Home Equity Line of Credit

At PACE Resources Federal Credit Union we can help you finance your next project with a Home Equity Line of Credit (HELOC). Make the equity in your home work for you. Check below for more information!

FAQS

What is a Home Equity Line of Credit?

• Our Home Equity Line of Credit (HELOC) is a revolving loan with a fixed rate, fixed payment and your home is used as collateral (PACE Resources Federal Credit Union with be first or second lienholder). Depending on the amount of equity in your home determines how much you can borrow.
• HELOCs can be used to:
  • Complete home improvement projects
  • Consolidate bills
  • Pay for education expenses
  • Pay for upcoming weddings or other special events
  • Purchase a new/used vehicle

How do I find out how much equity I have in my home?

• Equity is determined by this equation: your property’s current fair market value – Amount of any mortgages = equity
  • For example:
    • The current value of your house is $200,000
    • The balance of your mortgage is $125,000
    • $200,000 – $150,000 = $75,000 in Equity

How much can I finance?

• PACE Resources Federal Credit can finance up to 80% of the appraised value of your home.
  • Following the example above:
    • The current value of your house is $200,000
    • 80% of $200,000 is $160,000
    • PACE Resources Federal Credit Union can finance the difference between $160,000 and the balance of your mortgage, $125,000 – so the maximum amount of the HELOC would be $35,000.

What fees are associated with the Home Equity Line of Credit?

• Members are responsible for the cost of appraisal, recording fee, flood determination fee and property lien search fee when applying for the Home Equity Line of Credit. Click here to see our current fee schedule.
• When the loan has been paid off the member is responsible for paying the satisfaction fee.

What is the process for applying for a Home Equity Line of Credit?

1. Print off a loan application or visit one of the Credit Union offices for an application for each applying member, bring along your ID and most recent paystub.
2. The Credit Union will contact the appraisal company, who will then reach out to you to set up a time to do the appraisal. Once the appraisal comes back to the Credit Union, we will give your application to the credit committee to review.
3. Once approved, you will need to contact your insurance company and have us added as first or second lienholder on your property. The insurance company will need to send us verification that we have been added as lienholder.
4. Once we received verification from your insurance company we can sign the paperwork!

How can I make an advance on my loan?

• Visit any of the Credit Union offices to fill out a form for the advance. The minimum amount of an Advance is $500.

What are the limits on my Home Equity Line of Credit?

• When applying for a Home Equity Line of Credit, the minimum amount you can apply for is $5,000 and the maximum loan amount is $85,000*.
• The minimum amount of an advance is $500.

 

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*The aggregate of all loans to a member at one time, which is the maker of the loan, cannot exceed $85,000 plus financed insurance premiums. For example, a member can have a $10,000 Signature Loan, a $10,000 VISA Credit Card, and $65,000 Home Equity Line of Credit.