Home Equity Loans

• Low monthly payments
• Fixed or Variable rates with no points
• Loans up to 100% of the appraised value of your home, less the balance on your first mortgage loan
• Terms up to 20 years
• Interest may be tax deductible, consult your tax advisor

(Interest may be tax-deductible, consult your tax advisor)

The Homestretch: Paying Off a Mortgage With a Home Equity Loan

At last, you can see the light at the end of the mortgage tunnel. After making payments for years, you've whittled down your mortgage balance to just a few thousand dollars, with only a few years of payments left.

Use your equity--You may be able to get rid of your mortgage and replace it with a home equity loan or line of credit.

The advantage of this strategy is that you usually pay much less in closing costs than you would in a mortgage refinancing. Also, your interest rate may be lower for a home equity loan or line than it would be for a regular short-term mortgage.

Suppose you take out a home equity line of credit rather than a home equity loan. You could trim additional money off your monthly principal and interest payments and boost your savings.

The risk with a home equity line of credit, however, is that it usually has a variable rate.

If you're deciding whether to pay off a small mortgage balance with a home equity loan or a line of credit--moving from a fixed rate to a variable rate--keep the relative risks of the latter in mind. And if you plan to stay only a few more years in your house, the risk will diminish. A credit union loan officer can help you size up your options.

Tip: Kitchen Spruce Up

Does your kitchen need a spruce up? According to Remodeling Online's 1998-1999 cost vs. value report, you can expect a 94% return on the investment you put into a minor kitchen remodeling job and an 87% return on a major kitchen remodel, if you sell your home within a year of making the improvements.

Loans:

All rates and terms are subject to change without notice and credit qualification.  APR is Annual Percentage Rate.  Managed risk lending pricing is used for vehicle and personal loans.  Maximum interest rate for loans will not exceed the maximum allowed by law.  The APR for certificate secured loans are based on current certificate rate plus 2.500% and subject to change on CD maturity. 

HELOC and Home Equity Loans available only on primary residences in Maryland, DC, and Virginia.  Minimum line of credit is $10,000.  Maximum line of credit amount is $250,000 up to 100% Loan to Value (LTV). Variable rates tied to Prime as published in the Wall Street Journal. 

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