If you’re a homeowner, you can borrow against the equity you’ve built up in your home for a variety of financing needs. AmeriCU offers both Home Equity Lines of Credit and Home Equity Loans at great rates and no closing costs! Plus, the interest you pay on Home Equity financing may be tax-deductible. (Check with your tax advisor.)
Lines of Credit
With a Home Equity Line of Credit, you can simply write a check or transfer funds from your line of credit into your checking account as needed up to your approved credit limit. As you repay your credit line, the funds become available to borrow again with no need to reapply. This is a popular choice for people who want flexibility to pay everyday expenditures.
Those members interested in financing larger expenses such as major home improvement, a new vehicle, high-interest debt consolidation, educational expenses, etc. may consider a Home Equity Loan. The repayment term and payment amounts are fixed for the life of the loan, a good option for those who prefer fixed payments for budgeting purposes.
Not sure if you need a home equity loan or line? Compare the benefits! Both types offer:
- Low interest rates – Home equities offer some of the lowest rates available because they are backed by the equity in your home.
- Low closing costs – Paying $0 or as little as $399.00 to close the loan.
- Short processing time – Obtain funds quickly (usually just two weeks after approval).
- Possible tax advantages – Home equity loans and lines may have tax advantages. We always advise that you consult a professional tax advisor or accountant. If applicable, these tax savings will save you money compared to other types of loans.Home Equity Installment Loan (fixed rate)
But, there are some important differences:
Home Equity Installment Loans (fixed rate)
- Low, NON-VARIABLE interest rate for life of loan – Your payment will always stay the same for the life of the loan – no surprises!
- Terms up to 15 years to repay – A longer amortization (payback) period makes payments very economical.
- All your money up front – You will get the full loan amount in one lump sum after closing.
- Life & Disability insurance available – Protect your financial situation in case of a sickness or injury. Protect your family in case of death. Loan will be paid off and will not tap into your main life insurance policy.
- Possible tax advantages – Home equity loans may have tax advantages. We always advise members to consult a tax advisor or accountant to be certain of tax advantages. This may save money compared to other financing options.
- Payment Example for Home Equity Installment Loan: $20,000 for 120 months at 6.00%** (Assuming 80% LTV) will be $222.04 with no insurance. Check out our current rates! All loan rates and terms shown on our rates pages are the very best that we have available. Rates shown our Annual Percentage Rates (APR), vary by individual’s overall credit history and underwriting factors and are subject to change. For more information, please call our Member Service Center at 1.800.388.2000.
Home Equity Line of Credit (variable rate)
- Variable rate (capped at 15% APR) – You get the convenience of a revolving line of credit that you can use whenever you need it. The interest rate can fluctuate but is guaranteed to never go higher than 15% (many credit card rates can as high as 30% APR).
- Interest-only payments for the first five years – Lowers the monthly payment to make for easier financing. You will only pay interest on the funds (line) you’ve used.
- Access period of 10 years, 15 years to repay, with no need to re-apply – You can draw on the credit line for up to 10 years, then have an additional 15 years to repay.
- Life & disability insurance available – Protect your financial situation in case of a sickness or injury. Protect your family in case of death. The home equity will be paid off and will not tap into your main life insurance policy.
- Money any time you need it – Access your funds (line of credit) by writing a check, using online transfers, or calling Telelink to make transfers to your checking account.
- Current member? Login to online banking from our home page.
- Current member without online banking? Learn how to sign up or apply here.
- Not a member? Not a problem! Apply here>>
- Call 800.388.2000 Monday-Friday, 9 AM to 5 PM.
- Stop by any of our conveniently located Financial Centers.
AmeriCU’s Loan Rates are subject to change without notice. This page will be updated as soon as possible after any loan rate change. Contact our Member Call Center to verify.
* APR = Annual Percentage Rate. Special promotional rate effective 3/17/16; rates and terms vary by individual’s overall credit history and underwriting factors and are subject to change. Estimated monthly payment of $177.47 per $10,000.00 based on maximum 60 month term. Equal Housing Lender. Membership restrictions apply.
Minimum line of credit is $15,000. Minimum draw at closing is $15,000. Rates can increase or decrease, but not to exceed 15.00% APR. Applications are subject to credit approval. Rates and terms are determined by overall credit history, loan-to-value and term of loan, and are subject to change. If loan is paid off within 3 years or less, member reimburses closing cost incurred by AmeriCU plus any additional fees to satisfy legal requirements. Fees can range from $35 to $3,500.
Prime rate as of 3/30/16 is 3.50% Annual Percentage Rate (APR). Minimum APR is 4.50%. Minimum line of credit is $15,000. Minimum draw at closing is $15,000. Rates can increase or decrease, but not to exceed 15.00% APR. Applications are subject to credit approval. Rates and terms are determined by overall credit history, loan-to-value and term of loan, and are subject to change. If loan is closed within 3 years, member reimburses closing costs incurred by AmeriCU plus any additional fees to satisfy legal requirements. Fees can range from $35 to $3,500.Today’s Home Equity Rates: (actual rate is based on your credit history and Loan To Value)