Home Equity Line of Credit

A home equity line of credit (HELOC) unlocks the value of your home by allowing you to borrow against the equity through a revolving line of credit. Because the loan is secured by your home, the interest rate may be lower than other unsecured types of credit, making it an ideal solution to finance home improvements or other major expenses.

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Why Choose an SECU Home Equity Line of Credit?

Our home equity line of credit product is available for primary residences, second homes and rental properties,1, 2, 3 with no complicated rate buy-downs or discount points. Our product includes the following features:

  • No application or credit report fees
  • No origination fees4
  • In-branch closing option available5
  • Advances can be made repeatedly throughout the 15-year draw period6
  • Minimum required payment based on interest rate, payment frequency, and previous highest loan balance, unless advancing without a previous balance
  • Can serve as a protecting account for your Credit Union Checking account through participation in our Overdraft Transfer Service7

Understanding Your Finance Options

New lines of credit available for initial APR8 of % until the first quarterly rate change; % APR based on current index and margin.9 Future rates and payments determined quarterly by adding a margin of 2.25% to the index.10

The maximum loan-to-value (LTV) financing amount11 available depends on many factors, including the occupancy status of the home and the amount of existing mortgage debt.
Primary Residence12
90% LTV, less amount owed on first mortgage
Second Home
90% LTV, less amount owed on first mortgage
Rental Property
65% LTV, less amount owed on first mortgage
To estimate your available equity, first estimate your home’s current value and determine the maximum loan amount available based on the occupancy status. Then subtract any existing mortgage debt owed on your home to determine your allowed credit line.

For example:
Approximate Property Value $150,000
90% LTV - Multiply by 0.90 x 0.90

Subtotal $135,000

Less Mortgage Balance -$95,500

Available Equity $39,500
This example estimates a primary residence with an approximate property value of $150,000. An appraisal may be required to determine the actual value of your home.
Your minimum payment due is based on the APR, your loan balance,13 billing frequency and repayment type. The tables below show the minimum payment amount per $1,000.

Payment per $1,000 Borrowed

Standard Repayment

APR8
Monthly
Semi-Monthly /
Bi-Weekly
Up to 12%
$12.00
$6.00
12.25 - 15.00%
$14.00
$7.00

Summer Skip Months Repayment14

APR8
Monthly
Semi-Monthly /
Bi-Weekly
Up to 12%
$16.00
$8.00
12.25 - 15.00%
$18.00
$9.00

How to Access Your Funds

If you have an existing home equity line of credit, process a real-time loan advance for immediate access to your funds.
1 Properties must be located in North Carolina, South Carolina, Virginia, or Georgia, and members must reside in North Carolina or bordering states unless further restrictions apply.
2 Manufactured homes cannot serve as collateral.
3 Property insurance is required.
4 Fees payable to third parties to open the line of credit generally range from $300 to $1,600. Processing fees on lines of credit secured by property in Georgia, Virginia and South Carolina are higher and not all fees can be waived. An itemization of these fees is available upon request. A loan officer can assist you in determining the expenses in your area.
5 Restrictions may apply that require your loan close with an attorney in certain situations. Contact a financial services officer for more information.
6 Members may borrow against their available credit line, up to the maximum line amount, for a period of 15 years, subject to the terms of the account agreement. After the draw period ends, regular payments will continue until the loan is paid in full.
7 Overdraft transfers made from home equity lines of credit are considered loan advances. Transfers can be made up to 100% of the unused line of credit plus $200. Fees may apply. See the Overdraft Transfer Services page for more details.
8 APR = Annual Percentage Rate. APR is your cost over the loan term expressed as a rate.
9 Rate is subject to change quarterly. The maximum quarterly rate adjustment is 0.50%. The minimum interest rate is 2.75% APR and the maximum interest rate will be the beginning rate plus 5% or 12.75% APR, whichever is higher, but never more than 18% APR.
10 The index is the 26-week Treasury Bill rate set at the first auction held on or after the 15th day of the second month of the previous calendar quarter adjusted up to the nearest 0.25%. Subject to a minimum adjusted index for this product of 0.50%.
11 Atypical homes may have additional financing limitations, such as homes registered with Historic Preservation.
12 Primary residence must be a single-family home.
13 Payment based on the previous highest loan balance. If loan balance was previously paid to $0, the required payment amounts are reset.
14 The Summer Skip Months plan allows for summer payments to be skipped coinciding with salary schedules. Only available to school employees who are not paid during the summer months.