Home Equity Lines of Credit
A Home Equity Line of Credit from CPM Federal Credit Union allows you to take advantage of the equity you’ve built in your home. A Home Equity Line of Credit is a flexible and affordable way to use your home’s equity for some of life’s largest expenses. For example, we find that a lot of borrowers want to:
- Remodel or renovate
- Pay for a family member’s college education
- Finance the purchase of a vacation home
- Consolidate high-interest debts
- Take that much-deserved dream vacation
How does a Home Equity Line of Credit work?
The equity is calculated by using the appraised value as stated by an approved appraisal company. The difference of the appraised value minus any outstanding mortgages equals your total equity. Once your HELOC is established you can easily transfer from your CPM HELOC to your CPM checking account using our mobile and online banking. The process is as simple as transferring from your CPM savings account to your checking account, and the transferred funds are available immediately. There is no need for separate checks or a separate debit card to access your HELOC funds. You can also transfer just as easily in the other direction when you want to pay down your HELOC. If you do not have online banking, you can request checks or request a withdrawal at any CPM location.
Advantages of Home Equity Lines
- Home equity lines are attractive to borrowers for a few main reasons:
- Extended repayment schedules help to keep your payment low and affordable
- Have a lower interest rate (or APR)
- Easy access to your Line of Credit using online banking
- Payments on a home equity line may be tax deductible (consult your tax advisor)
- Fixed Rate Option offers a fixed rate throughout the life of the loan and a set payment. Rates as low as 4.99%!
- Variable Rate Options offers a variable rate tied to the Prime rate. 6 month Introductory rates as low as 0.99%/4.25% after introductory period*
- Borrow up to 90% of your home's value
*Variable rate based on Prime (currently 3.25% as stated in the Wall Street Journal). Discount rate is for the initial 6 months, rate will be adjusted to the qualifying tier rate. Qualifying rate will be the prime rate index plus margin up to a maximum rate of 18%. Current projected rate after initial discount as low as 4.25% up to 90% LTV.
APR - Annual Percentage Rate. Membership rules and restrictions apply. Terms and conditions subject to change without notice. Offer subject to credit approval, not all borrowers will qualify. Rates depend on LTV, lien position, and credit score. The offer is limited to currently occupied, single-family dwellings and is not valid for rental properties, mobile homes or residential lots. Property insurance is required as a condition of the loan. Closing cost are associated with this loan. To open and maintain a Home Equity Line of Credit, you may have to pay certain fees to third parties. These fees generally total $750.00- $2000.00. At your request, an itemization of these fees can be provided and are estimated. Prime rate = WSJ rate currently 3.25%
Rates accurate as of February 17, 2021.