Put your house to work for you! Use the equity in your home to provide cash for home improvements, debt consolidation, college education and more. PSECU offers two equity products, both with attractive rates and terms. With both PSECU equity products, you'll enjoy competitive rates, no fees and an easy application process.
Benefits of a Home Equity Loan vs. Home Equity Line of Credit
You have worked hard to pay down your mortgage. When you need a little extra cash, borrowing against your home can be an affordable and convenient alternative to conventional lending products. In PA, home equity loan rates from PSECU are considerably lower than credit cards, and they may have certain tax advantages*, too.
A home equity loan is useful to finance repairs or renovations, consolidate debt or pay for other major expenses.
Real Estate Equity Loan vs. Home Equity Line of Credit
At PSECU, our goal is to match you with the financial solutions that work best for you. The first step in that is making sure you understand the specifics of these two home-secured borrowing options. We understand how confusing it can be to choose between different home equity products.
With a home equity loan, you receive the money you are borrowing in a lump sum payment with a fixed interest rate. With a home equity line of credit (HELOC), you have the ability to borrow or draw money multiple times from an available maximum amount. Unlike a home equity loan, HELOCs have adjustable interest rates.
Understanding Home Equity Line of Credit Loan-to-Value (LTV)
The loan-to-value ratio (LTV) is calculated as the amount of all mortgage and equity liens on your property divided by the appraised value of the property, expressed as a percentage. For example, a borrower requesting an equity loan of $20,000 on a home appraised at $100,000 with an existing mortgage lien of $50,000 would have a loan-to-value (LTV) ratio of 70% (50,000+20,000/100,000).
What You Need to Apply
When applying for a Home Equity Line of Credit or Real Estate Equity loan, we consider LTV, credit history, your household income and your employment status. PSECU members can start the application process online for the product of their choice.
|Home Equity Line of Credit Loan-to-Value up to 80%
|Home Equity Line of Credit Loan-to-Value greater than 80% to 90.00%
|5 Year Equity Loan-to-Value up to 80%
|5 Year Equity Loan-to-Value greater than 80% to 90.00%
|10 Year Equity Loan-to-Value up to 80%
|10 Year Equity Loan-to-Value greater than 80% to 90.00%
*APR denotes Annual Percentage Rate
*PSECU representatives cannot give tax advice, please consult your tax advisor.
HOME EQUITY LINE OF CREDIT: The 4.25% variable APR applies for loan-to-value (LTV) up to 80%. For a LTV greater than 80% up to 90%, the variable rate is 4.75% APR. There is a five-year advance period with a twenty-year repayment term (ten-year repayment on rental properties) from the date of the last advance. The minimum line of credit amount is $5,000. The minimum advance amount is $500.The monthly payment may vary. The variable interest rate will be equal to the prime rate or prime rate plus .5% as published in the last issue of the Wall Street Journal on the last day before the most recent full calendar month. The maximum APR is 18%. The minimum APR is 3%.
REAL ESTATE EQUITY LOAN: The 4.115% fixed APR applies for a 60-month term and LTV up to 80%. For a LTV greater than 80% up to 90% the fixed APR is 4.615% for 60 months. The 4.865% fixed APR applies for a 120-month term and LTV up to 80%. For a LTV greater than 80% up to 90% the fixed APR is 5.365% for 120 months.