Real Estate Equity Loan

Enjoy the freedom of fixed interest rates and no application or appraisal fees.
 
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Fixed interest rates

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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 from PSECU, you can. You'll enjoy fixed rates, no application fees, an easy application process, and potential tax benefits.*
 

 

What Is a Real Estate Equity Loan?

Real Estate Equity Loans are also called home equity loans. They have a fixed interest rate and fixed monthly payment, for the term of the loan. You receive the money you are borrowing in a lump sum payment upfront.
 
A Real Estate Equity Loan offers:
  • A 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
 
* Please consult a qualified tax advisor to determine if interest may be tax deductible.
 
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Why Choose a PSECU Real Estate Equity Loan?

A Real Estate Equity Loan lets you borrow a one-time, lump sum amount from your home’s equity. You can choose to fund a home improvement project, purchase additional property, pay college tuition, or consolidate other debt so you have one low rate and predictable monthly payments. 
 
With a Real Estate Equity Loan from PSECU, you can:
  • Borrow up to 90% of the appraised value, less any liens on the property being mortgaged. Real Estate Equity Loans have a minimum loan amount of $5,000. Existing PSECU equities may be refinanced for additional funds of $5,000 or more.
  • Secure a fixed interest rate based on the property’s loan-to-value ratio.
  • Potentially borrow from equity in land, subject to restrictions. Please contact us for details and application instructions.

Rates for PSECU Home Equity Loans

Valid as of 09/17/2019 3:39 PM 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 5.25% variable APR applies for loan-to-value (LTV) up to 80%. For a LTV greater than 80% up to 90%, the variable rate is 5.75% 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 0.5% 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 18.00%. 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.