Home Equity Loans Fixed Rate Fact Sheet

  1. Rate of interest is set by the Board of Directors on a monthly basis.

  2. The home equity will have a two year draw period where the borrower can access the line-of-credit. Following the draw period the line of credit will be stopped to allow the loan to be paid down. If the member pays the minimum payment the loan will be paid off in eight years and eleven months following the two year draw period. The total loan term will not exceed 12 years.

  3. Payment -

    When the predetermined interest rate is...

    Percentage your payment will be...

    12% or Less 1.25% of your balance
    12.25% - 15% 1.50% of your balance
    15.25% - 18% 1.75% of your balance

    Your payment will be determined by taking the percentage based on the predetermined interest rate and multiplying it by the outstanding balance as of the end of the month following the last advance, or $50.00 whichever is greater. The payment will be due on the last day of every month.

  4. Minimum draft allowed is $500.00

  5. Minimum inital credit line is $5,000.00.

  6. Require mortgage "1st or 2nd" on primary residence.

  7. Copy of property insurance on file.

  8. During the two year draw period the home equity loan is renewed on an annual basis.

  9. Line of credit is determined by using the following example:

    Current Town evaluation or appraisal (whichever is greater) $50,000.00
    Multiply by 80% X .80
       
      = $40,000.00
    Deduct first mortgage balance (if any) - $15,000.00
       
    Total lendable equity = $25,000.00


  10. The interest that you pay on a home equity loan may be tax deductible if you are itemizing your deductions. For specific information, please consult with your tax advisor.

  11. The cost for the Title Opinion can range from $85.00 to $1075.00, depending on the location of your home and legal work involved. Other fees such as recording fees and flood search fees apply. Call a loan officer for specific details to fit your situation.

  12. Any home equity loan over $50,000.00 or where the combined debt of a mortgage loan and home equity loan with us exceeds $50,000.00, will require an appraisal. We also may require an appraisal if the value of the town tax evaluation is not enough to give the member the line-of-credit needed. The estimated cost of an appraisal is $400.00.

  13. There will be a $20.00 fee to the member if we request an updated picture and tax evaluation and you do not respond. This update occurs every five years. There will be no fee if you comply with our request.

For more information on our very popular home equity loan, please stop by the Credit Union and speak to one of our Loan Officers.