HELOC Credit Card

Looking for a great way to finance a home improvement project, or perhaps purchase a new recreational vehicle, or maybe even take that vacation you've been putting off? We can help! We are pleased to offer our Home Equity Line of Credit at a Reduced Rate of PRIME MINUS. No minimum withdrawals, no checks to deal with, and  We issue a credit card that can be used at your convenience to purchase just about anything. Need cash instead? We've got you covered, just stop in the Credit Union and present the card for a cash advance. Best of all, the interest may be tax deductible (consult your tax advisor).

* APR is Annual Percentage Rate

• Fully indexed APR is the Prime Rate minus .25%
• APR can change quarterly in January, April, July and October.
• Prime Rate is based on the US Prime Rate as published in the Wall Street Journal as of 7 days prior to the rate adjustment.
• Rates are determined at the time of application and are subject to change without notice.

FAQs

Question: What is a HELOC loan?

Answer: A Home Equity Line of Credit or HELOC, is a credit line secured by the equity in your home. Being a line of credit, as you pay off the balances, that amount becomes available to use again, without having to re-apply.

Question: What determines the dollar amount of my line of credit?

Answer: As with all our home equity loans, we will finance up to 90% of the appraised value (maximum Loan To Value - LTV). If you have an existing first mortgage, the difference between your first mortgage balance and 80% of the appraised value could be available to you for a HELOC loan.

Question: What if I don't have a current appraisal?

Answer: In some instances, we may be able to use a copy of your current property tax bill and a copy of the current declaration page from your homeowner's policy to determine the relative fair market value of your home, thus saving you the cost of an appraisal. However, if it's been a while since your last appraisal, it may be worth getting a current appraisal done: you may be surprised at how much your home has increased in value and you may discover you are under-insured.

Question: How do I access money from my HELOC loan?

Answer: Upon approval, we issue a Platinum credit card to access your line of credit. There is no minimum amount or purchase. You can use it for whatever you want. If you need cash, stop by either branch office and get a cash advance on the card at no cost.

Question: What interest rate is charged on my HELOC loan?

Answer: Your HELOC rate of interest is tied to a fully indexed rate, the US Prime Rate as published in the Wall Street Journal, less .25%. As the Prime Rate changes, so can the rate on your HELOC loan. HELOC rates are subject to change quarterly, January, April, July, and October. Change will occur at the next billing cycle following a quarter in which the Prime Rate changes.

Question: Is the interest paid on my HELOC loan tax deductible?

Answer: In most cases, interest paid on loans secured by your primary residence is deductible for income tax purposes, however, you should consult your tax expert to determine if the interest is deductible in your specific instance.

Question: What fees are involved with opening a HELOC loan?

Answer: Generally speaking, we may need an appraisal which runs approximately $350. We will need to have a title company perform a title search which runs approximately $75-$100. Credit reports will run between $15-$25. A flood certification will cost $13.50.  Last, a fee to file the mortgage with the Register of Deeds, which runs about $30.

Question: How long is my HELOC good for?

Answer: You can draw on your HELOC over a 10 year period, then there is a 10 year re-payment period. You may pay off your HELOC loan early without any prepayment penalty and close the loan.