What is a Home Equity Loan?
A home equity loan acts as a second mortgage on your house. However, if you already own your home and you do not have any other mortgages as a part of the house, the home equity loan will be your only mortgage. The equity in your home represents the parts of your house that have already been paid off and therefore do not have a mortgage attached to it. When you start to pay off your main home loans, the equity in your house will increase. In addition, if the property value in your area increases, the value in your home increases as well. This means that the home equity value will also increase.
FCACU Standard Home Equity Loans
A typical home equity loan will normally be similar to the average mortgage, in which case you will borrow a certain amount of money from our credit union based on the amount of equity that you have available. After borrowing the money, you will pay it back over a specified amount of time, up to 15 years. You will also have to pay a specific interest rate as well, which will be agreed upon prior to the loan being made. Our Home Equity loan offers a maximum loan-to-value of 80% with a minimum loan amount of $10,000. You may even be able to deduct the interest on your taxes. What a great way to borrow!