Home Equity Line of Credit

The Credit Union offers a Home Equity Line of Credit product for primary residences, second homes and rental properties for properties located in North Carolina, South Carolina, Virginia, and Georgia. Members must reside in North Carolina or bordering states to be eligible.

A Home Equity Line of Credit is a secured open-end variable rate 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. Once the loan is set up, there is no need to reapply or record a new deed of trust to obtain advances. Advances on existing loans may be made via the SECU Mobile App, online in Member Access, through ASK SECU, at your local branch, or by contacting our 24/7 Member Services at (888) 732-8562


Obtain a Loan Advance from an Existing Loan

For an existing home equity line of credit, process a real-time loan advance below for immediate access to the funds:

1. Obtain via the SECU Mobile App: Perform Advance under the Actions section

2. Obtain via Member Access: Perform Loan Advance »

3. Obtain via ASK SECU Voice Response: (800) ASK-SECU or (919) 839-5400


Borrow up to 90% of the value of your home (90% for second homes and 65% for rental properties), less the amount owed on your first mortgage, if any.

The current rate for new lines of credit is:
  • % APR.2 Future rates and payments determined quarterly based on adding a margin of 2.25% to the index.3 The maximum quarterly rate adjustment is 0.50%. The minimum interest rate is 2.75% APR2 and the maximum interest rate will be the beginning rate plus 5% or 12.75% APR2, whichever is higher, but never more than 18% APR.2
  • No origination fees or discount points required
  • Minimum required payment based on interest rate, loan balance, and payment frequency
  • Can serve as protecting account for your Credit Union checking account through your participation in our Overdraft Transfer Service.
  • Home equity lines of credit are not available on manufactured homes
  • 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

Third Party Fees

Fees payable to third parties to open the line of credit may range from $0 to $1,600.4 An itemization of these fees is available upon request. Property insurance also required.

Credit Line Worksheet

To estimate your property's potential equity, substitute your property value and mortgage balance in the following chart:
Approximate Property Value
Multiply by 90%
SUBTOTAL
Less Mortgage Balance
Estimated Credit Line
Minimum Monthly Payment
$150,000
x .90
$135,000
-$95,500
$39,500
$480

This is only an estimate; the Credit Union may require an appraisal to determine the actual value of your home.

See payment schedule paragraph below for payment computation method.

Payment Schedule

Annual Percentage Rate2 Charged
Semimonthly/Biweekly per $1000
Monthly per
$1000
Teacher Monthly/Skip per $10005
Up to 12%
$6.00
$12.00
$16.00
12.25% to 15.00%
$7.00
$14.00
$18.00
15.25% and higher
$8.00
$16.00
$20.00

Home Equity Line of Credit Modification Program

Members who 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 Members may borrow against their available credit line for a period of 15 years, after which regular payments will continue until the loan is paid in full.
2 APR = Annual Percentage Rate. APR is your cost over the loan term expressed as a rate.
3 The index is the 26-week Treasury Bill rate set on or after the 15th day of the second month of the previous calendar quarter adjusted up to the nearest 0.25%. The recent index is 1.840% as of (8/19/19). Subject to a minimum adjusted index for this product of 0.50%.
4 Processing fees on lines of credit secured by property in Virginia and South Carolina are higher and not all fees can be waived. A Financial Services Officer can assist you in determining the expenses in your area.
5 The teacher repayment plan allows for summer payments to be skipped, thus coinciding with salary schedules.