If you’d like to borrow a lump sum for a large project or expense, a fixed-rate Home Equity Loan may be your best solution.
Reduce your loan rate by having your payments deducted automatically from your edUFCU Share Draft Checking Account. Payments may be made bi-weekly, semi-monthly or monthly. (If the Checking Account is closed or payment deduction is stopped for any reason, the interest rate returns to the regular Fixed Home Equity rate.) Consider enrolling in Direct Deposit so that your paychecks are automatically deposited for you each pay period.
If you need access to funds over a longer period of time, you may be better served by a Home Equity Line of Credit. Draw only the funds you need when you need them to keep your payments and interest costs low. A Home Equity Line of Credit should only be used for major expenses such as education, home improvements or medical bills; not for day-to-day expenses.
Stop by our main branch to apply and learn more about our Home Equity lending products. You may also request an application packet be mailed to you. There are fees associated with home equity lending products that vary by county and state. Your loan officer will be able to provide the exact fee amounts and answer any questions you may have.
If the property is deeded to multiple people, we’ll need information for all owners completed on the loan application. You will also need to provide a copy of the home’s deed. An employment verification form will be forwarded to your employer for completion and an appraisal on your home will be ordered.
Once we’ve committed to making the loan, we’ll request that you provide proof of Homeowner’s insurance naming edU Federal Credit Union on the policy as a loss payee.
Your credit limit will be based on your ability to repay, your income, debts, other financial obligations and credit history. The amount borrowed may be 80% of the appraised value of the home minus the balance owed on the existing mortgage, not to exceed $75,000. For example:
Appraisal of home = $100,000
Less mortgage debt – $40,000
Potential Credit Line = $40,000