Home Equity Loans
Home Equity Loans – Tap Into Your Home’s Potential
A home is often the largest asset you may own. Even if you still have a mortgage, home equity loans provide an opportunity for you to borrow against the equity, or value, you have built up in your home. These loans tend to be larger in nature and used to finance expenses such as home improvements, education, medical bills, debt consolidation, or dream vacations. When you need a home equity loan, there is no better place than visiting your local credit union. Washtenaw Federal Credit Union can help you get the money you need by using the equity you have earned over time simply by being a home owner. Call us or apply online to get the process started.
How Home Equity Loans Work
A home equity loan offers a lower interest rate over a traditional credit card or personal loan. The interest on your home equity loan is typically tax-deductible in the same way that your mortgage interest is deductible. Between the low interest rate and the tax deduction, your true out-of-pocket expenses tend to be very low. Many homeowners choose to take advantage of the low home equity rate to purchase something new or pay off expenses, which saves them money in the long run. For larger expenses, a home equity loan can be an excellent value.
We offer two different types of home equity loans – a Home Equity Installment Loan and a Home Equity Line of Credit (HELOC). Both of these home loans offer you the funds you need but in different ways:
- A Home Equity Installment Loan provides you with all of the money up front, and offers a fixed term (length of loan) and a consistent monthly repayment schedule. This loan functions like your car payment or home mortgage payment.
- We also offer a Home Equity Line of Credit, or HELOC. This type of loan carries an adjustable rate and has draw period from which you can access the money. Typically, you do not take all the funds out up front, but use the line of credit at various times during the agreed upon draw period which can be a few years or up to 20 years. The total loan is due as a balloon payment (all at one time) or in installments, according to an agreed upon loan repayment schedule.
Get a Home Equity Loan at Washtenaw Federal Credit Union
Whether you choose a Home Equity Installment Loan or a Home Equity Line of Credit, you want to work with a local credit union with professionals that are experts in home loans and finance. Washtenaw Federal Credit Union is your local credit union with all of the resources you’ll need with excellent rates and loan options. The only cost to you is a home appraisal fee of $175 (if needed) and this fee is waived if you close the loan with us.
- For Home Equity Installment Loans, we offer fixed interest rates for 5, 10 or 15 year terms and up to 95% loan to value. And, we offer a first or second lien position (mortgage) as well. We typically close your home equity loan in 30 days or less.
- For Home Equity Lines of credit, we have a 20-year term with a 10-year draw period and up to 95% loan to value. Payment is based on 1.8% of the outstanding balance of the loan and the interest rate is variable based on the prime rate with a floor rate of 5.00%.
We invite you apply online, call us at (734) 484-5100 or visit us at one of our local Washtenaw County credit union branches to discuss home equity loan rates and terms with one of our experts. We'll be glad to help you choose the loan that is right for you.
Please Note: interest rates for both types of home equity loans are based on credit and other factors.