HOME EQUITY LINE OF CREDIT LOAN
The amount of your Home Equity Line of Credit (HELOC) is based on the value of your home. A MVFCU HELOC has the following criteria:
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Owner occupied single family or duplex residential properties are eligible for the Home Equity Line program. |
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Your home must be 100% complete in order to qualify for a Home Equity Line of Credit. |
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Home Equity Lines are available for as little as $10,000.00 or up to $500,000.00 of the qualifying equity in your primary residence. The maximum loan amount available for a 1st lien position is $500,000.00 not to exceed 80% of the value and up to $300,000.00 for a 2nd lien position, not to exceed 75% of the value. |
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The value of your home may be established by an MVFCU Property Evaluation at no cost under certain circumstances; or if needed by a fee appraisal at cost. Ask a representative for details. |
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This loan program has a variable interest rate which can be adjusted monthly. Ask a representative for details. |
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There is no annual fee and no minimum draw amount; fixed rate conversions are also available. |
How To Estimate the Loan Amount You Can Borrow
First - determine the value of your home.
For a rough estimate you may use the borough/municipality’s assessed value for your home. A fee appraisal may be necessary.
Next - determine the type of HELOC you can apply for.
If you own your home outright, apply for a first deed of trust HELOC. If you already have a mortgage on your home, apply for a second deed of trust HELOC.
Finally - calculate the available equity you have in the home.
Complete the correct equation based on the HELOC type you qualify for:
First Deed of Trust HELOC:
Value of Home * 80% = Usable Equity
Second Deed of Trust HELOC:
(Value of Home * 75%)
- Current Mortgage Balance = Usable Equity
Your result - the Usable Equity - is your estimate of the maximum line of credit you may apply for based upon your home equity (within the limits defined on line three of the table of HELOC criteria above). MVFCU's calculation may differ from your estimate. |
Notes on MVFCU Home Equity Line of Credit Loans:
Prepayment: You will NEVER have a pre-payment penalty on any loan with MVFCU!
Fixed Interest Rate: Once a year and at any time during the year, the Home Equity Line of Credit (HELOC) Loan allows you to convert all or a portion of the outstanding balance to a fixed interest rate (the minimum conversion amount is $10,000.00, with a 15-year repayment term). There is a maximum of two (2) fixed rate conversions at any given time for the HELOC Loan. A first deed of trust fixed rate conversion will be the prevailing "Prime Rate" plus a margin of 0.75% at the time the conversion is requested. A second deed of trust fixed rate conversion will be at the prevailing "Prime Rate" plus a margin of 1.25% at the time the conversion is requested. Fixed rate conversions have a minimum interest rate 5.75% for a first deed of trust and 6.25% for a second deed of trust, with a maximum interest rate on either of 15%. Fixed rate conversions must be requested in writing at the time of conversion either in person or by mail. HELOC fixed rate option forms will be provided to you. |
