Home Equity Loan
Have
you been thinking about home repairs, college tuition, or debt
consolidation? A Home Equity Loan from the Tobyhanna Army Depot
FCU gives you more ways to save.
Home
Equity Loans are probably one of the most versatile loan solutions
offered by the Credit Union. By using
the available equity in your home, you can borrow against that
and use the loan for virtually anything. Consult with your tax
advisor, as there may even be tax benefits associated with this
type of loan.
Calculators
Should I refinance?
Home
Equity Products
Term |
Rate
(APR*) |
|
|
| |
|
|
5
Years |
6.49% |
|
15 Years |
6.99% |
|
180
Months |
5.03%**² |
|
20 Years |
4.00%**¹ |
|
Call
866-489-3804 to Apply 24/7!! |
What is Equity?
Equity
is defined as “residual value of a
business or property beyond any mortgage thereon and liability
therein. “ In normal terms you can calculate Equity in your
home using the following formula.
Value
of Home x 80% - Outstanding mortgage
balance = Available Equity
in Your Home
A Good rule of thumb is the longer you have paid on your house
since you bought it, the more equity you have built.
Why do equity loans take longer to close?
Many
documents are needed for a home equity loan. To properly ensure
you are getting
the
dollar amount you asked for, an appraisal is sometimes needed.
This can take a few days to complete. An appraisal, normally
performed by a third party, assesses the fair market value
of your home.
This value is the basis for the dollar amount applied for on
the home equity loan application. We take that value and multiply
it
by 80%, then subtract the outstanding mortgage and the result
is the maximum amount you may borrow against your home. Another
document
required for a Home Equity loan is a Title Search. This is normally
completed within one or two days of application. A Title Search
helps you and the Credit Union determine if there are any outstanding
liens on the home. This can be a good double check of your original
mortgage and also allows the Credit Union to make sure the house
is not encumbered by anyone else. In other words, a title search
covers the Credit Union’s collateral (your house) to make
sure there are no other liens against it.
If
you have any more questions or want more information please
feel free to e-mail
us or stop by any of our branch
locations for more information.
*Annual Percentage Rate
**
Annual Percentage Rates subject to change at any time, please
contact
a branch for the most current rates.
1 Subject to change based on prime rate.
2 Subject to change based on the 6 month treasury average auction
Please note all online loan applications are viewed during normal business hours.
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