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Home Equity Line of Credit

Cash in on your home's equity for large or unexpected expenses

A Home Equity Line of Credit (HELOC) from SCCU is a good choice if you need money periodically or want to have money on hand for emergency funds. Our HELOC gives you the flexibility to borrow what you need, when you need it. SCCU HELOCs offer you flexibility and access to your funds with lower rates than many credit cards or personal loans. Plus, with No Closing Costs on most equity loan options, we make it easy to get fast access to that cash!
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Product Features

Terms & Fees
Terms 7- or 10-year withdrawal, with 7- and 10-year repayment
Application Fees None
Pre-payment Penalties None
Origination Fee None

Adjustable Rate Home Equity Line of Credit (HELOC) Interest Rates

Effective Date: August 03, 2020
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Term 12 Month Intro Rate APR* "As Low As" Thereafter APR* "As Low As"
Principal-and-Interest Option
7 year draw / 7 year repayment period
1.99% 3.00%
Interest-Only Option
10 year draw / 10 year repayment period
3.75% 3.75%

Special Introductory Rate valid on Principal-and-Interest HELOC for 12 months. Thereafter, the HELOC will have a Variable Rate feature as described below. Introductory rate not available on Interest-Only HELOC.

Your actual interest rate will be based on the available equity in your home, the amount of your loan, your credit history, and product chosen. Other programs, rates, and terms may be available. Approval is subject to our usual credit criteria. Proof of homeowner’s insurance sufficient to cover all outstanding mortgages, including your SCCU equity loan, and any other obligations secured by the home and property, is required. Certain restrictions may apply.

No Closing Costs (Home Equity Loans): SCCU will waive typical third-party fees associated with closing a Home Equity loan, such as appraisal, photo inspection, recording, state tax stamps, title exam, and title insurance. Must be primary residence. Available on loans up to $250,000. For Fixed-Rate Home Equity Loans (2nd Mortgages) in the first lien position, valued at $50,000 or more, waived costs do not include prepaid escrow amounts. Additional fees may apply for loans over $100K, and/or for special Deed preparation requirements.

You must already be a member of the credit union, or establish membership, which requires a one-time $5 deposit to open and maintain a regular savings account. Offers and rates subject to change at any time.

Current Prime Rate is 3.25%
 
Principal-and-Interest HELOC
As low as Prime minus 0.50% w/floor (minimum rate) of 3.00% and ceiling (maximum rate) of 18.00%
Term: 14 years, the first 7 years you may draw against/utilize the credit line similar to that of a credit card and are required to make a monthly payments equal to 1.5% of your outstanding balance, with a $100 minimum. During these first 7 years, like a credit card, as you pay your outstanding balance your available credit will be replenished and may be drawn against/utilized again. Your available credit equals maximum credit line minus total outstanding balance. During the final 7 years you may no longer draw against/utilize the credit line. Whatever balance remains at the end of the first 7 years must be paid in monthly installments. Required monthly payment equals 1.5% of the prior month's balance, with a $100 minimum payment. There is a possibility of a balloon payment at the end of the repayment period. Once the monthly minimum payment due is satisfied, you may choose to make additional payments toward the principal. The interest rate is still variable, thus monthly payments will vary depending on the current interest rates. However, as an option you may refinance to renew your credit line or convert to a fixed home equity loan.
 
Interest-Only HELOC
As low as Prime plus 0.25% w/floor (minimum rate) of 3.75% and ceiling (maximum rate) of 18.00%
Term: 20 years, first 10 years you may draw against/utilize the credit line similar to that of a credit card and are required to make minimum monthly payments equal to accrued monthly interest determined by the current interest rate and your outstanding balance. During these first 10 years, if you choose to pay more than your interest-only payment, thus lowering your outstanding balance like a credit card, your available credit will be replenished and may be drawn against/utilized again. Your available credit equals maximum credit line minus total outstanding balance. During the final 10 years you may no longer draw against/utilize the credit line. Whatever balance remains at the end of the first 10 years must be paid in monthly installments. Each monthly payment includes principle and interest, and equals 1.5% of the prior month's balance, with a $100 minimum payment. There is a possibility of a balloon payment at the end of the repayment period. Once the monthly minimum payment due is satisfied, you may choose to make additional payments toward the principal. The interest rate is still variable, thus monthly payments will vary depending on the current interest rates. However, as an option you may refinance to renew your credit line or convert to a fixed home equity loan.

