Home Equity Line of Credit (HELOC)

 

Home Equity Line of Credit Overview

  • Borrow up to 90% of the home's appraised value, less the first mortgage balance
  • Interest that may be tax-deductible*
  • Funds are disbursed as needed
  • Ten-Year draw period, followed by a ten-year repayment period
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HELOCs are commonly used for:

Home Improvement

Debt Consolidation

A Large or Unexpected Home Purchase

College Tuition

Payoff Student Loans

 

HELOC Application Process

1 Apply with our mortgage specialist - Answer a few questions and apply for a HELOC in minutes with a 30-minute meeting.

2 Understand your timeline - It typically takes 30 to 45 days to close on a new equity loan once we receive your application. Processing times may vary if an appraisal or additional documentation is needed.

3 Get Approved - Once your initial documents are signed and received, we'll begin the approval process, including four steps.
1. Initial Credit Approval
2. Home Valuation
3. Title Approval
4. Final Approval

4 Sign your loan document - You'll review and sign your loan documents with an attorney at a time and place convenient for you. Your loan will be funded shortly.

5 Use your funds whenever you want - You're set to start using the money from your Home Equity Line of Credit anytime during your draw period.

What do I bring to the initial HELOC appointment?

  • Last two years' tax returns
  • Four pay stubs for each applicant, award letters if on Social Security, or Retirement Statement

Get Started with a HELOC Specialist

Kyle Ingle

Kyle Ingle

Mortgage Loan Officer
NMLS#: 2604739
Office: 606-775-0265
Email: kingle@mccu.net

 
Heather Wallace

Heather Wallace

Mortgage Loan Officer
NMLS#: 2618122
Office: 606-775-0255
Email: hwallace@mccu.net

 
 

Understanding Home Equity Lines of Credit (HELOCs)

What is a HELOC?

A home equity line of credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity in their homes. Unlike a Home Equity Loan that offers a one-time lump sum, a HELOC operates more like a credit card, where you can draw from the available credit limit as needed.

With a HELOC, borrowers have the flexibility to access funds over a specified draw period, followed by a repayment period. During the draw period, borrowers can use the funds for various purposes, such as home improvements, debt consolidation, or other expenses.

Benefits of HELOC Loans:

  • Flexibility: Borrowers can access funds as needed, up to a predetermined credit limit, during the draw period.

  • Interest-Only Payments: During the draw period, you may only be required to make interest payments, offering lower initial monthly payments.

  • Revolving Credit: As you pay off the balance, you can borrow again, providing ongoing access to funds without reapplying.

 

Talk to a HELOC Specialist at MCCU Today

 
Kyle Ingle

Kyle Ingle

Mortgage Loan Officer
NMLS#: 2604739
Office: 606-775-0265
Email: kingle@mccu.net

 
Heather Wallace

Heather Wallace

Mortgage Loan Officer
NMLS#: 2618122
Office: 606-775-0255
Email: hwallace@mccu.net

 

*Consult with your tax advisor.
The variable Annual Percentage Rate (APR) will be equal to the index of Wall Street Journal Prime Plus 1.75%. The combined principal amount of all loans in which the debtor's home serves as collateral may not exceed 90% of the certified appraisal value of the home. There is a ten-year advance period with a ten-year repayment term from the date of the last advance. The monthly payment may vary, with a standard minimum payment of $100.00. The minimum draw amount is $500. The maximum APR is 10%. The minimum APR is 3%. The annual percentage rate may vary after the account is opened. Closing costs range from $750 to $1,500. Property insurance is required and not included in the closing costs. Rates, terms, and conditions are subject to change. All loans are subject to membership eligibility and credit approval. We do business in accordance with Federal fair housing laws, including the Equal Credit Opportunity Act. Call Members Choice CU for pre-qualification or more information (606) 329-7876.
**The Annual Percentage Rate is a variable rate. The annual percentage rate may vary after the account is opened. Property insurance is required and not included in the closing costs. Rates, terms and conditions are subject to change and vary based on credit worthiness, qualifications and collateral conditions