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Home Equity Loans FAQs

Q: What type of equity loans does the Credit Union offer?
A: We offer fixed-rate second mortgages and Home Equity Lines of Credit (HELOC) on primary residences and second/vacation homes for loan amounts up to $300,000 at 90% of the appraised value.

Q: What states does the Credit Union provide loans in? 
A: We offer equity loan financing in Maryland, Delaware, the District of Columbia, Pennsylvania, Virginia and West Virginia.  

Q: What HELOC loan options are available? 
A: The Credit Union’s HELOC offers flexibility with an adjustable rate with a 10-year draw period and a 15-year repayment period. During the 10-year draw period, funds can be drawn on an as-needed basis.

Q: What fixed equity loan options are available? 
A: The fixed rate and term equity loan can have a term from five to 15 years with a fixed payment amount. 

Q: How can I apply for an equity loan? 
A: You can apply online for an equity loan.  

Q: Can I speak to someone before applying for an equity loan? 
A: Yes, our loan officers are available to answer any questions Monday through Friday from 8:30 am to 5:00 pm. Please call 301.779.8500 ext. 4045.

Q: How much does it cost to apply for an equity loan? 
A: There is no upfront cost to apply for an equity loan.

Q: Does the Credit Union require an appraisal for an equity loan? 
A: Yes, an equity loan does require an appraisal. The appraisal value determines the loan terms.

Q: Where can I find current rates for an equity loans? 
A: Our equity loan rates and product information can be found on our website.

Q: Does the Credit Union offer checks to access HELOC funds? 
A: Yes, the Credit Union offers checks. The checks allow you to pay for goods or services directly from your HELOC. In addition, funds can be transferred online directly to your checking or savings account.

Home Equity Loan Servicing

Q: How can I get a copy of my statement to see my payment amount?
A: Equity loan payments can be found on your monthly statement that is generated and sent out at the beginning of the month. Your payment amount can also be found in Digital Banking. 

Q: How can I make my mortgage payment?
A: There are many options to make your monthly mortgage payment:

  • The easiest and quickest method with the most flexibility is paying online. Reoccurring payments can be set up or monthly payments can be made manually when desired.

  • Automatic payments can be setup by the Credit Union and so you will not need to worry about remembering to make your payment. The payment can come from your Educational Systems FCU account or from another financial institution.

  • Payments can be sent from another financial institution and applied directly to your mortgage loan.

  • Payments can be mailed in using the coupon attached to the monthly mortgage statement.

  • Payments can be made at any of our branches or by calling our Contact Center at 301.779.8500. 

Q: Can I make bi-weekly payments?
A: Yes, payments can be made at any time but the full payment due would need to be made by the due date each month. Loan payments are billed on a monthly basis. 

Additionally, alternative savings and payment structures can be set up to help you budget based on your unique pay schedule. A separate savings account can be opened to deposit sufficient funds for the monthly mortgage payment. This will help you keep the funds for the mortgage payment set aside to ensure they are available when the monthly payment is due.

Q: Can I change my payment date? 
A: No, equity loan payments are set when the loan is originated. Payments received after the due date are considered past due but a late fee is not assessed until five days after the payment is due. To ensure payments coming from another financial institution are received in a timely manner, we recommend having the funds available and sending the payment no later than five days prior to the due date to avoid any delays that many occur in the availability and posting of the payment.

Q: How do I make an additional principal payment?
A: Any additional amount over the scheduled payment amount will automatically be applied as principal reduction if it is included with the regular monthly payment regardless of the payment method.

Q: Where can I find the amount I paid in interest for the past year?
A: A 1098 form is sent to members with mortgage accounts that had $600.00 or more of interest paid during the year. Additionally, the monthly statement reflects how much interest was paid for the current year.

Q: How can I obtain a payoff for my equity loan? 
A: Payoff requests can be faxed to 301.985.4667 or emailed to [email protected]. Please provide a wet signed copy of the borrower’s authorization. Verbal requests and electronic signature are not accepted as they cannot be validated or authenticated. Please allow five business days for processing.

Q: I need a lien release for an equity loan I paid off, how do I get a copy?
A: Lien release requests can be faxed to 301.985.4667 or emailed to [email protected].

Q: How do I get a subordination? 
A: Subordination requests can be faxed to 301.985.4667 or emailed to [email protected].

Q: I have a question about my current equity loan with the Credit Union. Who can help me?
A: General questions including making a payment can be directed to our Contact Center at 301.779.8500. More specific questions about your equity loan with Educational Systems FCU can be faxed to 301.985.4667 or emailed to [email protected]. Phone calls can be made directly to the Mortgage Department at 301.779.8500 ext. 4045.

Q: Is there a grace period for payments? 
A: Equity loan grace periods vary depending on the specific loan but are typically five days.

Q: Why does my payment change on my HELOC?  
A: Your payment is based on the loan balance and can fluctuate as the loan balance changes.

Q: I am changing homeowner’s insurance policies. What do I do?
A: Please add our mortgage clause to the new insurance policy:
  Educational Systems Federal Credit Union 
  Mortgage Servicing
  PO Box 179
  Greenbelt, MD 20768

Q: How do I order new HELOC checks? 
A: You can email [email protected] or call the Mortgage Department directly at 301.779.8500 ext. 4045.
 

Here to help

301.779.8500 ext. 4045
[email protected]

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