Telco Credit Union is a full service, not-for-profit financial institution serving over 10,000 members. We serve eastern North Carolina, including Tarboro, Rocky Mount, and Greenville, NC. Profits are returned to our members, which are reflected in our ability to pay higher dividends on savings, offer lower interest rates on loans, and provide expanded products and services at less cost. 

One of our many services and products that we offer at Telco Credit Union is home equity loans. We offer two types: a fixed rate home equity and a variable rate home equity. For the fixed rate home equity, we offer credit lines from $10,000 to $100,000, along with no origination fees. You can use this type of home equity loan to consolidate your loans, and they may be tax deductible. For our variable rate home equity loans, we offer rates as low as 5%, and credit lines from $5,000 to $250,000. You may use these to consolidate loans as well, and they may also be tax deductible. You must be a Telco member to apply for one of our home equity loans. 

So, what exactly is a home equity loan? A home equity loan is a type of loan that is secured by your home. You repay the loan with equal monthly payments over a fixed term, much like your original home mortgage. If you don’t repay the loan as you agreed, your lender can foreclose on your home. Home equity financing can be set up as either a loan or a line of credit. With a home equity loan, the lender offers the total loan amount upfront. On the other hand, a home equity credit line provides a source of funds that you can draw on as you need.

If you’re considering a home equity loan or credit line, make sure to look around and compare offers by banks, credit unions, savings and loans, and mortgage companies. You can get a better deal this way. Keep in mind that mortgage brokers don’t lend money, but they help arrange loans. Also remember that your home secures the amount that you borrow. So, if you don’t pay your debt, you may be forced to sell your home to satisfy that debt. 

The amount you can borrow depends on your income, credit history, and the market value of your home. Typically, the amount you can borrow is limited to around 85% of the equity in your home. When you interview lenders, ask all lenders to explain the loan plans that are available to you. Ask questions if you don’t understand something, because confusing terms and conditions could cost you more. Pay close attention to the annual percentage rate (APR) of a home equity loan, along with fees like the application or loan processing fee, origination or underwriting fee, lender or funding fee, appraisal fee, document preparation and recording fees, and broker fees. If points or other fees are added to your loan, you’ll pay more to finance them.

Always ask for your credit score! Feel free to negotiate with more than one lender. Don’t be afraid to make lenders and brokers compete for your business – you’ll get a better deal this way. Before you sign for a home equity loan, make sure to read the loan closing papers carefully. Don’t sign if you see anything that makes you feel suspicious. You can negotiate or walk away. 

At Telco Credit Union, we offer competitive home equity loans – both fixed and variable rate home equities. If you have questions about these types of loans or are ready to get started with us, contact us today! We’re here to help with all your financial needs.

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