Home Equity Line Of Credit

Details About Our Home Equity Line of Credit in Alabama

If you’ve paid down your mortgage while your home has gained value, you most likely have a nice amount of equity just waiting to be unlocked.

- To get started, you need to have about 20% equity in your home.
- You can borrow against your home equity to get a ready source of cash.
- Use the funds during a draw period of 5 years.
- Get an extended repayment period of up to 15 years to pay the funds back in full.
- You need to make an initial draw of $100. After your initial draw, you can withdraw any amount you like for any purpose.
- It’s a good idea to use separate draws for separate purposes and keep records.
-You only pay interest on the funds you use so a zero balance means you don’t pay any interest.
- The interest may be tax deductible when you use the funds for home improvements.

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Legacy Credit Union Home Equity Line of Credit Rates

term

Credit Score

***apr

Home Equity Line of Credit*

720+

Prime Rate

719 – 680

Prime Rate + 1.00%

679 – 640

Prime Rate + 1.50%

**Rates Based on 80% LTV**

PRIME RATE: 7.50%

*The interest rate, annual percentage rate (APR), origination fees, discount points and closing costs are subject to change without notice. **Your APR will vary based on your final loan amount, credit history, loan to value, margin, and finance charges.***5/1 Adjustable Rate (ARM). Up to 95% LTV. No Origination Fee. PMI on LTVs greater than 80%. Requires 720 minimum credit score and debt to income not to exceed 43%. Rates are subject to change without notice.****Quote is a score of 720 and Loan Amount of $150,000 at 80% LTV

FAQs About Home Equity Line of Credit

Is a Home Equity Line of Credit a secured or unsecured loan?

Answer: When you get a Home Equity Line of Credit, your home serves as collateral so it is a secured loan. Secured loans (like a home loan or auto loan) can offer lower rates than unsecured credit cards and unsecured personal loans.

You can reach out to a member of our team to make sure you can comfortably afford your HELOC and stay on top of your payments. Then you can get started on that to-do list!

What's the difference between a HELOC and a Home Equity Loan?

Answer: Both a HELOC and Home Equity Loan let you borrow against the value that is stored in your home because you have paid down your mortgage and/or your home has gained market value.

Here’s how these popular home equity products are different:

A HELOC gives you a line of credit like a credit card, and you can use as much or as little of the funds as you like, so your payment amounts may be different each month.

A Home Equity Loan gives you a lump sum payment and you make equal monthly payments, often with a fixed interest rate, so you always know what you owe.
A HELOC is ideal for ongoing projects and expenses while a Home Equity Loan may suit you if you have one major expense to pay at once.

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What can I use my Home Equity Line of Credit for?

Answer: You can use your home equity line of credit for a wide range of purposes, including:

Home renovations, improvements, and remodeling
Upgrading or repairing your appliances

Purchase or repair of a vehicle

Weddings, vacations, and other life celebrations

Vacations and weekend getaways

Medical and dental bills

Consolidation of high-interest credit cards and loans

An emergency or rainy day fund to use only when needed

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How do I know if I have home equity?

Answer: You’ll need about 20% home equity to qualify for a Home Equity Line of Credit (HELOC). Here’s an easy way to estimate how much equity you have in your home:

Find out the current market value of your home.
Subtract your current mortgage balance.

The amount you have left is the dollar value of your home equity.

For example: $300,000 home value – $225,000 mortgage balance = $75,000 home equity.

To turn that figure into a percentage, divide your home equity by the market value of your home.

For example: $75,000 / $300,000 = 25% equity.

To protect you against shifts in the housing market, you can’t usually borrow the full amount of your current home equity.

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More Home Loan and Financing Options

Mortgage Loans

Choose from a fixed-rate or adjustable-rate mortgage (ARM) and find the right loan term to suit your goals.

Learn More

Home Equity Loans

Enjoy a lump sum payment and a competitive, fixed rate. Budgeting is easy with equal monthly payments.

Learn More

Home Loan Refinancing

Find out if you qualify for a lower rate or change your term so you get a better payment for your financial situation.

Learn More

*Your APR will vary based on your final loan amount, credit history, loan to value, margin, and finance charges.‍**The interest rate, annual percentage rate (APR), origination fees, discount points and closing costs are subject to change without notice.