HOME EQUITY LOANS
Turn Your Big Dreams Into Reality
Whether you are looking to remodel your home, paying for your kid’s college tuition, looking to consolidate your credit card debt, or planning a dream vacation, with a Home Equity Loan, you have options. Here are some key features from our home equity loans:
- Rates as low as 6.49% APR* & terms to 20 years
- Financing up to 80% of your home’s value less any outstanding loans
- Interest is usually tax deductible, just ask your tax advisor
- Easy online application
Rates
Rates
Home Equity Loan Rates
| Starting Interest Rate* - 1st Lien | Term | Payment Example Per $1,000 Borrowed |
|---|---|---|
| 6.49% | Up to 60 months | $19.56 |
| 6.99% | Up to 120 months | $11.61 |
| 7.24% | Up to 180 months | $9.12 |
| 7.49% | Up to 240 months | $8.05 |
| *APR = Annual Percentage Rate. Actual rates may vary based upon credit qualifications and are subject to change without prior notification. For 2nd Lien, add 1.00% to rate. | ||
Requirements
Requirements
- Home Equity loans are a $15,000 minimum
- Property must be homestead
- A borrower may obtain only one equity loan at a time
- An equity loan may not be financed more frequently than once a year
- There is no pre-payment penalty
- Loan closings must occur in the office of the lender, title company or Attorney
- Closing documents MAY NOT be executed before the 12th day after the lender received an executed credit application and Notice concerning extensions of credit
- There is a 3-day Right of Recession period after the loan documents are signed before loan proceeds will be distributed (Sundays and legal holidays excluded)
- All loans may be subject to an appraisal
- Flood determination required
Required Documents
Required Documents
Before you start your loan pre-qualification process, you will need the following documentation for your loan officer to review.
General Documentation:
- 30 days worth of paystubs dated within 30 days of your application date (*GCEFCU cannot use direct deposit information for mortgage applications)
- 2 years worth of W2s, 1099s, etc.
- 2 years worth of tax returns (if self-employed, collecting rental income, or required by loan officer)
- Documents reflecting retirement income or benefits being collected (award letters, 1099s, statements, etc.)
- 2 months worth of bank statements from the account(s) you are seeking use for closing cost/down payment
- 2 forms of valid government identifications
Home Equity Loans:
- Most recent mortgage statement (if applicable)
- Deed of Trust(s) on your home(s) (if applicable)
- Current homeowners, windstorm, and/or flood insurance policies for each property owned
Miscellaneous:
- If you own more than one property, please provide the mortgage statement, insurance policies, and/or rental agreements (if applicable)
- If you have student loans in deferment please provide documentation on the terms or your student loan(s).
Miscellaneous Forms
Once you have started your home equity loan process, you may be required to submit additional forms. The most commonly requested forms are listed below:
Frequently Asked Questions
Would a home equity loan benefit you?
The first step is to figure out how much you can borrow. If your estimated amount to borrow is less than $15,000, you would not qualify for this type of loan.
Another consideration would be to consult with a tax professional to find out if you can deduct the interest and charges from your taxes. If not, a Home Equity Loan would be of little value to you unless the rate was incredibly low.
One of the most important points to consider is that you are using your home as collateral on a contractual obligation. You are less likely to lose your home with a Home Equity Loan than with other types of home-secured loans such as a mortgage, but the reality remains that you could lose your home if you fail to make payments or violate other terms on your loan.
Frequently Asked Questions
Q: How long does the home equity loan process take?
A: The process takes about 3 – 5 weeks once we have a completed signed application.
Q: How long can I do the loan for?
A: We offer 5, 10, 15, & 20 year terms for any loan amount.
Q: How much can I borrow?
A: The minimum is $15,000 and the maximum is 80% of the home’s appraised value, minus what you currently owe on it.
Q: Will I need an appraisal and how much is it?
A: This is determined by how much you are borrowing and the value of your home. The appraisal fee is $525 paid upfront & non-refundable (cannot be taken out of loan proceeds).
Q: I’ve taken cash out of my home before, can I still do a home equity loan?
A: Yes, if it has been at least 12 months. You will be required to pay off the cash out loan with the new home equity.
Q: Do you offer HELOC loans?
A: No, we do not offer HELOCs at this time.
Q: Can I use my rental property for a home equity loan?
A: No, we only do home equity loans on your primary residence. You must live in the home you want to use as collateral. The county must also reflect a residential homestead to be approved.
Q: My Payroll is deposited directly into my GCEFCU account, do you still need my paystubs?
A: Yes. When we calculate income, we use the gross income amount, which is the higher income amount shown on your pay stub (gross income = before any deductions). Your direct deposit only shows the net amount (net income = after deductions). Therefore, your net income gives you less income to qualify.
Q: Can my payments be set up twice a month?
A: No, all of our real estate loan payments are set up to be paid monthly on the 1st of every month.
Q: Can I refinance the home equity I currently have for a lower rate?
A: We require that you add a minimum of $15,000 to your loan to refinance to qualify for no closing costs.
Disclosures
*APR = Annual Percentage Rate. All rates are subject to change without notice. Taxes and insurance are not included, your actual rate and payments may be higher based on your credit score and the terms of your loan. No other promotional discounts may be applied. Additional requirements may apply. A home equity loan of $50,000 for 5 years at 6.49% APR will have a monthly payment of $978.07.
As a reminder, do not send confidential information, such as member number, social security number, etc. in an e-mail message.