Your home's equity is the difference between its
market value and any outstanding mortgage indebtedness you may have.
We offer two ways to use that equity: one-time loans and lines of
credit. Both can be good ways to borrow money for major expenses,
such as renovating your home.
For one-time purchases for which a line of credit
wouldn't be appropriate, get a single loan disbursed in one lump
sum payment. Get a lower rate for a shorter term or lower payments
and a longer term (up to 20 years). You can borrow up to 80% of
Lines of Credit
A line of credit gives you a self-replenishing
cash reserve that can amount to as much as 80% of your home's equity.
Line of credit funds are accessible by CU Online home banking and
MacLine voice response, as well as by regular telephone requests.
Payments are based on a 20-year term.
Looking for a Tax Deduction?
Home equity loans have a limit of $175,000 for
fixed-rate and $150,000 for variable-rate. As with all our loans, there is no prepayment
penalty and interest is charged only on the declining balance. Unlike
other loans, the interest may be tax-deductible. A professional
tax advisor can tell you what the possible tax advantages would
be in your case.
Calculating Your Available Equity
Here's how to calculate how much you could borrow
with a loan or line of credit using 80% of your home's equity:
1. Multiply your home's current appraised market value
by 80% (.80).
2. Take the result and subtract your outstanding mortgage from it.
What you have left is your available home equity.
For example, let's say your home's current appraised market value is
$200,000 and your outstanding mortgage balance is $110,000. Eighty five
percent of $200,000 would be $170,000. Subtract $110,000 from that
and you have the amount you can borrow: $60,000.
A Word of Caution
When you get a home equity loan or line of credit,
you use the deed to your home as collateral. Be sure to exercise
caution in using the funds or you may find yourself in over your
head and at risk of losing your home. The consequences of defaulting
on a home equity loan are obviously worse than those for failing
to pay many other debts.
To apply for a Home Equity loan or line of credit,
please request our Home Equity Kit with application. You may call
202-547-4800 or email your request to the loan department at firstname.lastname@example.org.
See our current rates.
Use our Loan
Calculator to see how much your payments would be on a loan
or how much you can borrow at a certain payment amount.
Use our Loan
Comparison Calculator to compare interest rates and loan amounts.
You can have it increase the interest rate incrementally. The resulting
table will show you the loan payments for various interest rates
and loan amounts.
Use our Pre-qualification
Calculator to determine the maximum mortgage amount for which
you might qualify.
Account Terms, Disclosures