Real Estate Equity Loan
- Fixed amount of funds in one lump sum
- Fixed rate for the entire term of the loan
- Predictable monthly payments
- 5 and 10 year repayment terms
|5 Year Equity Loan-to-Value Greater than 80% to 90% 4.615%||5 Year Equity Loan-to-Value Up to 80% 4.115%||10 Year Equity Loan-to-Value Greater than 80% to 90% 5.365%||10 Year Equity Loan-to-Value Up to 80% 4.865%|
Home Equity Line of Credit
- Borrow only the money that you need, when you need it.
- Easy access to funds
- Repay only what you borrow, plus interest
- Flexible, variable rate
|Loan-to-Value Greater than 80% to 90% 5.750%||Loan-to-Value up to 80% 5.250%|
FAQs About Real Estate Home Equity Loans & HELOCs
For all applicants for a Home Equity Line of Credit or Real Estate Equity Loan, a few basic items that we consider are loan-to-value (LTV) for the property, your credit history, and your income.
- Single-family properties
- 2-4 Unit Properties
- Condominiums or townhouses
- Vacation homes
- Double-wide mobile homes built after June 1976, on permanent foundation, title retired
- Residential investment properties
Ineligible properties: We don’t offer Home Equity Loans for:
- Commercial properties
- Properties located outside Pennsylvania
- Properties with cesspools, cisterns, spring water, or gravity heat
- Properties located in an industrial-zoned area
- Timeshare properties
- Single-wide mobile homes
- Properties owned by a trust as identified on the deed
- Properties with gas, oil, or coal mining, or certain business operations
Loan-to-value ratio (LTV) tells us what portion of a home’s value you owe on new or existing loans (called “liens”). To calculate LTV, we divide the amount of all liens on your property by the property’s appraised value.
For example, suppose a borrower has:
- Home value: $100,000 appraised value
- Existing mortgage: $50,000
- Requested equity loan: $20,000
Including the new equity loan, the borrower’s LTV ratio would be 70%.
Rates for PSECU Home Equity Loans
|5 Year Equity Loan-to-Value greater than 80% to 90.00%||4.615%|
|5 Year Equity Loan-to-Value up to 80%||4.115%|
|10 Year Equity Loan-to-Value greater than 80% to 90.00%||5.365%|
|10 Year Equity Loan-to-Value up to 80%||4.865%|
|Home Equity Line of Credit Loan-to-Value greater than 80% to 90.00%||5.750%|
|Home Equity Line of Credit Loan-to-Value up to 80%||5.250%|
HOME EQUITY LINE OF CREDIT: 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. For loan-to-value (LTV) up to 80%, the variable interest rate is equal to the prime rate. For a LTV greater than 80% up to 90%, the variable interest rate is prime rate plus .5%. 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 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.
*APR denotes Annual Percentage Rate