Home Equity Line of Credit
Turn your home equity into cash.
A Home Equity Line of Credit lets you access the value stored in your home so you can achieve all your goals with a single monthly payment.
Take Advantage of Our Home Equity Line of Credit Benefits:
Easy Access to Cash
Pay for home renovations, cover expenses, or consolidate debt.
Choose a draw period of 5 years then get more time for repayment.
Enjoy a lower APR than you get for a personal loan or credit card.
Legacy keeps costs down so more of your money goes where you need it.
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.
A HELOC is a convenient way to take care of significant life expenses like home improvements, weddings, vacations, and medical bills.
Legacy Credit Union Home Equity Line of Credit Rates
|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: 8.50%|
Rates are current as of 9/22/2023 and are subject to change without notice.
Our Home Equity Line of Credit Application
Process Is Fast and Simple
Use our secure online portal to provide your personal and financial details.
See If You Qualify
We’ll review your application. If approved, we’ll offer you a line of credit amount and rate.
Access Your Funds
Simply transfer funds from your HELOC account into your check or savings, or we can write you a check.
“Went into the branch today and all of the staff I encountered were friendly, polite and quick to take care of my needs. I thoroughly enjoyed my business transaction and would recommend them to my friends, family or anyone hunting for a bank or credit union.”
– Mary C., Birmingham, Alabama
FAQs About Home Equity Line of Credit
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.
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
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.
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!
More Home Loan and Home Equity Options
Choose from a fixed-rate or adjustable-rate mortgage (ARM) and find the right loan term to suit your goals.
Home Equity Loans
Enjoy a lump sum payment and a competitive, fixed rate. Budgeting is easy with equal monthly payments.
*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.