Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) is a form of revolving credit in which your home serves as collateral. Because the home is likely to be a borrower’s largest asset, many homeowners use their credit lines only for major items such as education, home improvements, or for an emergency, and not for day-to-day expenses. Unlike credit cards, interest paid may be tax-deductible. Consult your tax accountant.

Why not use the equity that you’ve built up in your home to establish a secured line of credit that you may draw on, up to your credit limit. You can use the funds for any purpose and the interest is tax deductible for most people. We recommend, of course, that you consult your tax advisor for specific tax advice.

 

All rates are subject to change without notice.

The rate is based on PRIME, a variable interest rate.  HELOC rates are adjusted monthly based on the PRIME rate published in the Wall Street Journal as of the last day of the month.  The rate will never exceed 18% APR (APR = Annual Percentage Rate).

Closing costs are paid by the credit union, contingent on the line of credit remaining open for at least 2 years.

Rate: Determined by a home’s Loan-To-Value (LTV) ratio.  LTV = 1st mortgage balance + proposed HELOC limit divided by the market value of the home.

Current Rate

Loan to Value of 80% or less
Rate at Prime – WLS last day of each month for life of loan

20 yr. max. term. PRIME rate( 10yr. draw period/ 10yr. Payback)
Monthly Payment = 1% Outstanding Balance during draw period. After 10 year draw period-10 year term on Outstanding Balance

Current Rate is 3.25% APR (Annual Percentage Rate)

*APR = Annual Percentage Rate

This rate is subject to change periodically

Term & Monthly Payment: The loan term is 20 years. Borrowers have the first 10 years to draw funds from the HELOC. During the first 10 years, the minimum monthly payment is 1% of the outstanding balance as of the cycle date, or $50, whichever is greater. Payments are due by the 25th day of each month.

At the end of the 10 year “draw period”, no further draw shall be made to borrowers. However, borrowers may be allowed to renew the line of credit. Borrowers agree to pay monthly, all interest accrued through the last day of the prior month plus 1/120th of the principal balance outstanding on said anniversary, or $100, whichever is higher.

Acceptable Type of Property: Condominiums & 1-4 Family Homes (Owner Occupied). 6-D certificate required for all condominiums (certification by condo trustees stating all association fees are current).

Size of Loan: $10,000 – $125,000.

Contact the loan department to start your application.

DOCUMENTS NEEDED FROM YOU:

Please fax (617) 227-0252 or mail the following documents to the Loan Department:

1) Completed and signed application by all applicants.

2) Copy of your latest recorded mortgage deed or original Owner’s Duplicate Certificate of Title.

3) Copy of current Real Estate Tax Bill.

4) Copy of most recent pay stub(s). If self-employed or using rental or other non-employment income, please submit copies of last 2 years signed Federal income tax returns.