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Home Equity Line of Credit

Quick and Easy

The best way to get the money you need

Apply for a Home Equity Loan
  • Overview

    Interest Only Home Equity Line of Credit (HELOC)

    A flexible and convenient financing solution tailored to your needs. Our interest-only HELOC allows you to borrow, repay, and borrow again within your approved credit line, providing financial flexibility and control.

    Take advantage of our interest-only HELOC to leverage the equity in your home for home improvements, debt consolidation, education expenses, or other financial needs. Our dedicated loan officers are here to assist you every step of the way. Contact us today to learn more and explore how a HELOC from People Driven Credit Union can benefit you. Unlock the possibilities with a HELOC designed with your financial well-being in mind.

    Why choose our interest-only HELOC?

    Low Monthly Payments: During the 10-year draw period, you’ll make interest-only payments, which result in lower monthly payments than traditional loan options.

    Convenient Access: You can access your funds easily through our mobile app, online banking, phone, or checks, ensuring quick access to the funds when you need them.

    Flexible Repayment Options: Enjoy a 10-year draw period followed by a 20-year repayment period, which allows you to manage your payments more easily.

    Tax Deductibility: Consult your tax advisor to explore potential tax benefits, as interest paid on a HELOC may be tax deductible.cl

    Apply for a HELOC

    Key Features of a PDCU HELOC:

    • Financing up to 100% Loan-to-Value (LTV)
    • Competitive variable Annual Percentage Rate (APR) ranging from 8.25% to 13.00%, based on creditworthiness
    • Membership and eligibility requirements apply, with approval subject to application, credit, and property considerations.

    Apply for a HELOC

     

    5 reasons a Home Equity Loan could be a good choice

    • Home improvements that will add value
    • Emergency family expenses
    • Consolidating high-interest debt
    • Funding investments (use caution)
    • Financing Education

    Home Equity Loan Benefits

    Home equity loans provide an easy source of cash. Although higher than a first mortgage, the interest rate on a home equity loan is typically much lower than credit card rates. As such, the number one reason consumers borrow against the value of their homes via a fixed-rate home equity loan is to pay off credit card balances.

    Apply for a HELOC

    Should You Tap Your Home’s Equity?

    Conduct a careful review of your financial situation before you borrow against your home. A home equity loan can be a valuable tool for responsible borrowers. Your home’s equity can help cover the cost of a single, large purchase, such as a new roof on your home or an unexpected medical bill.

    Apply for a HELOC

  • Rates

    Home Equity Lines-of-Credit

    Rates Effective as of: 06-14-2024
    Max Term Origination Fee:Other Info Term Rate (APR)
    LTV Up to 80% $275Payment: 1.6% of Balance $50 Minimum As low as 8.25% APR
    LTV 81% to 90% $275Payment: 1.6% of Balance $50 Minimum As low as 9.00% APR
    LTV >90% to 100%$275Payment: 1.6% of Balance $50 MinimumAs low as 9.75% APR

    Home Equity Closed End Loans

    Rates Effective as of: 06-14-2024
    Other Info Max TermTerm Rate (APR)
    LTV Up to 80% Up to 60 MonthsAs low as 7.40%
    LTV Up to 80% 61-120 MonthsAs low as 7.65%
    LTV Up to 80% 121-180 MonthsAs low as 8.15%
    LTV Up to 80%181-240 MonthsAs low as 8.40%
    LTV 81% to 90% Up to 60 MonthsAs low as 7.90%
    LTV 81% to 90% 61-120 MonthsAs low as 8.15%
    LTV 81% to 90% 121-180 MonthsAs low as 8.65%
    LTV 81% to 90% 181-240 MonthsAs low as 8.90%
    LTV >90 to 100%Up to 60 MonthsAs low as 8.40%
    LTV >90 to 100%61-120 MonthsAs low as 8.65%
    LTV >90 to 100%61-120 MonthsAs low as 9.15%
    LTV >90 to 100%61-120 MonthsAs low as 9.40%

  • FAQs

    Frequently Asked Questions

    If you cannot repay your HELOC according to the terms, you risk foreclosure on your home, as the property is collateral for the loan. It's essential to borrow responsibly and within your means.
    In many cases, the interest paid on a HELOC may be tax-deductible if the funds are used for home improvements or other qualifying expenses. Consult with a tax advisor to understand your specific tax implications.
    Yes, there may be fees associated with a HELOC, such as an application fee, annual fee, closing costs, or early closure fee. It's essential to review the terms and conditions of the HELOC agreement to understand the fees involved.
    The amount you can borrow with a HELOC depends on factors such as the equity in your home, your creditworthiness, and the lender's policies. Typically, you can borrow up to a certain percentage (e.g., 80-90%) of your home's appraised value minus any outstanding mortgage balance.
    HELOC funds can be used for various purposes, such as home improvements, debt consolidation, education expenses, major purchases, or emergencies. It provides flexibility to access funds when needed.
    The interest rate on a HELOC is typically variable and may be based on an index, such as the prime rate, plus a margin determined by your creditworthiness. This means your payments can fluctuate based on market conditions.
    The draw period is the initial period (typically 5-10 years) during which you can access funds from your HELOC and make interest-only payments. After the draw period ends, you enter the repayment period, in which you pay back both principal and interest.
    Unlike a home equity loan, which provides a lump sum of money with fixed payments, a HELOC offers a revolving credit line with a draw period during which you can borrow and repay funds as needed. You only pay interest on the amount you borrow.
    A HELOC is a revolving line of credit that uses your home as collateral. It allows you to borrow funds as needed, up to a predetermined credit limit, using the equity you've built in your home.
Disclosures

Offer may be canceled without notice. Membership and eligibility requirements apply. Approval is subject to application, eligibility, credit, and acceptable property. Property insurance is required, and flood insurance is required when required. The minimum loan amount is $10,000.00. All closing costs are paid by the Credit Union unless disclosed with approval terms and conditions. The variable Annual Percentage Rate (APR) may be 8.25% to 13.00%, depending on creditworthiness. Origination Fee: $275. Other terms and conditions may apply; see your loan officer for details.

*APR = Annual Percentage Rate: The actual APR and loan term are subject to approval and may be determined based on the borrower’s creditworthiness, the amount borrowed, and the type, value, age, and condition of the collateral offered to secure the loan (when applicable). Rates are effective as of today and are subject to change.

Special Loan Rate Discount: Benefit from a 0.25% reduction when enrolling in our AutoPay service, which is included in the “as low as” rate advertised. The discount is available to those with Direct Deposit of payroll, social security, or retirement and AutoPay setup from a People Driven Credit Union checking or savings account.

Payment Example: Monthly payments of $20.00 for each $1,000 borrowed at 6.55% APR for 60 months.

You might consider getting one if you’re interested in buying a home at a lower price point and taking on the costs of fixing it up. Buyers choose to do this for several reasons, including personal pleasure or as a way to gain equity faster than they normally would when buying a move-in-ready house since you’re more in control of establishing the value of your home.

  • Fixed-rate, simple interest fully amortizing installment loans, no prepayment penalties.
  • Loan proceeds may not be used to refinance an existing People Driven Credit Union loan.

A Fixed Home Equity loan is a traditional closed-end loan often called a second mortgage. The borrower receives a one-time lump sum to be repaid over a fixed term and interest rate. In addition, monthly payments remain the same throughout the loan’s lifetime.

  • Maximum LTV is 100%
  • Minimum Loan Amount is $10,000
  • No prepayment penalty
  • Origination Fee: $275

People Driven Credit Union is an Equal Housing Opportunity Lender NMLS #776727
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