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People Driven Credit Union

Home Equity Loans

Home Equity Loan Options

Turn Your Home Equity into Opportunity with Fixed Rate Home Equity Loans and HELOCs

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Home equity loan rates as low as

6.50%¹ APR*

Unlock the full potential of your home’s value with a loan backed by your home’s equity. Whether you’re planning a major renovation, consolidating debt, or covering unexpected expenses, Home Equity Lines of Credit (HELOC) and Fixed Rate Home Equity Loans provide flexible and affordable options to help you achieve your financial goals.

Membership and eligibility requirements apply, with approval subject to application, credit, and property considerations.

6.50%

PDCU Home Equity Loan Options

HELOC vs. Fixed Rate: Which is Right Home Equity Loan Options for You?

When it comes to tapping into your home’s equity, two popular options are a Home Equity Line of Credit (HELOC) and a Fixed Rate Home Equity Loan. While both allow you to borrow against the value of your home, they are designed for different financial needs. Understanding how each works and their key differences can help you decide which loan option best fits your situation.

Fixed Rate Home Equity Loan Options

A Fixed Rate Home Equity Loan, also known as a 2nd mortgage, provides you with a lump sum of money upfront, which you repay over a set period of time with fixed monthly payments. This type of loan offers stability and predictability, as both your interest rate and payment schedule remain the same throughout the life of the loan.

Key Features of a Fixed Rate Home Equity Loan:

  • Fixed Interest Rate: Your interest rate is locked in, meaning your monthly payments will stay the same.
  • Lump Sum Payout: You receive the entire loan amount upfront, making it ideal for one-time expenses like a major home improvement project, debt consolidation, or a large purchase.
  • Predictable Repayment: Because your payments are fixed, it’s easier to budget and plan for repayment over the long term.

A Fixed Rate Home Equity Loan might be the better option if you prefer a structured repayment plan and need a specific amount of money for a particular purpose.

Learn more about a Fixed Rate Home Equity Loan at People Driven Credit Union.

Home Equity Line of Credit

A HELOC is a revolving line of credit, similar to a credit card, that allows you to borrow against the equity in your home. With a HELOC, you’re given a credit limit and can borrow as much or as little as you need over time, during a draw period. During the draw period, you only pay interest on the amount you’ve borrowed, and after the draw period, you enter the repayment phase, where you pay back both principal and interest.

Key Features of a HELOC:

  • Flexible Borrowing: Borrow only what you need when you need it.
  • Variable Interest Rate: HELOCs have a variable interest rate, meaning your payments can fluctuate over time.
  • Interest-Only Payments: During the draw period, you make interest-only payments, keeping your monthly expenses lower at first.

A HELOC is ideal for ongoing or unpredictable expenses, like home renovations or medical bills, where you want flexibility in how and when you access funds.

Learn more about a Home Equity Line of Credit (HELOC) at People Driven Credit Union.

What’s the Difference?

  • Borrowing Structure: A HELOC offers flexibility with a revolving credit line, while a Fixed Rate Loan provides a lump sum upfront.
  • Interest Rates: HELOCs typically have variable rates, meaning your payments can fluctuate, while Fixed Rate Loans come with a fixed rate, giving you predictable payments.
  • Repayment: HELOCs often allow interest-only payments during the draw period, followed by principal and interest payments later. Fixed Rate Loans require both principal and interest payments from the start, providing a clear repayment plan.

Which Loan Option is Right for You?

Choosing between a HELOC and a Fixed Rate Home Equity Loan depends on your financial needs and preferences.

Consider a HELOC if you:

  • Need ongoing access to funds for multiple projects or expenses.
  • Prefer the flexibility to borrow as needed over time.
  • Are comfortable with variable interest rates and the potential for payment fluctuations.

A Fixed Rate Home Equity Loan might be a better fit if you:

  • Have a specific, one-time expense that requires a lump sum.
  • Prefer the stability of fixed monthly payments and a predictable repayment schedule.
  • Want to lock in a low interest rate to avoid future rate hikes.

Ultimately, the right loan depends on your unique situation, budget, and goals. If you’re still unsure, we’re here to help!
Explore more about HELOCs or the benefits of a Fixed Rate Home Equity Loan. Let People Driven Credit Union guide you in finding the best option to make the most of your home’s equity.

Talk with a Home Equity Specialist

Questions about HELOCs or Fixed Rate Home Equity Loan Options?

Our team can walk you through your options, answer your questions, and help you decide what fits your needs. No pressure, just helpful guidance.

Connect via email Call 248-263-4100

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Disclosures

Equal Housing Lender. Federally insured by the NCUA. NMLS #776727. Membership eligibility required. All loans are subject to credit approval and property qualification.

*APR = Annual Percentage Rate. Rates range from 6.90% to 15.40% APR and are based on creditworthiness, loan amount, term, property type, and combined loan-to-value (CLTV) ratio. Minimum loan amount and property requirements apply. Rates are current as of today and subject to change at any time.

This loan is secured by your residence. Failure to make payments may result in foreclosure. Maximum financing available up to 90% CLTV; lower limits may apply based on your credit profile. A typical preferred debt-to-income (DTI) ratio is 43% or less.

3-Day Right of Rescission: For owner-occupied homes, borrowers have the right to cancel the loan within three business days after closing under the Truth in Lending Act.

Tax Deductibility: Interest may be tax-deductible if used for qualified home improvements. Consult your tax advisor for details.

Fixed Rate Home Equity Loan Fees: Fees include credit report, property valuation, title work, flood search, tax tracking, mortgage recording, processing, and closing. Total costs vary by loan amount and generally range from $800 to $1,400 or more depending on loan size and property type. Please request an itemized estimate before applying. Home Equity Loan Options

6.90%

Membership Requirement

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:
  • A valid Driver's License, State ID, or Passport with your current address
  • Your Social Security Number
A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.