Home Equity Loans
What's a Home Equity Loan?
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.
What’s a Home Equity Line-of-Credit?
A home equity line-of-credit 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 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
And, right now, we are offering closing cost assistance! FedChoice will pay up to $500 of your closing costs as long as your line is open for 3 years.^
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.
^Closing cost assistance when your payment is automatically deducted from your FedChoice Federal Credit Union account and your loan is open for three years. If the loan is closed before three years, the member will be required to reimburse FedChoice for all costs paid on their behalf. The cost of required property insurance, however, must be covered by the member. Otherwise, on average, closing costs typically range from $600 - $800 but may vary depending upon the amount of the loan, terms, property value, etc. FedChoice will cover up to $500 in closing costs (not including property insurance).