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 in your home 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. A credit union representative will then help you determine the amount available for a line of credit. Simply write a check to access your HELOC account.
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 Line of Credit
- Payments on a home equity line may be tax deductible
- 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. Rates as low as 4.25%
- Borrow up to 85% of your home's value
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. Prime rate = WSJ rate currently 3.25%
Rates accurate as of April 28, 2020.