A home equity loan can help you finance a major purchase or consolidate debt. If you’re looking to consolidate your bills, undergo a major home improvement project, fund your child’s college tuition, or even plan the wedding of your dreams, Members Trust Federal Credit Union can help you put your home’s value to work for you.
A home equity loan acts as a second mortgage on your house. However, if you already own your home and you do not have any other mortgages as a part of the house, the home equity loan will be your only mortgage. The equity in your home represents the portion of your home that has already been paid off and therefore does not have a mortgage attached to it. When you start to pay off your main home loan, the equity in your house increases. In addition, if the property value in your area increases, the equity in your home increases, as well.
A typical home equity loan will be similar to the average mortgage, where you borrow a certain amount of money from Members Trust, based on the amount of equity that you have available. After borrowing the money, you will pay it back over a specified amount of time, up to 15 years. You will also have to pay a specific interest rate as well, which will be agreed upon prior to the loan being made.
Because Home Equity Loan regulations vary from state to state, the Home Equity Loan products offered will vary, as determined by state law.
- Loan will be secured by a member’s primary residence or agricultural real estate (provided the borrower is engaged in the production of milk in the state of Texas) and will be secured by a lien on the real estate.
- Loans granted will be on a closed-end note, meaning that all funds are disbursed at the time of closing.
- Members are limited to one loan in any 12 month period.
- No line-of-credits or balloon loans are available.