Mortgage & Home Equity Loans
We have what you're looking for! Whether you need financing for a new home or improvements to your current home, call our experienced Lending Specialists. They will be able to help you assess your needs and offer you the best rate for your current situation. Let them explain the differences and benefits of Fixed Rate Mortgages and Adjustable Rate Mortgages (ARMs). CHECK OUR CURRENT MORTGAGE RATES on-line today.
Home Equity Lines of Credit and Fixed Rate Home Equity Loans
So, what's the difference? A home equity line of credit (HELOC) works like a credit card secured by the value in your home. You receive special "equity" checks that can be used for purchases up to your approved available balance. Simply write the check for the loan amount you need. Some lenders will also provide credit card-like access to your HELOC account. You use this like a credit card and all transactions are posted to your home equity line of credit account.
Home equity line rates are variable and indexed to the PRIME RATE. This means your rate can increase or decrease whenever the PRIME RATE changes. The annual percentage rate (APR) is calculated by taking a margin (percentage) and adding it to the PRIME RATE.
The interest charged to your home equity line of credit account will be only on the amount you actually use, not on the total amount of your credit line.
You should be able to pay down your home equity line account at any time without prepayment penalties. If not, find another lender! At Fond du Lac Credit Union there is no prepayment penalty.
The fixed rate home equity loan is just as the name implies - a fixed rate loan. The entire loan amount is advanced to you when your equity loan is approved, with no further advances made on your account.
Fixed Rate Home equity loan rates are set by the financial institution. The rate and payment will remain the same during the repayment period of the loan. The payment amount and number of payments depend on the repayment terms of your loan. Lenders offer a range of repayment terms, generally from 1-20 years.
You may pay off your home equity loan at any time, but check the lender's terms for any prepayment penalty. At Fond du Lac Credit Union there is no prepayment penalty.
For either type of home equity loan, the total loan amount approved depends on your Loan to Value (LTV) position, which is determined by taking a percentage of the appraised value of your home and subtracting the balance you owe on your existing mortgage.
Home equity loans can be used for almost any reason, but are best used for home improvements that will increase the value of your home. New windows, a porch or deck, additional bathrooms, living space, and updated kitchens are great options for increasing value.
The Lending Specialists at Fond du Lac Credit Union will be happy to explain all of our Home Equity Loan options!
Already have a loan? We may still be able to help you. CHECK OUR RATES -- If our rate is lower than what you're currently paying, you may be paying too much -- Call our loan department to see how we can help.