As a homeowner, you can earn credit for the equity in your home. It’s flexible – you decide how and when to spend your money. Use it when you need it, whether it’s a new kitchen, a new car, or to consolidate debt. Other benefits include:

Your interest may be tax deductible (consult a tax advisor)

  • No prepayment penalty or cancellation fee
  • Use it for just about anything – a car, vacation, home improvement project, medical bill, debt consolidation, and more

What type of Home Equity Loan is right for me?

  • If you do not know how much money you will need, or if you plan on using the money over an extended period of time, you may want a home equity line-of-credit. With a line-of-credit, you have a maximum limit, and are charged interest only on the amount you use at any given time. You will receive convenience checks so that you can simply write a check for the amount you need.
  • If you plan on making one single purchase, or you know the amount of money you need, you may want a fixed rate home equity loan. That means you receive the entire balance at the time you take out the loan.

HOME EQUITY LINE OF CREDIT

Equity – 80% Loan – to – value (LTV) based on  the lesser of the assessed or fair market value as  disclosed on most recent tax assessment.

Home Equity Line of Credit Example:
Value $120,000
LTV x 80%
$96,000.00
First Mortgage $60,000.00
Available Equity $36,000

Type – Closed end line of credit for a 5 year term. (We reserve the right to call or to refinance any existing balance at maturity.)

Fees – $250 Closing Costs, unless a property appraisal is needed; $35 annual fee (fee is waived with an average annual balance of $10,000 or more of the prior year)

Advances –Can be accessed by personal LOC checks or disbursed by cash, check, or transfer to another account by phoning or visiting the office.

Home Equity Line of Credit Payments:
1.5% of the current balance if a 80% LTV loan.
2.0% of the current balance if a 90% LTV loan.

Method of Repayment – Direct transfer from a statement savings or checking account on the 20th or the 1st of the month, or manually sending in the payment. A monthly billing is sent regardless of which way is chosen.

HOME EQUITY LOAN (fixed rate)

Equity – 80% Loan – to – value (LTV) based on fair market value disclosed on prior year’s tax bill. Can go up to 90% LTV when Empower holds first mortgage.

HOME EQUITY LOAN (fixed rate) Example:
Value $120,000
LTV x 80%
$96,000
First Mortgage $60,000
Available Equity $36,000

Type – Closed end loan with a maximum term of 10 years

Fees – $250 Closing Costs

Advances – Total proceeds are advanced one time at loan closing.

Payments – Fixed based on rate and term chosen

Method of Repayment – Direct transfer from a statement savings or checking account, payroll deduction, or manually sending in the payment. A monthly billing is sent regardless of which way is chosen.