Home Equity Loans
Put the equity in your home to work however you want.
A low-interest Home Equity Loan gives you a lump sum of cash to pay for renovations and other significant expenses.
Home Equity Loans Offer These Benefits:
Easy Fixed
Payments
Get a lump sum of cash then repay it in equal installments.
Competitive
Fixed Rates
Lock in a great APR and relax knowing it won’t change.
Terms to Suit
Your Budget
Choose a loan term of 5, 7, or 10 years to suit your lifestyle and goals.
Lower Fees
Save You Money
Legacy keeps costs down so more of your payment goes on your principal.
What You Need to Know About Our Home Equity Loan
Once you’ve gained home equity, you can leave it sitting there until you sell or you can leverage it now to pay for improvements and meet other expenses.
- You’ll need about 20% equity in your home to qualify for a home equity loan.
- You borrow against your home equity to get a lump sum of cash.
- You repay the funds in equal parts over a loan term of 5, 7, or 10 years.
- The loan comes with a fixed APR so you’ll always know the payment amount.
- You can use the funds for just about any purpose.
- The interest may be tax deductible when you use the funds for home improvements.
A home equity loan is a simple and affordable way to achieve your goals and add value to your home.
Legacy Credit Union Home Equity Loan Rates
| Term | **Rate | ***APR |
| 5 Year | As low as 6.900% | 7.172% |
| 7 Year | As low as 7.250% | 7.451% |
| 10 Year | As low as 7.900% | 8.049% |
See Our Simple Application Process for an
Alabama Home Equity Loan
Apply Online
Provide your personal and financial details via our secure online portal and we’ll get back to you soon.
Quick Review
We’ll check if you qualify. If approved, we’ll offer you a loan amount and rate for your preferred term.
Get Your Payment
We’ll deposit your loan funds into your Legacy checking or savings account.
★★★★★
“Legacy Federal Credit Union is the best Bank! I love Legacy and the Staff that tends to your business and respects your concerns. Legacy is the way you should go to be comfortable about your money, Legacy is the Bank to be.”
– Vanessa G., Birmingham, Alabama
FAQs About Home Equity Loans
Answer: You’ll need about 20% home equity to qualify for a Home Equity Loan, so here’s a simple way to see how much equity you might 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.
Answer: You can use your Home Equity Loan 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
Answer: Both a Home Equity Loan and a HELOC 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 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 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 may suit you if you have one major expense to pay at once, while a HELOC is ideal for ongoing projects and expenses.
Answer: When you get a Home Equity Loan, your home serves as collateral so it is a secured loan. Home Equity Loans are sometimes called a second mortgage because you borrow against your home like your first mortgage.
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 Home Equity Loan and stay on top of your payments. Then you can get started on that to-do list!
Contact Legacy Today:
More Home Loan and Home Equity Options
Mortgage Loans
Choose from a fixed-rate or adjustable-rate mortgage (ARM) and find the right loan term to suit your goals.
Home Equity Line of Credit (HELOC)
Get a ready source of funds and only pay interest on the portion you use. Cover all your costs!
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.
*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.