What is Home Equity?
“Home Equity” is the difference between your home’s market value and the remaining balance on your first mortgage and any other mortgages or home equity loans secured by your home. Home equity can increase over time if the property value increases, or when loans secured by your home are paid down.
What is a Home Equity Line OF Credit?
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. Think of it like a credit card with a large limit. The funds are there for you when you need them, and you only pay interest on the money you actually borrow.
What can a Home Equity Line of Credit be used for?
- Home Improvements: Finish your basement, Redo the kitchen, add that extra bedroom, etc…
- Debt Consolidation: Consolidate your credit cards, auto loans and more into one
- Splurges & Vacations: Buy that boat you’ve always wanted or take the family on that once in a lifetime trip!
- Unexpected need for cash: Broken furnace needs to be replaced, an unexpected medical emergency
Why you should consider a HELOC from MCLCU
- Borrow up to 90% of the value of your home loans from $5,000 to $250,000¹
- Borrow as often as you wish during a 5-year draw period²
- Take up to 15 years to repay your loan³
- Just a simple small $600 processing fee with no annual fees, no prepayment penalties, and no inactivity fees4
Homeowners Insurance and Protection
Home Insurance
There is never a bad time to save some money, but sometimes are better than others. If you are interested in a Home Equity Line of Credit, it may be a good time to compare coverages. MCLCU is committed to providing its members with the best service possible at the lowest rates possible. Through our TruStage Partnership, MCLCU members could save on home insurance. Click the button below to get a FREE quote.
APR=Annual Percentage Rate. Rates are subject to change at any time. Your APR for a Home Equity Line of Credit will be calculated by adding the appropriate margin to the Prime Rate published in the Money Rates column of the Wall Street Journal (WSJ) on the date your documents are prepared. The rate may vary twice a year on January 1st and July 1st. The rate cannot increase or decrease more than 4.0% in any one year period. The Maximum annual percentage rate that can apply is 18.0% or the maximum permitted by law, whichever is less. However, under no circumstances with the annual percentage rate go below 3.50% at any time during the term of the plan.
1 Qualified Members can borrow up to 90% of the appraised market value of their home (primary residence only: single family home, town home, condo or up to a four flat), less the first mortgage owed. Property must be located in Illinois or Indiana. Homeowners insurance is required. If the property is located in a Special Food Hazard Area, flood insurance is required. Must be a member in good standing. Other restrictions may apply.
2 $5,000 minimum initial advance and $2,000 minimum subsequent advances
3 Loan amounts of $10,000.00 and less are amortized over 60 months, Loan amounts of $10,000.01 to $20,000.00 are amortized over 84 months. Loan amounts of $20,000.01 to $50,000.00 are amortized over 120 months. Loans amounts $50,000.01 and above are amortized over the lessor of 180 months or the maturity date of the HELOC
4 $600 processing fee due at closing. Depending on the lien position and the home equity line amount there may be additional fees. These fees generally total between $0.00 and $1,000.00.
