Utilize one of your most powerful assets, the equity in your home, to borrow funds for a variety of reasons. Because the loan is secured by the equity in your home, rates are much more favorable than with an unsecured loan. We offer a fixed-term Home Equity Loan as well as a revolving Home Equity Line of Credit.
Home Equity Loan (Fixed-Term)
With a Home Equity Loan, you can borrow up to 80% of your home’s equity and receive the funds in one lump sum up-front. Your rate and monthly payment will not fluctuate throughout the life of the loan. City FCU offers low, fixed rates with terms up to 15 years. Home Equity Loans can be a great way to pay for home repairs or renovations, education expenses, debt consolidation or other major expenses.
Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) uses the equity in your home to secure the loan, and offers a flexible revolving line of credit. Unlike other HELOCs, City FCU offers a fixed-rate product, so your rate won’t fluctuate after opening. You can withdraw funds from your line as needed, and only pay interest on the amount you have borrowed. A HELOC can offer tax savings, as interest paid on the loan may be tax deductible.*
With a HELOC, you can borrow up to 80% of the equity in your home. You’ll have 10 years to withdraw from the line of credit (known as the “draw period”), in minimum amounts of $4,000. Once the draw period has closed, the repayment period begins; which could be up to 20 years depending on balance.
Home Equity Loans are available in Armstrong, Carson, Potter and Randall County only. You must maintain insurance on the property. Closing cost fees may be charged by City FCU and third party companies, and may include credit report, flood certification, appraisal, administration and recording fees and title search. Maximum LTV and rate vary by credit and term of loan. Maximum repayment term varies by loan balance.
*Consult a tax advisor regarding deductibility of interest paid on your HELOC.