WHAT IS A HOME EQUITY LINE OF CREDIT?
A home equity line of credit (HELOC) is a form of revolving credit in which your home serves as collateral. You are approved for a specific credit limit, which is the maximum amount you can borrow at any one time. Usually, your credit limit is determined as follows: (Appraised value of your house x 80%) - existing mortgage balance
The rate for a home equity line of credit is variable and tied to the Wall Street Journal's prime rate.
WHO SHOULD CONSIDER A HOME EQUITY LINE OF CREDIT?
Because your home is likely to be your largest asset, a home equity line of credit is best for major expenses such as college tuition, home improvements, or medical bills.
You must be a property owner to qualify for this loan.
ADVANTAGES OF A HOME EQUITY Line Of Credit
- Lower interest rate
- Interest may be tax deductible
- Ability to borrow larger sums of money
- Once approved, you can borrow up to your credit limit whenever you want.
HOW TO APPLY FOR A HOME EQUITY Line Of Credit
- Complete an application for a Home Equity Line of Credit Loan by clicking here.
- Return the completed application (make sure all owners have signed).
- Enclose a letter or statement from your mortgage company showing the balance of your loan.
- Include the name of your insurance company and agent. (A loss payable clause will need to be supplied to us at closing).
- Send a copy of your deed or mortgage showing the legal description of the property.
- After your credit has been checked, we will approve your loan subject to an appraisal.
Click here for current rates.
Standard Register Federal Credit Union is an Equal Opportunity Lender. Applicants are generally notified of credit decisions within 7 business days of application. For questions about the status of a loan application, you may email firstname.lastname@example.org or call 937-223-3333, option 4.