A Homeowner Courtesy Lien is a lien placed against your primary residence in conjunction with an existing consumer loan. At your request, PSECU will place a lien against your primary residence thus converting your consumer loan to a Homeowner Courtesy Lien. There may be tax advantages to converting a consumer loan to a Homeowner Courtesy Lien. At the end of the year you will receive a 1098 form indicating the interest paid on the loan during the time it was a Homeowner Courtesy Lien.
The cost of converting a consumer loan to a Homeowner Courtesy Lien is $100 for Pennsylvania properties. This fee is non-refundable. There may be additional fees for out-of-state properties. Loans eligible for Homeowner Courtesy Liens include auto loans, personal service loans, signature loans, certificate secured loans and share secured loans. An additional fee will be collected to remove the lien from your property when the loan is paid off, or if you decide to remove the lien before the loan is paid off. This fee is currently $20 for properties in Pennsylvania. There may be additional fees involved for out-of-state properties. All fees associated with the homeowner courtesy lien program are subject to change at any time.
A Courtesy Lien can only be placed against your residence. Your residence must be located in the District of Columbia or the states of Connecticut, New York, New Jersey, Pennsylvania, Ohio, Delaware, Maryland, West Virginia, Virginia, North Carolina, South Carolina, Georgia or Florida.
If you are already a PSECU member, see if a Homeowner Courtesy Lien is right for you.
Any interest accrued on your loan, when the loan is secured by your primary residence, may not be tax-deductible for any portion of the loan amount that exceeds the fair market value of the primary residence. A tax advisor should be consulted since PSECU does not offer tax advice.
Information and interactive calculators are for informational purposes only and are not to be considered as tax advice. Please contact a qualified tax expert for advice. We cannot and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. The benefit of itemized deductions may be phased out based on certain income levels. Additional principal payments made to the loan may affect the results.