Frequently Asked Questions

Most types of mortgage-related financing will have some costs and fees associated with them. At Space Coast Credit Union, our home equity lines of credit have no points, no loan origination fees, and no intangible tax. To learn more, we invite you to request a loan consultation with an SCCU loan officer, who will be glad to answer all of your questions.

A number of factors are involved in the determination of your qualification for a HELOC. These include, but may not be limited to, the following:
  • The amount of equity in your home: You must owe less on your home than your home is worth. Depending upon the lender and its financing terms, your equity may need to be a minimum of 15 or 20 percent of its appraised value.
  • Your creditworthiness: During the application process, your credit score will be checked. A typical credit score threshold is 620 or higher.
  • Your debts and income: Just as it was when you obtained your mortgage, your debt-to-income (DTI) ratio will be calculated when determining what you can afford to borrow against your home's equity. Generally, your total debts cannot exceed 43 percent of your income for a home, although some lenders offer programs with DTIs as high as 50 percent.
  • Your payment history: Lenders will look at how promptly you have paid your bills in recent years.
Use Space Coast Credit Union's convenient home equity calculator on our calculators page to learn more about whether a HELOC may be right for you.

Space Coast Credit Union members enjoy a fast and easy HELOC application process online or by calling our Express Sales Associates. We'll take your application over the phone and you'll hear back from your personal Mortgage Representative within one business day.

You may reach Express Sales on weekdays from 8:00 a.m. to 6:30 p.m. and on Saturdays from 9:00 a.m. to 3:00 p.m. at these numbers:
  • Brevard: 321-752-2222, option 3
  • Broward: 954-704-5000, option 3
  • Miami-Dade: 305-882-5000, option 3
  • All other areas: 800-447-7228, option 3
Some of the information you'll need to have handy when you apply for a home equity line of credit includes Social Security numbers and income information for all borrowers, details on your recent employment history, information on your current mortgage loan balance, and details on your bank and brokerage accounts.

A home equity line of credit, which is also commonly referred to by its HELOC abbreviation, allows you to borrow against the available equity in your home. As with most other types of loans, a home equity line of credit must be secured by collateral—with a HELOC, your house is that collateral.

Unlike a home equity loan, you won't automatically receive a single sum of money when you close on your credit line, although you may choose to do so. Instead, a home equity line of credit works more like a credit card account. You have a specified amount of credit to draw from, and your outstanding credit line balance will be reduced as you repay it.

The length of time you have to pay off a HELOC varies according to your specific loan terms. In general, however, your home equity line of credit will have a set time period—also referred to as a draw period—which may be 5, 10, 15 or 20 years. Contact us for more information on the available terms of SCCU's home equity lines of credit.

When you want to take advantage of the equity that's built up in your home, you have a number of options, including refinancing or getting a HELOC. Either may help you achieve your goals for borrowing, but there are a few differences between the two:
  • A HELOC can be an affordable way to borrow money that you plan to repay in a relatively short timeframe. You access your money as you need it, rather than take all of it at once and make payments on that full amount.
  • A cash-out refinance lets you access your borrowed equity in one loan. You refinance your existing mortgage loan and have a new first mortgage. The difference between your original loan amount and your new, larger loan amount is given to you in cash.
As with any financial tool, the one that's right for you depends on what you plan to do with your equity, your personal money management habits, and other individual circumstances. At SCCU, we offer a full range of mortgage products at competitive interest rates to help you achieve your financial goals. View our latest home equity line of credit rates.

How you use your HELOC depends upon your financial goals. One popular use is to reduce the rate of interest you pay on borrowed money by consolidating higher-interest debt or paying off loans with higher rates. This may be particularly important if your existing debts are financed at a rate that's several percentage points above a HELOC interest rate, which typically is lower than other types of loans. Many homeowners also secure a home equity line of credit to make major home improvements, pay college tuition, or maintain an emergency fund.

If you have sufficient equity in your home, you may even be able to purchase a second home or investment property. It's important to keep in mind, however, that your primary residence is your collateral, so you may not want to use your equity for a second home that you don't plan to pay off quickly.

The main difference between a HELOC and a home equity loan is that you receive the full amount you're borrowing with a loan in a lump sum. With a HELOC, you can draw money in any increments when you need them, up to the maximum pre-approved credit line amount.