Unlock the Equity in Your Home
When you open a Home Equity Line of Credit (HELOC), you can borrow up to 80% of the appraised value of your home (less the remaining principal owed). A HELOC with America’s Christian Credit Union (ACCU) offers you the flexibility to draw funds as you see fit, because you can access your line of credit anytime during the initial 10 years. Use the funds to cover the cost of college tuition, debt consolidation, large appliance replacement or installation, unexpected expenses, and more! And only pay interest on what you use, even if you are approved for more.
- Home improvements
- HVAC and heating units
- Debt consolidation
- College tuition
- And more!
Home Equity Line of Credit Details:
- Variable rate as low as 8.50% APR2
- 0.25% discount with automatic payments2
- Borrow amount up to 80% appraised value (less the remaining principal owed; 70% combined loan to value for investment properties)
- Fully amortized loan: avoid payment shock during repayment term
- Generous loan limits up to $400,000
- Only pay interest on what is used
- Interest may be tax deductible3
- Convenient access to funds
- Not available in Texas
With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit. During the draw period, you can borrow as little or as much as you need up to the credit limit you establish at closing. As you repay your outstanding balance, the amount of available credit is replenished – similar to a credit card. At the end of the draw period, the repayment period begins. Refer to FAQ below for more information on HELOCs.
What is home equity?
Home equity is the difference between how much you owe on your mortgage and how much your home is worth.
How do I calculate my home’s equity?
To calculate your home’s equity, subtract your current loan principal from the home’s market value. While this can give you a rough estimate of your home’s equity, the true equity will be calculated after an appraisal is performed.
How do I determine my home’s market value?
If you don’t have a recent appraisal, you can estimate your home’s market value by researching recent sale prices of similar homes in your neighborhood. A local real estate agent can assist you with this process. You can also get a general idea of your home’s value by reviewing your tax statements for the assessed value of your home. A current home valuation, including clear pictures of the outside of your home, is required to determine how much equity you can borrow. When you apply for an equity loan/line of credit, your Processor will determine the type of home valuation or appraisal needed based on the details of your loan and can schedule it for you.
How long does it take to get a home equity line of credit?
It typically takes 30-45 days to close on a new home equity line of credit once we receive your application. If an appraisal or additional documentation is needed, processing times may vary based on state and availability.4
How much can I borrow?
You can borrow as little as $20,000 or up to $400,000, depending on your credit history, available equity in the property and your current monthly debt.
Is a HELOC available in my state?
ACCU’s HELOC product is available in all U.S. states except for the state of Texas.
How soon will I get my money once the home equity line of credit closes?
If the property used to secure your equity loan or line of credit is your primary residence, there’s a three-business-day waiting period after closing (you can change your mind and cancel your loan during this time). Your funds or line of credit will be available after the three-day period ends. The three-day waiting period doesn’t apply for investment properties and second homes.
How long is the draw period and amortization?
A Home Equity Line of Credit (HELOC) has 2 different periods: a draw period and amortization period. The draw period is 10 years, followed by a 20-year repayment period. Payments during the draw period and repayment period are fully amortized for a maximum term of 30 years.
Do I qualify for any rate discounts?
If you’re applying for a new home equity line of credit, you can receive a 0.25% interest rate discount when you sign up for automatic payments from your America’s Christian Credit Union checking account.
Is the interest rate fixed or variable?
This home equity line of credit (HELOC) is a variable rate plan as described in the applicable loan documents.
How often can the Annual Percentage Rate (APR) change on a HELOC?
The APR on a HELOC can change quarterly. It’s a variable rate that may increase or decrease based on changes in the prime rate. The prime rate is updated according to the published rate in the Wall Street Journal.
Are there tax benefits with a home equity line of credit?
The interest paid on a home equity line of credit may be tax deductible. Consult with your tax advisor for more information.
1 – Other costs may be associated with this loan. ACCU will cover closing costs up to $500. May not be combined with any other offer or promotion.
2 – APR = Annual Percentage Rate. This HELOC (Home Equity Line of Credit) is a variable rate plan as described in the applicable loan documents. Not all applicants will qualify, and not all applicants will qualify for the lowest rate. APR may vary based on the index rate plus a margin. Index rate is based on the Prime Rate as published in the Wall Street Journal. The current index is 8.25%. APR will not exceed 14.75%. Advertised “as low as” APR assumes excellent credit history, loan-to-value, and maximum rate discount of 0.25% for ACH/automatic payment. Qualification and APR dependent on credit history, debt to income, loan-to-value, ability to repay, homeownership, and other factors. Maximum loan-to-value ratio is 80% for owner-occupied and 70% for non-owner occupied, based on appraisal value. Available to owner and non-owner occupied, single-family dwellings. Minimum line of credit is $20,000. Minimum initial draw is $5,000. Minimum subsequent advance is $1,000. Adequate property and flood insurance are required, if applicable. Dependent on state regulations: Credit Union will pay all initial closing costs as outlined in the Waived Fee Addendum. The Credit Union will pay up to $375 for the Home Appraisal; the homeowner is responsible for the remaining balance. If the HELOC is paid off and closed within 36 months of the original note date, the fees will be added to your Account Balance and the entire amount (including any Beneficiary’s Demand) must be paid prior to the issuance of a reconveyance or lien release. Closing costs (title fees, appraisal fees, survey fees, miscellaneous municipality fees, etc.) range from $750-$1500. Rates, terms, and conditions are subject to change or discontinue at any time, without notice. For a $50,000 Home Equity Line of Credit, Quarterly Adjustable, with 65% Loan to Value at 8.50% APR, the monthly payment will be approximately $385.94. There is a discount of 0.25% applied to automatic payments through an ACCU checking account or external account for the life of the loan. If automatic payments are stopped, the discount will not apply. Discount will apply after the introductory period. HELOC product is not available in Texas.
3 – Consult with your tax advisor.
4 – Provided as an estimate only, not a guarantee. Actual time from application to funding is dependent on a number of factors including the local regulations, local restrictions, and availability of service vendors such as appraisal and title. An updated completion time-frame is provided as steps progress during the HELOC process.