Home Equity Line of Credit
Looking for a great way to finance a home improvement project, or purchase a new recreational vehicle, or maybe take that bucket list trip you've been putting off? We are pleased to offer our Home Equity Line of Credit at the low rate of 5.00% APR. No minimum withdrawals, no checks to deal with. We issue a VISA Platinum card that can be used at your convenience to purchase just about anything. Need cash instead - you're covered, just stop in at either of our branch locations and present the card for a cash advance. Best of all, the interest paid may be tax deductible, however, consult your qualified tax advisor.
|Rate: 4.00% APR*|
* APR is Annual Percentage Rate. The fully indexed APR is the Prime Rate minus 0.25%. 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.
Question: What is a HELOC loan?
Answer: A Home Equity Line of Credit or HELOC, is a line of credit secured by your primary residence. Being a line of credit means as you pay down the balance, that amount becomes immediately 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 of your home, minus the balance of any existing first mortgage. The amount is also subject to your demonstrated ability to repay the loan.
Question: What 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 surprised 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 $425 - $500. 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, everyone's 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.
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 also pay off the balance on your HELOC at any time, penalty free.