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The Equity in Your Home Can Help
You Achieve Your Goals!
Are you ready to move forward with a remodeling project? Is it time to take that family vacation you've been dreaming of? The equity in your home can provide you with the cash you need for any purpose, including: Remodeling projects, landscaping, vacations, college tuition, home improvements, large purchases such as auto, boat, RV, or bill consolidation! At Black Hills Federal Credit Union, we have the very best Home Equity lineup in the Black Hills with competitive rates, no fees*, interest rates that may be tax deductible**, and loans up to 100% of the value of your home appraisal or tax assessment! Even if you do not currently have your mortgage with us, we can provide you with a Home Equity loan to get your projects and dreams rolling!
So, what exactly is equity? Equity is the difference between how much your home is worth and how much you owe on the mortgage. For example, if your home is worth $180,000 and you owe $140,000, then the equity available is $40,000.
There are two types of home equity: Home Equity Loans and Home Equity Lines of Credit, also known as HELOCs. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage. The major difference between our loans is the Home Equity Loan is a one-time lump sum that is paid off within a set term, has a fixed interest rate, and the same payments each month. A BHFCU Home Equity Line of Credit, or HELOC, works more like a credit card because it has a revolving balance. The interest rate on the HELOC is variable and can change monthly on the first of each month. A few more details about each type of loan are listed below:
Home Equity Loan - Fixed Rate
- Flexible terms up to 15 years*
- Fixed Rate
- Balloon payment programs
- No minimum to borrow
- The interest rate is increased by 1% on loans with a 90% or greater loan to value ratio based on an appraisal of the property (this means if you choose to borrow 90% or more of your total equity available, your interest rate will increase by 1%).
Home Equity Line of Credit - Variable Rate
- Minimum line of credit of $5,000
- Monthly payment is a percentage of the loan balance with a minimum of $100 per month
- Tiered pricing program - your individual rate will be determined by the type and/or age of collateral offered, length of the loan, and your credit history
- The interest rate is variable and can change monthly on the first of each month
- The interest rate is increased by 1% on loans with a 90% or greater loan to value ratio based on an appraisal of the property (this means if you choose to borrow 90% or more of your total equity available, your interest rate will increase by 1%)
If you have any questions, we would be happy to visit with you! Please contact us at 718-1818 or click on the LiveChat button to talk to one of our friendly representatives.
For further information on Home Equity Loans, visit the Federal Reserve Board's website by clicking on Truth-in-Lending Disclosures.
* Please click here for additional information on our rates and terms
** Consult your tax advisor
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