If you’re a homeowner facing some upcoming big expenses like college or home improvements, a Home Equity Line of Credit (HELOC) may be just the solution.
A HELOC is a line of credit that you borrow against the value your home has built up. It’s open-ended, so you can withdraw only the money you need as you need it within a specific time period. Borrow any amount up to your credit line at any time within 15 years, subject to terms of the account agreement and you only pay interest on the amount advanced.
If you have an LGFCU mortgage, you can borrow up to 90 percent of the appraised value of your home, minus the amount owed on your mortgage. If your first mortgage is not with LGFCU, you can still get an LGFCU HELOC, with the ability to borrow a maximum of $100,000 or 90 percent of the appraised value of your home minus the amount owed on your mortgage, whichever is less.
Your HELOC can provide overdraft protection for your LGFCU Checking Account, and interest payments may be tax deductible; consult your tax advisor. You can access more cash even faster with a real-time loan advance from your HELOC.
Home Equity Line of Credit Modification Program
If you have an existing LGFCU HELOC you may be able to lower your interest rate to the current rate for new HELOCs. To qualify your first mortgage must be with LGFCU or the HELOC must be the only mortgage on your property. Just fill out the Home Equity Line of Credit Modification Form and bring it to the nearest branch. You can also get a lower rate when you choose to repay your HELOC through ACH funds transfer or Payroll Deduction.
Is a HELOC right for you?
Only primary residences are eligible, and the property must be in North Carolina, South Carolina, Virginia or Georgia. A HELOC is a good solution for a one-time major expense.