Second Mortgage
A second mortgage, commonly referred to as a home equity loan, allows you to use the “equity” in your home to secure a loan. Equity refers to the difference between what your home is worth and what you still owe on your first mortgage. Freedom Credit Union offers two varieties of Home Equity Loans: Variable Rate Lines of Credit and Fixed-Rate, Closed-End loans.
Home Equity Line of Credit (HELOC)
For maximum flexibility and the lowest payment, a credit line tied to the equity in your home is a great option. You can borrow money as you need it, and monthly payments are based on 15 year repayment terms. As you pay the balance down, that equity is available for you to borrow again quickly and easily.
Fixed Rate Second Mortgage
If you don’t need the flexibility of a line of credit or prefer a fixed rate on your home equity loan, a fixed rate loan a great option to consider. We offer terms up to fifteen years at low, fixed rates. With low closing costs and fast turnaround time, we make the process easy!
What are the benefits of a Second Mortgage?
A home equity loan offers many potential benefits, including:
- Tax deductibility – The interest paid on a home equity loan may be tax deductible. Be sure to check with your tax advisor regarding the deductibility of interest.
- One low payment – If you currently have many monthly bills, consider consolidating them into a single loan with one easy payment.
- Lower interest rate – A home equity loan offers very attractive rates. Savings are often dramatic when consolidating higher-interest credit cards.
- Get out of debt faster – If your goal is to get completely out of debt, restructuring your debt with a home equity loan may help. With discipline and patience, you may be surprised at how quickly you can eliminate your debts.
If you would like to explore your options and see which home equity loan is right for you, speak with any of our member advisors; we love to help!
Home Equity Line of Credit
Is it time to consolidate debt? Are you ready for some home improvements? Is that dream vacation calling? Use the equity in your home accomplish your goals!
Your loan will be underwritten, approved, and serviced right here by people you know and trust. Contact us today to get started!
*On approved credit. Estimated fees to establish a variable rate Home Equity Line of Credit $400. Variable rate as low as Prime + 0%. Maximum APR 12%. The annual percentage rate may vary after the account is opened. NMLS #640476.
Q: How long does it take to get a HELOC?
A: The entire process usually takes 2-3 weeks from the time we receive your completed application until you have the funds in hand.Q: What documents are required?
A: We need the following documents:
- Completed, signed mortgage loan application
- Mortgage statement showing the current balance of your 1st mortgage
- Insurance information verifying the coverage limits and cost of your home owner’s’ insurance
- Paystub or W2 showing YTD income for all borrowers
- Information regarding HOA dues, if applicable