Our Home Equity Line of Credit offers you financial flexibility with rates as low as 5.000%1
Owning your own home is a major financial milestone. But did you know your home can also provide you with access to additional funds through a home equity line of credit? Savvy homeowners use this financial tool to:
- Remodel their home and increase its value
- Consolidate higher-interest debt
- Help pay for tuition
- Seize investment opportunities
- Prepare for unexpected large expenses
How it works.
When you open a Home Equity Line of Credit, simply write a check to access this low cost borrowing option. You pay interest only on what you use. You can pay it down anytime with no penalty and still have your revolving credit line available for future fuse. If you don’t use it now, pay nothing and have it in place for a rainy day. Take advantage of these benefits:
• Rates as low as 4.750% APR
• No closing costs up to $250,000²
• No annual fee
1. APR = Annual Percentage Rate. Rates and terms shown are accurate as of 2/19/2020, and apply to a Home Equity Line of Credit or to a Home Equity Loan for the most qualified applicant at the CLTV shown. Rates vary for second or vacation homes. Home Equity Lines of Credit and Home Equity Loans are only available in California on owner occupied and vacation or second homes.
The minimum periodic payment for line of credit is interest-only for the first ten years ('draw period') followed by fully-amortizing payments to repay the balance over the final fifteen years. No draws will be allowed during the repayment period. Payments and rate can adjust monthly. Payments will increase if rates increase. At the end of the draw period, your required monthly payments will increase because you will be paying both principal and interest.
Line of credit rate is calculated using an index plus a margin. The index used is the Prime Rate as published in the Wall Street Journal Western Edition on the last business day of the month prior to the change. The current prime index is 5.000. In no event can your rate increase above 17% APR.
2.The minimum credit line amount is $10,000 and the maximum is $500,000. Patelco Credit Union will pay customary closing costs on lines up to $250,000 in second lien position. Borrower is responsible for closing costs on lines in first lien position or over $250,000 and any escrow fees resulting from changes to title. Closing costs range from $0 to $2,500. Borrower may be required to pay a notary fee varying from $1 to $40 to execute the loan documents. Read the HELOC Program Disclosure.
Rates, terms, conditions, and availability are subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as an offer or commitment to lend. Loans are subject to credit and property approval. Other conditions and restrictions may apply. Hazard insurance may be required. NMLS ID Number is 506373.