Loan Services: Home Equity Line of Credit
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There's never been a better time to have an
Emory Alliance CU Home Equity Line of Credit!
Advantages of a Home Equity Line of Credit
During the revolving period of your line, you may access your account when you need it, and pay interest only on the amount you borrow.
There are no pre-payment penalties. So you can either pay the minimum payment or you can set your own repayment amount.
Transferring funds from your Equity Line to your checking, savings, money market or IRA account is made easy with Audio Xpress or Personal Branch Online.
With a variable rate based on the Prime Rate, our program protects you from large rate fluctuations by imposing a cap of 2% up or down in one calendar year.
Free, convenience checks makes it easy to access your account when you need it.
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- No Application Fee
- No Annual Fee
- No Closing costs*
- Simple Interest Payments
- Tax Benefits**
- Convenient repayment of your account through payroll
deduction or electronically from any banking account
- Fast, easy access to your Line of Credit through
Personal Branch Online, Audio Xpress, or Convenience
Checks
- Exceptional rates as low as the Prime Rate + 0% (As of
3/19/2008 Prime Rate is 5.25% annual percentage rate,
see below)***
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* If account is closed before one year of establishment
by the borrower, all closing costs will be billed to the account prior
to closure.
** Always consult with your Tax Advisor regarding qualified income tax
deductions.
*** The Prime Rate as published by the Wall Street
Journal and is adjusted quarterly, with
possible increase or decrease of 2% in one calendar year, and 6% over
the life of loan. Rates based on credit qualifications.
APR - Annual Percentage Rate
The Home Equity Equation
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Example
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Your Home
Use this formula to help you calculate your equity. We also offer other home equity programs for those with less equity. Ask our mortgage loan officer for details. |
- Estimated value of your home:
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$150,000 |
- Multiply by 90% for maximum loan to value:
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X 90% |
- Subtract remaining mortgage principal:
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$135,000
$120,000 |
- Estimated amount available to borrow:
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$ 15,000 |
Being a homeowner has it's advantages. Over time, the market value of your home appreciates and as you continue to make monthly mortgage payments and reduce your outstanding balance, you have created a cash reserve called "equity".
Your home equity is the difference between its appraised value and the balance of all of your mortgage loans. |
You can use your line of credit for a variety of reasons, listed below are the most common uses:
- Debt Consolidation
- Home Improvement
- Auto Purchase
- Education expenses
- Major purchase
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- Investment
- Household expenditures
- Business expenses
- Medical expenses
- Vacation
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Monthly payments are calculated by determining the outstanding balance during the month and multiplying the outstanding balance by 1.6%.
Example
Line of Credit : $25,000
Current Balance: $15,000
Monthly Payment: $240
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To start the application process for a Home Equity Line of Credit account:
- Complete the application.
- Provide us with verification of your income, such as a pay stub or a letter from your personnel department (If you are self-employed, please provide a copy of your income tax return for the last two years).
- A copy of your Warranty Deed.
- A copy of your Homeowners Insurance Coverage
- Your application will be processed within one business day of receipt of all documents.
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