Home Equity Loans 

Looking to do some Home remodeling? Bill consolidation? If so, a home equity loan may be a good option. The rates are typically lower than other types of consumer loans, and the best part is, when you borrow against the equity in your home the interest you pay may be tax deductible. (Consult your tax advisor.) We offer two types of Home Equity Loans for - a Fixed Rate Home Equity Installment Loan and a Variable Rate Home Equity Line of Credit.

Variable Rate Home Equity Line of Credit

The Variable Rate Line of Credit Loan is available at 90% Loan to Value (LTV**). You simply write a check - up to your available limit - anytime without the hassles of reapplying each time you need additional money. As you pay off the balance more becomes available for you to use again. Credit lines start at $10,000.00 and go up to $300,000.00 with convenient draw and repayment terms. 

Rates start at Prime APR***

Home Equity Refinancing

We will also refinance your Home Equity Loan from another financial institution. Bringing your interest rate down even just one percentage point can mean significant savings. 

Example:

$75,000.00 Loan
7.00% APR* - Monthly payment $870.70 = Interest over 10 years $29,482.74
6.00% APR* - Monthly payment $832.56 = Interest over 10 years $24,904.26
Savings over term of loan $4,578.48

To apply, please email the Lending Center at loans@abcofcu.org or call 609-877-1911, option #3.

ABCO FCU NMLS# 541573

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*APR=Annual Percentage Rate. Subject to credit approval. This is the lowest available rate on a 5-year fixed home equity loan with a loan-to-value ratio of 90%. Rates will vary based on creditworthiness, the loan-to-value ratio on your owner occupied primary home, and the term. Home equity loans available for primary residences only and there is a minimum of $10,000. ABCO refinance required to add a minimum of $10,000 new cash. The maximum LTV is 90% and the maximum term is 15 years. Rates and terms subject to change at any time without notice. Title insurance and/or a full appraisal at the borrower’s expense will be required in some situations.

**To calculate your LTV, divide the mortgage loan amount by the fair market value of the home. For example, a mortgage loan of $150,000 on a home that is appraised at $200,000 has an LTV of 75%. To estimate how much equity you will be eligible for, calculate the appraised value of the home x .90% and subtract the outstanding mortgage balances (first and/or second mortgages). For example, $200,000 x .90% = $180,000 minus outstanding balances ($155,000) = $25,000.

***APR=Annual Percentage Rate. The Prime Rate is a variable rate published daily by the Wall Street Journal. HELOCs have a 20-year term with a 5-year draw period and 15 year- repayment. The maximum APR is 17%. There are no closing costs, however third-party fees may apply depending on your individual situation. Contact us for details. Property insurance is required, including flood insurance where applicable. Potential line of credit must be a minimum of $10,000 new cash; minimum monthly payment amount for credit line balance is $100 . Consult a tax advisor for deductibility of interest.