Access the equity in your home
With a second mortgage, you can take advantage of the equity in your home to pay for a large, one-time expense such as a home improvement project or debt consolidation.1 The interest rate is fixed, so your monthly payment remains consistent throughout the life of the loan. Our second mortgage also offers:
- No closing costs2
- Closing within three weeks
- Financing options up to 90% of your home's appraised value
- Flexible repayment terms: 5, 10 or 15 years
- Possible tax benefits3
Estimate your equity
The first step is to calculate your home’s equity through a real estate site such as Zillow.com 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 at any branch location.
1 Loans subject to credit qualifications and approval. All applicants must meet membership eligibility requirements. Rates subject to change without notice. To qualify, members must have equity in their home and must borrow at least $10,000. Property insurance is required.
2 The second mortgage 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. Educational Systems FCU will pay most closing costs associated with a new second mortgage 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. 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. 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 Consult your tax advisor to determine whether the interest is tax deductible. Some restrictions may apply.