A Home Equity Line of Credit is a secured open-end loan that
unlocks the value of your home allowing you to borrow against the equity.
Advances up to the maximum loan amount may be made repeatedly throughout the
15-year draw period1, subject to the terms of the account agreement.
There is no need to reapply or record a new deed of trust. Advances may be made
online in Member Access, through ASK SECU, at your local branch, or by
contacting the Call Center.
Most interest paid on mortgage loans (first and second mortgages) is deductible
on itemized returns. The Home Equity Line of Credit is a second mortgage;
therefore, you may realize substantial savings by borrowing against your home
as opposed to other methods of credit. Check with your tax advisor for specific
benefits that may apply to you.
Home Equity Line of Credit Specifications
Borrow up to 90% of the value of your home, less the amount owed on your
present mortgage2
When the home equity line of credit is subordinate to a mortgage with your
Credit Union or is the only mortgage against the home, the current rate for new loans is:
% APR3 using Payroll Deduction/Funds Transfer repayment
% APR3 using Direct Pay
When the home equity line of credit is subordinate to a mortgage with another lender, the current rate for new loans is:
% APR3 using Payroll Deduction/Funds Transfer repayment
% APR3 using Direct Pay
Life and Disability4 insurance available
No origination fees or discount points required
Minimum required payment based on interest rate, loan balance, and payment
frequency
Can serve as overdraft protection for your Credit Union checking account
Property must be in North Carolina or in a county in South Carolina, Virginia or Georgia
that adjoins North Carolina
Rental property is not eligible for financing
Existing home equity lines of credit may be modified to the current rate with no additional fee. Please see the Home Equity Line of Credit
Modification Program below.
Processing Fees
Fees may range from $300 to $7505.
Credit Line Worksheet
To estimate the potential equity, substitute your property value and mortgage
balance in the following chart:
Approximate Property Value
$150,000
Multiply by 90% (or 80%)2
x .90
SUBTOTAL
$135,000
Less Mortgage Balance
-$95,500
Estimated Credit Line
$39,500
Minimum Monthly Payment
$480
See payment schedule paragraph below for payment computation method.
You can apply for a new Home Equity Line of Credit or an advance on an existing line of credit in
Member Access. Our
loan application
can also be completed and provided to your local branch or to the Call Center.
Home Equity Line of Credit Modification Program
Members that have an existing home equity line of credit with the Credit Union may be able to lower their
interest rate to the current rate for new home equity lines of credit. In order to qualify for the
interest rate reduction, your first mortgage must be with the Credit Union or your home equity line of
credit must be the only mortgage on your property. To request that the interest rate on your current
loan be modified, complete the Home Equity Line of Credit Modification Form and return it to your local
branch for processing. There is no fee associated with modifying your home equity line of credit account.
1 Advances to your credit line cannot
continue beyond the 15-year draw period. However, your repayment period would
continue as originally scheduled until your remaining balance is paid-in-full.
2 The maximum combined loan amount at a 90% loan-to-value is
$400,000 for properties not located in a subdivision and $500,000 for
properties that are. Maximum combined loan amount for second home or vacation
home is 80% loan-to-value.
3 The interest rate on our Home Equity Line of Credit is adjustable and
subject to change quarterly. The rate is based on the 26-week Treasury Bill
rate set on or after the 15th day of the second month of the previous calendar
quarter. The rate may not change more than 1/2 percentage point each quarter. The
maximum interest rate of ceiling on the line of credit will be the beginning rate plus 5
percentage points or 12.75%, whichever is higher, but never more than 18%.
APR = Annual Percentage Rate.
4 If disability insurance is desired in conjunction with life
insurance, the payments will be $2 per thousand higher than disclosed under the
Payment Schedule.
5 Processing fees on lines of credit secured by property in Virginia and
South Carolina are higher and not all fees can be waived. Appraisal fees vary
by region. A financial services officer can assist you in determining the expense in your
area.
6 The teacher repayment plan allows for summer payments to be
skipped, thus coinciding with salary schedules.
