Service One Federal Credit Union (Service 1 FCU) offers both fixed-rate home equity loans and variable-rate home equity lines of credit (HELOCs) to help members access the equity in their homes. Both options allow borrowers to use their home as collateral to secure funding for various needs.
Service One FCU Home Equity Loan
Service 1 FCU’s fixed-rate home equity loan provides a lump sum of money at a set interest rate for a specific term. The interest rate is determined by creditworthiness, loan term, and combined loan-to-value (CLTV) ratio. The CLTV ratio, which compares the loan amount to the appraised value of the home, must be 80% or less.
Loan amounts range from $10,000 to $150,000. Applicants must meet Service 1 FCU’s membership eligibility requirements and undergo a credit approval process. As with any loan, fees and closing costs may apply. Homeowners may also be required to obtain flood and/or property hazard insurance.
Service One FCU Home Equity Line of Credit (HELOC)
A HELOC from Service 1 FCU provides a revolving line of credit, allowing borrowers to access funds as needed up to a predetermined limit. The interest rate on a HELOC is variable and based on the prime rate plus a margin. The prime rate used is the highest rate published in The Wall Street Journal’s Money Rates Table on the last business day of each quarter. The margin added to the prime rate can be up to 3.5%, depending on creditworthiness.
Similar to the home equity loan, the CLTV ratio for a HELOC must be 80% or less, and the credit line amounts range from $10,000 to $150,000. The APR can range from a low of 4.00% to a maximum of 18%. Membership eligibility and credit approval are required. Fees, closing costs, and insurance requirements may apply.
Choosing Between a Home Equity Loan and HELOC from Service One FCU
Choosing between a home equity loan and a HELOC depends on individual financial needs and goals. A fixed-rate home equity loan offers predictable monthly payments, making it suitable for large, one-time expenses. A HELOC, with its variable rate and flexible access to funds, is often preferred for ongoing expenses or projects.
Contacting Service One Federal Credit Union directly is recommended to discuss specific needs and determine the best home equity solution. Rates, terms, and conditions are subject to change. Service 1 FCU is an Equal Housing Lender.
