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 Real Estate Equity Loan or Home Equity Line of Credit
You have worked hard to pay down your mortgage. When you need a little extra cash, borrowing against this 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 can be used 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.
A Real Estate Equity loan is similar to a second mortgage in that it is a loan for a predetermined amount, borrowed against your property. A Home Equity Line of Credit, on the other hand, is more like a credit card in that it allows you to borrow as much as you need at a time, within a certain limit. With a line of credit, you only pay interest on the amount you have taken out so far.
Generally speaking, a Real Estate Equity loan may be best when you need a large lump sum of cash quickly (as in for a home renovation). A Home Equity Line of Credit, on the other hand, may be best when you have ongoing expenses and want to avoid the high interest rates associated with a credit card.
Understanding Home Equity Line of Credit Loan-to-Value (LTV)
A loan-to-value (LTV) ratio is a measurement of the difference between the amount owed on your home and the amount it is worth. If the value of your home rises as you pay off your initial mortgage, your LTV will shrink.
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 4.00% variable APR applies for loan-to-value (LTV) up to 80%. For a LTV greater than 80% up to 90%, the variable rate is 4.50% 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.