Home Equity | Advancial Federal Credit Union

	Home Equity Loan	Home Equity Line of Credit (HELOC)
Product	Fixed-rate, closed-end loan with equal payments over the term of the loan	Open-end variable rate loan, interest-only payments in 5 year draw period followed by a 10 year repayment period to repay the outstanding balance
Recommended for	Members who need a fixed amount, do not anticipate needing additional funds, and prefer a fixed rate and payment.	Members who are not sure what amount they want to borrow, anticipate needing various advances over an extended period of time, want the flexibility of accessing the funds when they need them and prefer a variable rate.
Payments	Equal monthly installments over a fixed period of time, terms vary from 3 to 15 years	First 5 years during the draw period, payments are equal to the greater of interest only or $25. After the draw period payments are substantially equal monthly installments over 10 years
Terms	3 years to 15 years, varies based on loan amount	5 year draw period, followed by 10 year repayment period
Loan to Value	80% of Fair Market Value, less any outstanding home liens	All liens plus the HELOC on the home may not exceed 80% of the fair market value of the home.
Funds Distribution	Funds are disbursed in one lump sum at closing	Available funds can be accessed any time during the draw period
Minimum Advance	One-time lump sum request based on loan amount	Advances must be at least $4,000, there is no minimum or maximum number of advances
Tax Deductible Interest	Interest may be tax deductible. You will need to contact your tax advisor	Interest may be tax deductible. You will need to contact your tax advisor
	Learn More	Learn More

Home Equity Loan

Home Equity Line of Credit (HELOC)

Product

Fixed-rate, closed-end loan with equal payments over the term of the loan

Open-end variable rate loan, interest-only payments in 5 year draw period followed by a 10 year repayment period to repay the outstanding balance

Recommended for

Members who need a fixed amount, do not anticipate needing additional funds, and prefer a fixed rate and payment.

Members who are not sure what amount they want to borrow, anticipate needing various advances over an extended period of time, want the flexibility of accessing the funds when they need them and prefer a variable rate.

Payments

Equal monthly installments over a fixed period of time, terms vary from 3 to 15 years

First 5 years during the draw period, payments are equal to the greater of interest only or $25. After the draw period payments are substantially equal monthly installments over 10 years

Terms

3 years to 15 years, varies based on loan amount

5 year draw period, followed by 10 year repayment period

Loan to Value

80% of Fair Market Value, less any outstanding home liens

All liens plus the HELOC on the home may not exceed 80% of the fair market value of the home.

Funds Distribution

Funds are disbursed in one lump sum at closing

Available funds can be accessed any time during the draw period

Minimum Advance

One-time lump sum request based on loan amount

Advances must be at least $4,000, there is no minimum or maximum number of advances

Tax Deductible Interest

Interest may be tax deductible. You will need to contact your tax advisor

Learn More

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