Getting in control of your finances doesn’t have to be difficult, but it can be hard to navigate through the vast amount of financial jargon. Take a look below at our frequently asked questions about home equity loans and lines of credit at Financial One.
- What is a home equity loan?
A home equity loan uses the equity in your home as collateral to secure the loan. The interest rate and monthly payments are fixed which guarantees you a steady and predictable repayment schedule for the remainder of the loan repayment.
- What is a home equity line of credit?
A home equity line of credit is a line of credit secured by your home with a variable interest. It is the maximum amount that you can borrow with a mortgage lender. When you borrow, you only pay interest on the amount of money you actually borrow—not the full line amount.
- Why should I choose a home equity loan or line of credit?
A home equity loan or line of credit with a fixed monthly payment will help your budgeting process for short-term and long-term needs much easier.
- Why should I refinance?
Refinancing loans can help you lower your monthly payment or interest rate on a current loan. You can also switch from a loan with an adjustable rate to one with a fixed rate to have a better idea of your monthly bills. Lastly, refinancing allows you to change the remaining term of a loan and refinance for a higher amount in order to pay off existing debt.
- What could my home equity line of credit possibly cover?
A Financial One home equity line of credit (HELOC) is often used to cover education expenses, debt consolidation, home renovations and repairs. You can also use a HELOC to finance special life events, like weddings, a new baby, family vacations, and more.
- How can I protect my loan?
To provide the best possible coverage protection on your loan, Financial One offers a Payment Protection plan with Credit Life and Credit Disability insurance. The Payment Protection is available to safeguard your credit and collateral.
Rates and Repayments
- What rates are available?
Loan rates vary based on the loan, your mortgage history, and other factors. Visit our website to view a chart of available rates.
- What terms and repayment options are available?
Financial One Credit Union offers flexible loan plans. Our home equity installment loans feature a fixed annual percentage rate with flexible terms, ranging from 5 to 15 years. Home equity 5-year balloon installment loans feature a fixed annual percentage rate with a 5-year term and a repayment period of up to 20 years.
With loan amounts as small as $5,000, Financial One offers member-first, professional, and helpful service throughout your entire loan seeking process. Visit Financial One Credit Union for more information or apply online for a home equity loan or line of credit.