Home Equity Fixed


Upgrading your kitchen? Sending a child off to college? Or maybe you're just sick of the cold winter and want to get away somewhere warm. Whatever the reason, a home equity loan may be the perfect solution to your financial needs. All it takes is a phone call to find out how much you qualify for. Also, you may be able to deduct the interest on you tax return ( consult a qualified tax expert as to the deductibility of the interest)

Rate          APR*

4.95%        5.012%

 

* APR is Annual Percentage Rate. APR based on $100,000.00 loan and 80% Loan-to-Value (LTV).  Rates are subject to change.

FAQs


Question: What is the difference between this loan and a HELOC loan?

Answer: Our fixed rate home equity loan is not a revolving line of credit like our HELOC loan. There is a fixed term and the rate is locked in for the predetermined term of the loan.


Question: How much can I borrow on a fixed rate home equity loan?

Answer: We will finance up to 80% of the appraised value of the home (LTV - Loan To Value). You can calculate the amount by subtracting the balance of your 1st mortgage (if any) from 80% of your home's value. This will give you the maximum amount you can borrow, however, you may certainly borrow less. 


Question: What can I do if I don't have a current appraisal of my house?

Answer: Depending on the situation, we may be able to use a combination of your property tax bill and the declaration page of your homeowner's policy to determine the value of your home, thereby eliminating the need for an appraisal. However, if it has been a while since you had an appraisal on your home and your situation calls for maximizing the loan potential, an appraisal may be a justified expense. Also, you may be surprized at how much your home's value has increased and may find yourself currently under insured.


Question: What are the fees associated with a fixed rate home equity loan?

Answer: As mentioned earlier, we may need to have your property appraised, which runs approximately $275 - $350. We will also require a title search to determine if there are any additional liens against your property. This runs between $75 - $125. Finally, there will be a minor filing fee to file the 2nd mortgage with the Register of Deeds office.


Question: Is the interest on this loan deductible on my income taxes?

Answer: Generally speaking, the interest paid on loans against your primary residence is deductible on your income taxes. However, every situation is unique and you should consult your tax expert on your particular situation and the deductibility of your loan.


Question: Can I pay off this loan early without penalty?

Answer: Yes. There is no prepayment penalty on any loans at Central Wisconsin Credit Union.