Considering leveraging your home’s equity? Service 1 Federal Credit Union provides tailored home equity solutions to help you achieve your financial goals. Whether you’re planning home improvements, consolidating debt, or funding a major purchase, understanding your options is the first step. We offer both Home Equity Loans and Home Equity Lines of Credit (HELOCs), each designed to meet different borrowing needs.
Home Equity Loans: Fixed Rates, Predictable Payments
A Home Equity Loan from Service 1 Federal Credit Union allows you to borrow a lump sum of money secured by your home’s equity. This type of loan features a fixed Annual Percentage Rate (APR), meaning your interest rate remains constant throughout the loan term. This predictability makes budgeting easy with consistent monthly payments.
Key Features of our Home Equity Loans:
- Fixed APR: Enjoy stable interest rates for the life of your loan. Rates and terms are subject to change and are based on creditworthiness.
- Loan Amounts: Borrow from $10,000 up to $150,000, depending on your equity and needs.
- Loan-to-Value (CLTV): We typically require a Combined Loan-to-Value ratio of 80% or less.
- Property Eligibility: Loans are secured by a first or second mortgage lien on your home. Not all properties may qualify.
- Fees and Costs: Closing costs and other fees may apply. Property hazard and/or flood insurance might be necessary.
- Membership Requirement: Membership eligibility with Service 1 FCU is required.
To determine if a Home Equity Loan is right for you, it’s essential to consider your credit score and financial history. Contact Service 1 FCU to discuss your specific situation and receive detailed information about current rates and terms. Our team can guide you through the application process and answer any questions you may have.
Home Equity Line of Credit (HELOC): Flexible Access to Funds
For ongoing or variable borrowing needs, a Home Equity Line of Credit (HELOC) from Service 1 Federal Credit Union offers flexibility. A HELOC is also secured by your home’s equity, but unlike a loan, it provides a revolving line of credit. You can draw funds as needed, up to your credit limit, during the draw period.
Understanding HELOCs at Service 1 FCU:
- Variable APR: HELOC APRs are variable and tied to the prime rate, specifically the highest prime rate published in the Money Rates Table of The Wall Street Journal. As the prime rate fluctuates, your APR will also change.
- Prime Rate Plus Margin: Your APR is calculated based on the prime rate plus a margin, which can be up to 3.5%, depending on your creditworthiness and other factors.
- APR Range: While variable, our HELOC APRs range from a low of 4.00% APR to a maximum of 18%. Rates are based on creditworthiness, term, and CLTV ratio.
- Credit Line Amounts: Access a credit line from $10,000 to $150,000.
- CLTV Requirement: Similar to Home Equity Loans, a CLTV of 80% or less is generally required.
- Property Qualifications: HELOCs are secured by a mortgage lien; property eligibility applies.
- Potential Costs: Be aware of possible closing costs and fees. Flood and/or property hazard insurance may be required.
- Membership Details: Service 1 FCU membership is a prerequisite.
A HELOC can be a powerful financial tool, offering flexibility for renovations, unexpected expenses, or ongoing projects. However, it’s crucial to understand the variable nature of the APR and plan accordingly. Reach out to Service 1 FCU for complete details on HELOCs, including current prime rates and margin information.
Choose the Right Home Equity Solution with Service 1 Federal Credit Union
At Service 1 Federal Credit Union, we are committed to providing transparent and helpful financial services. Both our Home Equity Loans and HELOCs can be valuable resources for homeowners. Contact us today to explore which option best aligns with your financial objectives. Our experienced team is ready to assist you.
Equal Housing Lender. Service 1 FCU NMLS #441347.
Disclaimer: All Service 1 FCU loan programs, rates, terms and conditions are subject to change at any time without notice. Credit is subject to approval; not all applicants will qualify.
