Home Equity Loans & Home Equity Line of Credit

What is a Home Equity Loan?

Home EquityHome equity loans are a type of loan that is backed by the value of your home. This makes home equity loans a great option to cover major expenses or to consolidate debt.

Right now, Auburn Community Federal Credit Union is offering members a 1% discount on personal loans and a 0.50% discount on auto loans when an auto loan or personal loan are taken out within 90 days of being approved for a home equity loan. This offer allows our members to take advantage of even greater opportunities to save on our low rates while getting the most from a home equity loan.

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What is the Difference Between A Home Equity Loan & A Home Equity Line of Credit?

While home equity loans and a home equity line of credit are similar, there are some important distinctions. Both home equity loans and a home equity line of credit are backed by the value of your home.

However, a home equity line of credit typically has a variable rate, while a home equity loan usually has a fixed interest rate. While a home equity loan is a loan, a home equity line of credit allows you to draw money from the value of your home as needed. While rates for a home equity line of credit can become lower if market rates lower, the opposite is true as well, as rates for a home equity line of credit can increase if market rates also go up.

What Are Home Equity Loans Used For?

Home equity loans are suitable for big purchases. Examples of expenses that people commonly use Auburn Community Federal Credit Union’s home equity loans for include, but are not necessarily limited to:

  • Making home improvements
  • Consolidating debt
  • Major life experiences, such as weddings or paying for college
  • Vacations

Paint Roller

What Are the Benefits of Home Equity Loans?

Low-Interest Rates on Home Equity Loans

Home equity loans often have lower interest rates than credit card APRs. Because home equity loans are backed by your home’s value, Auburn Community Federal Credit Union has the ability to offer low-interest rate home equity loans with higher limits on loans, empowering you to get more from our home equity loans.

View Home Equity Loan Rates

Home Equity Loans Could Be Tax Deductible

As well as low-interest rates on home equity loans, Auburn Community Federal Credit Union could save you even more money with a home equity loan that could be tax deductible. When considering your loan options, a low-interest rate shouldn’t be the only thing you look for. The interest paid on home equity loans could be tax deductible, helping you to save even more. Please consult with your tax advisor regarding potential tax deductions.

Make Paying Your Bills Easier With Home Equity Loans

With home equity loans, you could consolidate your debt. What does that mean for you? Rather than having to make multiple payments on all of your credit cards or other outstanding loans, you may be able to simplify paying your bills by just having to make payments toward your home equity loan. By consolidating your debt with a home equity loan, you can start to pay off your credit cards or other loans all in one loan.

Ready to take advantage of the benefits of a home equity loan from Auburn Community Federal Credit Union? Contact us today.

Am I Eligible For A Home Equity Loan from Auburn Community Federal Credit Union?

Members of the Auburn Community Federal Credit Union who meet lending guidelines are eligible to obtain our home equity loans.

Additionally, the home that you’re borrowing the value from for your home equity loan must be owner-occupied and your primary residence. This means that you cannot take a home equity loan that’s backed by your vacation home or mobile home.

Features of Our Home Equity Loans

The minimum amount that can be borrowed for a home equity loan is $5,000. Home equity loan accounts can be single or joint, allowing you to pay off your loan in a way that matches your lifestyle. Homeowners on their first or second mortgage may take out a home equity loan, and the loan can be for up to 80% of the value of the home.

How Long Do I Have to Repay My Home Equity Loan?

Auburn Community Federal Credit Union offers home equity loans with repayment terms of up to 15 years.

Can The Interest Go Up On My Home Equity Loan?

No. All home equity loans from Auburn Community Federal Credit Union come with a fixed interest rate. That means your interest rate won’t go up for the life of your home equity loan. Our home equity loans are also provided with a low annual percentage rate, helping you to save money as you make loan payments.

Tap In To The Value Of Your Home With A Home Equity Loan

To talk to our loan specialists about if a home equity loan is right for you, or if you’re ready to get started on applying for a home equity loan, contact us today.

Is A Home Equity Line of Credit Right For You?

If you’re not sure exactly how much money you’re looking to borrow, consider a home equity line of credit.

With a home equity line of credit, you can borrow money from the value of your home when you need it. Because of this, a home equity line of credit can provide you with more financial flexibility, allowing you to pay for unexpected expenses at the time that you need it.

Am I Eligible for a Home Equity Line Of Credit from Auburn Community FCU?

To be eligible to obtain a home equity line of credit, borrowers must be an Auburn Community FCU member in good standing and meet lending guidelines. The home that you would like to open a home equity line of credit on needs to be owner-occupied and your primary residence. This means that you cannot take a home equity line of credit from your vacation home or mobile home.

Do you meet the eligibility requirements for a home equity line of credit? Contact us to get started.

Features of A Home Equity Line Of Credit From Auburn Community FCU

The minimum amount that can be borrowed for a home equity line of credit is $15,000. The first advance on a home equity line of credit must be a minimum of $15,000, with subsequent minimum loan advances of $500. These loan advances can be made by phone or in person.

Paying for your home equity line of credit is made easy with accounts that can be single or joint. Homeowners on their first or second mortgage may take out a home equity line of credit, and a home equity line of credit can be for up to 80% of the value of the home.

How Long Do I Have to Repay My Home Equity Loan?

Auburn Community Federal Credit Union offers a home equity line of credit with repayment terms of up to 15 years. The first 5 years of your home equity line of credit acts as a revolving line of credit.

You Could Get A Tax Deduction When Paying Interest on a Home Equity Line of Credit

The interest paid on a home equity line of credit could be tax deductible, helping you to save even more. Please consult with your tax advisor regarding potential tax deductions.

View Home Equity Line of Credit Rates

Be Prepared & Get More From Your Home With A Home Equity Line of Credit

Is a home equity line of credit right for you? To find out by talking with our loan specialists, or to apply for a home equity line of credit, contact us today.

*Closing costs are subject to recapture if the loan is closed within 36 months of origination.