Home Equity Line of Credit

Put the value of your house to work for you with a home equity line of credit.
Variable interest rate

Cash when you need it

No application or appraisal fees

Want to use your home’s equity for home improvements, debt consolidation, college education, and more? With a home equity loan at PSECU, you can. You'll enjoy competitive rates, no application fees, an easy application process, and potential tax benefits.*
 
Find out more about our flexible options to get cash out of your home.


What Is a HELOC?

With a Home Equity Line of Credit (HELOC), you can draw money from the line of credit as needed during the draw period. You can make multiple withdrawals during this time, up to your maximum credit line
 
The draw period lasts five years. The repayment period gives you up to 20 years from the date of the last advance to repay the balance. 
 
Unlike a real estate equity loan, HELOCs have adjustable interest rates. Your payment is based on the outstanding balance each month.
 
A HELOC might be right if you:
  • Intend to borrow only the money that you need
  • Need flexible access to funds
  • Want to repay only what you borrow plus interest
  • Are looking for a variable rate
 
* Please consult a qualified tax advisor to determine if interest may be tax deductible.

Why Choose a HELOC From PSECU?

Our low-rate HELOC provides flexible access to cash, when you need it. Because you borrow as little or as much as you need from your line of credit, a HELOC is a great tool for financing your next home improvement project, paying for college, or even checking something off your bucket list.
 
A HELOC from PSECU offers:
  • Minimum line of credit amount of $5,000, with a minimum advance of $500
  • No application or appraisal fees
  • Ability to borrow up to 90% of the appraised value, less any liens on the property being mortgaged
  • Five-year advance (draw) period
  • 20-year repayment term (10-year repayment on rental properties) from the date of the last advance
  • Variable interest rate that offers affordable payments

Rates for PSECU Home Equity Loans

Valid as of 08/24/2019 3:12 AM EDT
Description APR*
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

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.

For any PSECU real estate loan we issue, we must be the first or second lienholder for the loan. All properties must be located in Pennsylvania.

Eligible properties:

  • 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%. 

Remember, with any kind of home equity loan, your home provides the collateral on the loan. That means that if you don’t make payments, your home is at risk. Be sure you can manage the payments before taking out a home equity loan or line of credit.
*PSECU representatives cannot give tax advice. Please consult your tax advisor.

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.