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| Home Equity |
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Payment Calculator with Insurance Option GMCU Home Equity Loan
 GMCU also offers an attractive Home Equity Line of Credit. Use the equity you've built up in your home to consolidate debt, remodel your home, pay for college, or buy a new car. It's low-cost. It's tax-deductible*. It can save you money. Ask us for more details. (*Consult your tax professional.)
FAQ's
Q. What is a Home Equity Loan?
A Home Equity Loan uses a portion of the value of your primary residence, above what you owe on your existing mortgage, as security for a loan.
Q. How do I calculate the amount I have available for a home equity loan?
To determine the amount available for a home equity loan, take your home's appraised value or tax assessment and multiply by 80% (the loan to value ratio), minus any outstanding liens, that equals the potential loan amount.
For example, let's say you've had a mortgage on your home of $100,000 for 10 years and have paid down the principal to $60,000. In the 10 years you have owned your home, property values in your area have increased and now your home is worth $125,000. In this particular example, you would be able to borrow up to $40,000 using your home as security for the loan.
Don't understand how? Let's take a look:
Appraised value of home: $125,000
Multiply by 80% (loan to value ratio):
$125,000 * .80 = $100,000
Less the remainder of the 1st mortgage: - $ 60,000
Equals: $ 40,000 available equity
Q. What is the maximum loan to value ratio?
The maximum loan to value ratio is 80%. (Higher LTV's are available upon request and qualifications.)
Q. How long does it take to process a home equity loan?
It normally takes approximately 2 to 3 weeks, depending on several things, for example, if an appraisal is necessary.
Do I have to pay any fees to get a home equity loan?
There are no up front fees. Closing the account within 12 months triggers the reimbursement of all closing fees. Abstracting and appraisal fees are extra if needed. GMCU Membership eligibility and fees apply.
Q. Are there any annual fees associated with any of the home equity loans?
No, we do not have any annual fees.
Q. Does the credit union service their home equity loans?
Yes, we do service our home equity loans and they remain in-house for the life of the loan.
Q. How is the interest rate determined on a Home Equity Line of Credit loan?
GMCU offers a great low rate on a HELOC, but the rate varies based on the applicant's credit history and loan-to-value history. Rates are fixed for 12 months and may be adjusted annually up to 2% per year based on market conditions. The maximum increase is 6% over the life of the loan. Compare GMCU's maximum interest rate to those of other financial institutions and you'll discover the value offered in our Home Equity Loan product.
Q. What is the maximum term on your Home Equity Line of Credit loans?
The maximum term is 180 months, (15 years).
Q. How long can I use my Home Equity Line of Credit?
Home Equity Lines are set up for a 15-year term. You can take advances on the line of credit for the first 10 years. The last 5 years of the term is reserved strictly for repayment. |
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