Put your house to work for you! Use the equity in your home for home improvements, debt consolidation, college education and more. With PSECU equity products, you'll enjoy competitive rates, no application fees, an easy application process, and potential tax benefits**. PSECU offers two equity products to choose from.
Real Estate Equity Loan vs. Home Equity Line of Credit (HELOC)
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.
Real estate equity loans have a fixed interest rate and fixed monthly payment. You receive the money you are borrowing in a lump sum payment upfront. A home equity line of credit (HELOC) allows you to draw money, as needed during the draw period, multiple times up to your maximum credit line. You can take what you need, when you need it. Unlike a home equity loan, HELOC's have adjustable interest rates and the payment is based on the outstanding balance each month.
Understanding the Meaning of 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).
When applying for a Home Equity Line of Credit or Real Estate Equity loan, we consider LTV, credit history, and income for all applicants. 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 4.75% variable APR applies for loan-to-value (LTV) up to 80%. For a LTV greater than 80% up to 90%, the variable rate is 5.25% 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 current calendar month. The maximum APR is 18%. The minimum APR is 3.00%.
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.