What is a home equity loan?

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Home Equity Loans

A home equity loan allows you to borrow money, using your home's equity as collateral. Collateral is defined as a property that you pledge as a guarantee that you will repay a debt. Equity is the difference between how much the home is worth and how much you owe on the mortgage.

Why should I get a Home Equity Loan?
A home equity loan might be best if you plan to use the money for a one-time occasion such as a home repair, purchasing a car, paying for your daughter’s wedding, or consolidating debt. Why? Because home equity loans are disbursed in one lump sum.

Also, the interest rate on our Smart Choice Home Equity Loan is fixed and so are the monthly payments. You pay principal and interest every month for the life of the loan. To see current rates, click here.

 

Why should I get a Home Equity Line-of-Credit?
If you plan to use the money periodically and not all at once, you may want to obtain a home equity line-of-credit. For example, if you’re doing a remodeling project and the contractor will be paid in several installments or you’ll be making tuition payments at the beginning of each semester. A home equity line-of-credit is a credit line much like a credit card, giving you the flexibility to borrow what you need when you need it.

The interest rate with a home equity line-of-credit (HELOC) is variable and will change over time. To see current HELOC rates, click here.

FedChoice offers the Smart Choice Home Equity Loan and two Home Equity Line-of-Credit choices:

  • Home Equity Line-of-Credit - Classic
  • Home Equity Line-of-Credit - Gold

 

The Consumer Financial Protection Bureau has published an informative brochure to help you understand the differences between home equity loans and home equity lines-of-credit so that you may determine which product will best suit your needs. Click here.

HOME MORTGAGE DISCLOSURE ACT NOTICE

The Home Mortgage Disclosure Act (HMDA) requires that we make data available for review that we are required to collect about our residential mortgage lending. The data includes geographic distribution of loans and applications; pricing, ethnicity, race, sex, and income of applicants and borrowers; and information about loan approvals and denials. Inquire at this office regarding the locations where HMDA data may be reviewed. To receive a copy of this data, please send a written request to FedChoice Federal Credit Union, 10001 Willowdale Road, Lanham, MD 20706, Attention: Lending Services Director.

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*Applying for a loan as a nonmember also submits a membership application. You must be a member of FedChoice to receive a loan from us. Review membership criteria here.

Real Estate Days

Meet with a member of our Real Estate Department and one of our Real Estate Agent Partners to learn more about the HomeAdvantage® Program for Buying/Selling a Home and to ask any questions about our mortgage and home equity loan options.*

Select a date and time that best fits your schedule:

  • Thursday, May 11th  
  • Thursday, June 15th
  • Thursday, July 13th 
  • Thursday, August 17th
  • Thursday, September 14th
  • Thursday, October 12th 

*HomeAdvantage is available to you through your membership with FedChoice Federal Credit Union. Cash Rewards are available to members who register to use HomeAdvantage and who use a real estate agent in the HomeAdvantage network to buy or sell their home. Using FedChoice for a mortgage is not a requirement to earn Cash Rewards. Cash Rewards amounts are dependent on the commissions paid to the agent. FedChoice may have specific rules on how your Cash Rewards will be paid out. Cash Rewards are void where prohibited by law or the lender. Please consult with your credit union to get details that may affect you. FedChoice NMLS # 399841 provides mortgage loans by partnership with myCUmortgage, LLC. NMLS # 565434 and by partnership with Credit Union Mortgage Association(CUMA) for properties located in AK, HI, and NY. NMLS# 296727. Mortgage: All loans subject to credit approval. This credit union is federally insured by the National Credit Union Administration.

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*Applying for a loan as a nonmember also submits a membership application. You must be a member of FedChoice to receive a loan from us. Review membership criteria here.

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