Mortgage & Home Equity Loans

Home Equity Line of Credit Loan Variable

Home Equity loans are secured by the equity in your home. Equity is the difference between the current market value of your home and the amount you owe on the home. Qualified applicants may borrow up to $200,000 based upon their financial condition and the value of their home.

Home Equity Line of Credit Example:

  • Appraisal of Home $ 400,000
  • Percentage Allowed x 80%
  • Percentage of Appraised Value $ 320,000
  • Less Mortgage Debt - $ 215,500
  • Potential Credit Line $ 105,000

Pay a minimum amount established by the amount of credit outstanding. Interest rates vary depending on your FICO score. Paying the minumum amout may result in an outstanding principal balance coming due and payable at contract maturity.

As you repay the loan, your available credit is restored by the amount of principal reduction.  There is no prepayment penalty on any Home Equity product. Read, the brochure, What you should know about Home Equity Lines of Credit.

Closing Costs

The Credit Union covers up to $600.00 of charge closing costs no annual service fees with a Home Equity loan.

Ease Your Tax Burden

Home mortgage interest for home equity indebtedness, up to $100,000 beyond acquisition mortgage debt, may be tax deductible. You should consult a tax advisor regarding the deductibility of interest on your home equity indebtedness. This makes a Home Equity loan an ideal way to borrow if you are a homeowner.

Home Equity loans are offered to members living in the following states:  Connecticut /NY

We do business in accordance with the Federal Fair Housing Law and Equal Credit Opportunity Act.

Fixed Home Equity Loan

Fixed Home Equity loan is similar to a secured installment loan. It is best used for one-time financing needs. With a Fixed Home Equity loan, you can choose fixed repayment terms borrow up to 200,000. You may be able to borrow up to 80% of the equity value of your home. Interest rates vary according to the length of time you choose to repay the loan and your FICO score. Budgeting your money is easier since the fixed monthly payment will not change. With regular monthly payments, the loan will be completely repaid on the specified maturity date..

Home Equity Line of Credit Example:

Appraisal of Home $ 500,000
Percentage Allowed x 80%
Percentage of Appraised Value $ 400,000.00

Less Mortgage Debt - $ 315,500
Potential Credit Line $ 84,500

Payment fixed for the life of the loan.

Closing Costs

The Credit Union cover up to 600.00 of  closing costs no annual service fees with a Home Equity loan.

Reverse Mortgages

What is a reverse mortgage?

A reverse mortgage is a unique type of loan that offers  homeowners age 62 and older an opportunity to convert the equity in their home into available cash. Financial security is achieved with this federally-insured loan without worries about repayment until you no longer live in your home. So you can never be forced out of your home for "missing a payment". The credit union has partnered with and outside firm, call our office for information.

Are there different types of Reverse Mortgages?

Yes, there are different types of reverse mortgage programs that are designed to fit different situations. Each program has a unique set of guidelines, which need to be considered to insure that you choose the program that right for you.   Some of the different types of loans available  are as follows:

FHA - Home Equity Conversion Mortgage [HECM]

The Home Equity Conversion Mortgage is the most popular and flexible reverse mortgage program available. This program gives the consumer the most available money and the most flexibility in considering how a consumer will take the available funds. This program is available with monthly and annual rate adjustment features.

Fannie Mae

The Fannie Mae reverse mortgage program is similar to the HECM program and the differences of this program may make sense in your particular situation.

Cash Accounts

The Cash Account programs are not insured by the U.S. Government. These programs are designed for homes that are higher in value and/or for consumers looking for a unique financial planning tool.

Who is eligible for a reverse mortgage?

If you own a single 1-4 family home or condominium and you are at least 62 years old, then you are eligible to apply. There are no credit or income qualifications to obtain a reverse mortgage .

How much money can I get?

The amount of cash available from a reverse mortgage depends on the following criteria: your age, your home's value and location, and current interest rates.

How do I receive the money?

You have several choices. You can take all of the money in one lump sum, as automatic monthly installments, a line of credit (most popular) or a combination of these. You have the ability to choose the option that will work the best for you.

Are there any restrictions on what I can use the money for?

No. It is your money to use as you would like. Some people pay for the necessities of home health care, medication, property taxes and home repairs; while others choose to travel or pursue an education; and still others just want the comfort of knowing they have a cushion against the unexpected.

How is a reverse mortgage different from a home equity loan?

Both loans convert the equity in your home into available cash, but in very different ways. With a Home Equity loan, you must have sufficient income to qualify and you must make monthly payments. With a Reverse Mortgage, there are NO income requirements, NO monthly payments, and the reverse mortgage PAYS YOU!

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