Home Equity
Your home’s equity is there when you need it.
Not looking to move? Improve!
Home equity is the difference between the value of your home and how much you owe on your mortgage. Every payment made on your mortgage is contributing to your home’s equity, which can be used to fund one-time or ongoing expenses.
If you have equity in your home and are looking to borrow more than $20,000, a Home Equity Loan or Line of Credit (HELOC) may be a great option for you. Plus, enjoy low closing costs1 and up to 0.50% APR2 rate reduction when you qualify for Rewards Rates.
Your home equity options
Home Equity Loan
Good for one-time expenses, receive a one-time lump sum upfront secured by the equity in your home.
Details:
Affordable fixed interest rate, up to 20-year term
Consistent monthly payments make it easier to budget
Borrow the full amount
No annual fee or pre-payment penalties
Rate:
APR as low as
8.125%
Home Equity Line of Credit (HELOC)
For recurring needs, tap into the equity in your home with ongoing access to funds up to a preset credit limit.
Details:
Low variable interest rate
The amount borrowed can change, therefore minimum payments vary
Borrow as little or as much as you need
Interest-only payment options available
Rate:
APR as low as
7.75%3
Already have a Home Equity Loan or HELOC? Get up to $250 cash4 when you make the switch to BCU!
“We were incredibly impressed with the service and communication for our HELOC application. When we shared an urgent deadline, BCU expedited the process and worked closely with us.
NEVER have we received such incredible service from a financial institution!”
Katheren M, member since 2020
Alternatively, if you’re looking for quick access to funds less than $20,000, you can do so without tapping into your home’s equity. Check out an Unsecured Home Improvement Line of Credit.
Frequently Asked Questions
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What’s the difference between a Home Equity Loan and Line of Credit (HELOC)?
It all comes down to your need! If you have a one-time expense such as short-term home improvement and are looking for a fixed rate with a predictable monthly payment, a Home Equity Loan might be best. If you anticipate needing flexibility for funds over time for things like ongoing renovations or debt consolidation, a HELOC may be better suited. A Home Loans Expert would be happy to discuss your needs and point you in the right direction.
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What determines the rate on my loan?
Your credit score is one of the factors used to determine the rate on your loan. Sign up for your Free Credit Score for ongoing reporting and monitoring. We’ll also review how much of your monthly income goes toward paying down debt (debt-to-income ratio).
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How much can I borrow?
The value of your home will be a key factor in understanding how much you’re eligible for, with the flexibility to go up to 100% loan-to-value (LTV).
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How can I prepare before applying?
Additional items may be requested, but a good place to start would be to compile W-2s along with recent pay stubs for proof of income, bank account and mortgage statements, as well as personal identification.
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I’m ready to move forward. What are my next steps?
Once you’ve decided on a Home Equity Loan or Line of Credit, go ahead and apply. Upon completion, you’ll receive communications regarding the loan decision. A Home Loans Expert will contact you to answer any questions you have throughout the process. After that, you’ll sign some closing documents and get access to your funds!
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Disclosure
1Closing costs vary by state and range from $700-$1300. Borrower may be responsible for closing costs, such as appraisal, flood determination, title insurance and recording fees. Costs to satisfy certain prior liens may be assessed.
2You may reduce your APR up to 0.50% with Rewards Rates. This includes a 0.50% discount for having two of the following relationships: direct deposit of at least $1,000 per month into your credit union checking account; at least $25,000 on deposit, or a loan in good standing. Qualifying loan types include mortgage, home equity, auto, and credit card. A qualifying loan must have a current balance and credit cards must have a transaction within the past 30 days. Any Credit Union loan that is not in good standing or delinquent will disqualify you for Rewards Rates. All rates are subject to credit certification and approval. The rates shown are the lowest available and your rate may be higher.
3APR is Annual Percentage Rate. The APR is a variable rate based on the highest Prime Rate published in the “Money Rates” section of The Wall Street Journal on the first business day of the calendar month. The APR on BCU’s equity line products vary between 2.99% and 18.00%, depending on your approved commitment amount, product and credit qualifications. Rates shown assume an automated payment method. You may reduce your APR up to 0.50% with Rewards Rates. This includes a 0.50% discount for having two of the following relationships: direct deposit of at least $1,000 per month into your credit union checking account; at least $25,000 on deposit, or a loan in good standing. Qualifying loan types include mortgage, home equity, auto, and credit card. Closing costs vary by state and range from $700-$1300. Borrower may be responsible for closing costs, such as appraisal, flood determination, title insurance and recording fees. Costs to satisfy certain prior liens may be assessed. Property insurance is required; flood insurance may be required. Offer applies to owner-occupied residential 1-4 family properties and is subject to no less than a second lien position on your property and is subject to our underwriting standards. Consult your tax advisor regarding the deductibility of interest. All loans subject to final credit approval, which includes verification of application information and receipt of collateral documents.
4A Home Equity Loan or Line of Credit must be transferred to the Credit Union from another financial institution to qualify. Cash back amount will vary by state. GA, WI, AZ, FL, MD, and NY members will receive $200 cash back. All other states will receive $250 cash back. Cash back amount will be deposited into your Credit Union savings or checking account when the loan closes. We will not deposit the cash back amount into an account at another financial institution. Applies to loans up to 80% LTV (loan-to-value). Must take a minimum initial advance of $20,000 in new money in order to be eligible for the cash back offer. Existing Credit Union Home Equity Loans/Lines of Credit and Credit Union First Mortgages do not qualify for this offer.