0.50% reduction for members who authorize payment of their HFCU loan through an automatic electronic funds transfer, debited from any account.
11 As an example: a 180-month term and a 70% total loan-to-value for a home equity loan with a fixed rate of 6.25% APR would result in an estimated payment of $8.54 for each $1,000.00 financed.
12 Subject to a 3.00% floor rate. There are certain draw down, balance requirements, and loan-to-value restrictions which may apply. For variable-rate loans, the APR may increase after consummation. Home Equity Lines of Credit closed out prior to their anniversary dates will be subject to the addition of all waived closing costs to the payoff balance. The rate is based on the current published WSJ prime minus a margin of .50%. The margin is based on credit worthiness and will vary.