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Home Equity Lines of Credit

Imagine the possibilities with a Home Equity Line of Credit

When you have equity in your home, you have options. You can use that equity to pay for home improvement projects, college tuition or debt consolidation. A Home Equity Line of Credit allows you to borrow money for up to 10 years from the equity you have in your home any time you need it. Plus, you'll have up to 15 years to repay the balance.  Your monthly payment is based only on the amount being used.1 Here are some other great features of our Home Equity Line of Credit:

  • No closing costs2
  • Closing within three weeks
  • Financing options up to 90% of your home's appraised value3
  • Possible tax benefits4

You'll save money with an introductory rate of 2.99% APR5 for the first 12 months and then a low variable rate thereafter.

Estimate your equity

The first step is to calculate your home’s equity through a real estate site such as for a free estimate. When you have your estimated value, multiply it by 90% to determine the maximum equity you can borrow. Using that maximum equity amount, subtract the outstanding balance on your current mortgage. The difference between your maximum equity value and what you owe is the amount of equity available for your loan.
                               (market value x .90) - (first mortgage balance) = estimated equity

What you'll need for your application:

  • Current mortgage statement
  • Current employment and income information (recent paystub, retirement benefit statement, most recent tax return)
  • Proof of homeowner's insurance
  • Other documentation may be required

Here to help

Talk to a Mortgage Loan Specialist at 301.779.8500 ext. 4045 or apply online or at a branch.
1 Payments are based only on the amount being used with a minimum payment of 1.25% of the outstanding month-end balance.
2 An initial advance of $10,000 is required at closing. In addition, the line of credit must remain open for 36 months.  Loans paid off and closed in less than three years from the loan origination date will require reimbursement of all closing costs paid by Educational Systems FCU.  The Credit Union will pay most closing costs associated with a new home equity line of credit, which includes the flood determination, settlement closing costs, recording, and notary services.  Offer excludes certain fees which include, but are not limited to, county release fees for loans being refinanced and prepaid interest due at closing.  For loan amounts of $100,000 closing costs typically range between $800 - $1,500; depending on the location of the property and the amount of the new loan.  Offer is subject to change without notice.  A property appraisal is required and it must be ordered by Educational Systems FCU.  Applicant is responsible for the paying the fee upfront and is non-refundable if the loan does not close.  Appraisal fees average $450 though some are higher due to property location and type.
3 Loans subject to credit qualifications and approval. All applicants must meet membership eligibility requirements. Rates subject to change without notice.  Some restrictions may apply to loan to value financing amount.  Property insurance is required.
4 Consult your tax advisor to determine whether the interest is tax deductible. Some restrictions may apply.
5 Introductory rate of 2.99% Annual Percentage Rate (APR) for the first 12 months with an initial advance of $10,000 required at closing. Rate thereafter is variable rate based on the Wall Street Journal Prime plus/minus a margin, adjusted quarterly. A prime rate of 5.25% (as of 09/01/2019) minus a margin of ½% (index) would result in the current APR of 4.75%. Loan to Value <=75%. The rate cannot increase or decrease more than one (1) percentage point at each adjustment; this limitation does not apply to the adjustment occurring after a discount period expires. The maximum Annual Percentage Rate that can apply is 12.00% or the maximum permitted by law, whichever is less. However, under no circumstances will your Annual Percentage Rate go below 3.50% any time during the term of the plan unless it is during a discount period. Subject to credit qualifications and approval.