Home Equity Line of Credit

Borrowers are given a credit limit that they can borrow against as needed during a draw period (typically 10 years), monthly repaying either the interest or principle and interest on the borrowed amount. The member can borrow up to their maximum by writing a check (minimum check amount of $250) or accessing SCUCU Online banking.  As the loan balance decreases, the member can “re-borrow” up to the line of credit limit.

The difference between the tax assessed or appraised value of the property minus any existing liens.

LTV is a ratio that compares the amount of the HELOC to the appraised or assessed value of the property.

• For example, if a home is valued at $400,000 and loan request is $200,000, the LTV would be 50%.

The CLTV is a ratio that compares the amount of the HELOC plus the outstanding balance of a first mortgage to the appraised or assessed value of the property.

• For example, if a home is valued at $300,000 and loan request is $50,000, and the first lien mortgage is $190,000 the CLTV would be 80%.

A full home inspection is not required.

The LTV or CLTV is initially based on the most current tax assessed value. If either ratio is greater than 80% then a property appraisal will be required to determine the value of the home for the HELOC. All HELOC Amounts equal to or greater than $400,000 will REQUIRE a full appraisal at the borrower’s expense.

A Borrower can obtain advances of credit for 10 years (“the draw period”). After the draw period ends, they will no longer be able to obtain credit advances and must pay the outstanding balance over 10 years (the “repayment period”). During the repayment period, substantially equal monthly payments of principal plus interest will be required, although the rate of interest and the monthly payments may vary as the prime rate varies.

SCU Credit Union current mortgage members, as well as anyone who qualifies for membership and owns a primary residence or second home and can meet established credit and equity criteria.

Anyone who needs to borrow money for home improvement, debt consolidation, education, vacation, new cars or boats, medical expenses, etc. In short, anyone who needs or wants to borrow money and has sufficient equity in the home.

During the Draw Period, payments are calculated to include .5% of the principal balance plus all accrued unpaid finance charges. The payment cannot be less than $50 plus finance charges. During the Repayment Period, payments are calculated based on the sum of 1/120^th of the then unpaid principal balance (except to the extent that the principal portion of the payment cannot be less than $50) plus all accrued unpaid finance charges. The payment cannot be less than $50 plus finance charges.

During the Draw Period, payments are calculated to include all accrued unpaid finance charges only (Interest Only).

During the Repayment Period, payments are calculated based on the sum of 1/120^th of the then unpaid principal balance (except to the extent that the principal portion of the payment cannot be less than $50) plus all accrued unpaid finance charges. The payment cannot be less than $50 plus finance charges.

Yes, even if the Borrower selects the interest-only payment option, they can still make principal payments at any time, which will reduce their overall balance and interest payments.

The interest rate is based on the prime rate as published on the last business day of the month in the Wall Street Journal. This rate will then be adjusted on the 1^st day of the following month. If the journal published more than one prime rate, we will use the higher rate.

The member should complete Sharon & Crescent United Credit Union’s Open-End Home Equity Application.

Appraisal fee and/or flood insurance may be required. No points or attorney fees are associated with this loan. Applicable Trust and Power of Attorney review and recording fees apply. If the line of credit is paid off within 36 months, the borrower will be responsible for waived closing fees. Refer to the Important Terms of Your Home Equity Line Of Credit Disclosure for applicable fees.

Closing on a HELOC generally occurs after the borrower receives a commitment letter and all requested documentation has been received and reviewed. As well as required property condition, title, and deed report.  The closer will coordinate a closing date and time with the borrowers.

This is a period which gives the borrower three business days to reconsider a signed credit agreement and cancel the deal without penalty.

Access to the line of credit can be obtained through checks and online banking transfers.

The process generally takes about two to six weeks. The exact length varies on the complexity of your application and how quickly you can compile the necessary paperwork.

It’s a revolving line of credit secured by a home’s equity. The credit limit is based on a percentage of equity in the home (usually up to 80%, depending upon the borrower’s credit worthiness and ability to repay). The Lender will place a mortgage on the home in the amount of the credit limit.

After the first 12 months, the rate on the outstanding balance will revert to a Variable APR at .50% below the prime rate as published in the Wall Street Journal on the last business day of each month.

Yes. $10,000.

Yes. $500,000.

This interest only line of credit includes an introductory Rate. During the first twelve (12) months that the account is open there is a discounted introductory rate. {Subject to change, refer to rate page for changes}. Upon the expiration of the introductory period the line of credit is then charged the non-introductory variable rate that would otherwise apply at that time.

This principal and interest line of credit includes an introductory Rate. During the first twelve (12) months that the account is open there is a discounted introductory rate {Subject to change, refer to rate page for changes}. Upon the expiration of the introductory period the line of credit is then charged the non-introductory variable rate that would otherwise apply at that time.