Put Your Home’s Equity to Work
As you make your mortgage payment each month, you build up equity in your home. That equity can serve as a valuable tool that can be used to pay for a variety of things. American First Credit Union offers two ways to utilize your home’s equity – Home Equity Loans and Home Equity Lines of Credit (HELOCs).
Home Equity Loans vs HELOCs
Home Equity Loans and HELOCs offer similar borrowing requirements and terms, but the way you borrow the money is different. You can borrow as much as $350,000* for a HELOC and $250,000 for a Home Equity Loan and each loan option offers:
- The ability to borrow up to 80%* of your equity
- Fixed and variable terms available
- Possible tax benefits**
- Closing costs paid by the Credit Union***
- Home access card (HELOC only)
So how are these loans different? Home equity loans come as a lump sum with a fixed interest rate so you make the same payment each month. HELOCs are a revolving line of credit that you can draw on multiple times while only paying the amount used on the revolving line of credit.
*For HELOC loan amount up to $250,000, the max CLTV (combined loan-to-value) is 80%. For HELOC loan amount $250,000.01 - $350,000, the max CLTV is 75%. The max loan amount for All Equity is $250,000. Maximum loan amount based on individual credit profile. Certain restrictions apply. Home Equity Loan not available in TX, TN, IL and GA. HELOC only available in AZ, CA, NV, ID, UT. For loans 80% CLTV or greater, please call for a quote.
**Consult a tax advisor regarding the deductibility of interest.
***If you pay off and/or close your line of credit within the 36 months following loan closing you will be required to pay up to $1,000.00 or actual cost (whichever is less) recoupment fee of upfront origination/closing costs paid by the credit union. The upfront origination costs covers, but not limited to, the cost of the credit report, title report, appraisal, flood certification, document preparation, recording fees, etc. The $1,000 or actual cost (whichever is less) will be added to the final payoff amount due to the credit union if a payoff request aka beneficiary demand is received on your loan within 36 months of funding date.
