Home Equity Loans & Lines - East County Schools Federal Credit Union

Home Equity Lines of Credit (HELOC) can be used to

Borrow for Home Improvements
College Tuition
A New Vehicle
A Vacation

Medical Bills
A Family Wedding
Starting a Home-Based Business
Any Number of Other Major Expenditures

Enjoy interest rates are much lower than what you'd pay on a credit card or personal loan
Draw only the funds you need, interest accrues only on the amount outstanding
Interest you pay on a home equity loan can be tax deductible, which further reduces the cost of borrowing*
Draw on your approved limit for 10 years, with a 15- year re-payment thereafter
Home Equity Convenience Checks allow easy access to your funds
No Annual Fees

For Equity Access Line of Credit Loan limits up to 80% of the appraised value (Loan to Value or LTV) of your primary or secondary residence, with a maximum of $250,000 and a competitive variable rate tied to Prime

Equity Credit Line Loan limits up to 80% of the appraised value (Loan to Value or LTV) of your primary or secondary residence, with a maximum of $200,000 and a competitive variable rate tied to Prime.

Equity Plus Credit Line With our Equity Plus you can borrow up to 100% of the appraised value (Loan to Value or LTV) of your primary residence, with a maximum of $100,000.

Investor Equity Credit Line If you have Investment Property, this is the credit line for you. Loan limits up to 75% of the appraised value (Loan to Value or LTV) on your Investment (rental) Property, with a maximum of $50,000.

Pros and Cons of Lines vs. Loans

Description	Pros of Product	Cons of Product	Common Uses of Product
Equity Credit Line (to 80% LTV)	Access to short term cash. 10 years to draw Can use it up to 10yrs. Doesn’t have to reapply for 10yrs. Check access, revolving.	No protection in rising rate environment. If the home value goes down and needs to sell house they have to pay the difference. Rate index is too high.	Home Improvements. Repairs, additions, remodels, weddings. Payoff bills, car loans, home improvements, college for kids. Home improvement, vacations, etc.
Equity Plus Credit Line (to 100% LTV)	Full equity cash out. Can use it up to 10yrs. Doesn’t have to reapply for 10 yrs. More money out of equity. Maximizes the borrowing power for our members.	Loss of value over time. If the home value goes down and needs to sell house, they have to pay the difference. Higher rate. Places most important asset at risk in case of default.	Cash out to remodel. Pay off bills, car loans, home improvements, college for kids. Other debt consolidation, student loans.
Fixed Rated Second Loan (to 80% LTV) up to 180 months	Fixed rate, same payment Good to know when it will be paid off. Fixed rate. Fixed rate allows for budgeting exact debt servicing.	Have to reapply to add to loan Will need to reapply to get more money and if the home value goes down in value and needs to sell house, they have to pay the difference. Risk of being upside down in the future. Higher rate, 1 time advance.	Pay off debts Pay off bills, car loans, home improvements, college for kids. Fund long-term expenditures.
Term Equity Plus Loan (to 90% LTV)	Fixed rate, same payment Good to know when it will be paid off. More money out of equity. Fixed rate. Fixed rate allows for budgeting exact debt servicing.	Have to reapply to add to loan. Will need to reapply to get more money and if the home value goes down in value and needs to sell house, they have to p[ay the difference. Risk of being upside down in the future. Higher rate, 1 time advance, places home in higher risk of default	Pay off debts Pay off bills, car loans, home improvements, college for kids
Investor Equity Credit Line (to 70% LTV)	Cash draw when needed Members would like to access their rental equity rather than their own home. Can use it up to 10 yrs.	Loss of equity over time (possible) If the home value goes down in value and needs to sell house they have to pay the difference	Liquidity for a business • Repairs, upgrades • Pay off bills associated to the rental to keep it separate from their home bills and rental improvements or whatever they want

Online Banking

Home Equity Lines & Loans

Pros and Cons of Lines vs. Loans

Loan Rates

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