HELOC FAQs
What is the difference between a Home Equity Line of Credit and a Home Equity Loan?
Think of a Home Equity Line of Credit as you would a credit card. As you make payments during the draw period, that amount then becomes available for you to use. Interest and monthly payment are calculated only on the amount that you have used. For example, if you are approved for a credit line of $100,000 but use only $50,000, your interest and payments will be calculated based on the $50,000.
With a Home Equity Loan, you get the full amount approved at funding, and interest and payments are based on that total loan amount.
Are there any closing costs or fees?
AFCU only charges $100.00 as a Processing Fee. 3rd Party Fees such as Credit Reports, Flood Certification, Title Fees, Legal Fees and Government Fees, etc. are borrower responsibility and due at the Closing table. The Appraisal Fee is paid in advance and non-refundable. There will be a recapture fee (Prepayment) of $1,000 if you fully satisfy the loan within the first 12 months. Rates and fees are subject to change. Please verify current fees and rates.
How does the program work?
Once the loan is closed and funded, you will have access to the via your AFCU account. Funds can be transferred (advanced) freely between your deposit accounts. HELOC Checks (first 8 is free), will also be issued to you and can function as a regular check written against your Checking Account.
Can I get a Home Equity Line at any time?
Yes. As long as the loan request does not exceed the 80% Combined Loan-To-Value (CLTV) cap.
Do I need title insurance?
Title Insurance may be required.
Home Equity Line of Credit Terms
- Minimum credit line: $50,000.00.
- Maximum credit line: $800,000.00.
- 20-year term with 5-year draw, 15-year payback OR 10-year draw, 10-year payback (Interest Only).
- Adjustable based on prime.
- Up to 80% CLTV on houses, condos, and co-ops.
- Lifetime rate cap of 18%.
- Share Savings Account is required for all borrowers (Joint or Separate).
- Rates subject to change without notice.
- AFCU does not allow multiple current HELOC’s/Home Equity Loans at the same time against 1 property.
