What is a HELOC?
HELOC PROMOTION
*MinimalClosing Costs!
A Home Equity Line of Credit (HELOC) from Workmen’s Circle Credit Union (WCCU) allows the member to access the equity in their home as collateral for the loan. This is a variable rate mortgage that adjusts annually with a loan life of fifteen (15) years. The interest rate is equal to the Prime Rate in the Wall Street Journal, with no additional points added. The maximum Line of Credit (LOC) is 75% of the value of your home less your existing mortgage. A Home Equity can be a first or second mortgage.
A HELOC can be used for home renovations, purchasing a vehicle, consolidating debt, vacation, furniture, investment, or practically any prudent purpose. The collateral is your home.
Applying for a HELOC at WCCU is as easy as completing a two-page loan application and submitting it with your last completed tax return. In some cases, WCCU may be able to use the tax valuation to value your home. If an appraisal is required, the member is responsible for the cost of the appraisal. The closing costs are minimal. In some cases, the closing costs (excluding the appraisal) are provided at no cost to the member. Here is a link to the HELOC APPLICATION FORM & DISCLOSURES.
Example:
| Home Value: | Loan to Value | Lending Limit | 1st Mortgage (if applicable) | Available Funds | |
| $200,000.00 | X | 75% = | $150,000.00 | - $100,000.00 | = $50,000.00 |
FREQUENTLY ASKED QUESTIONS
-
+ How do I calculate the available HELOC with WCCU?
An example for calculating the available LOC: let’s assume your home has a value of $200,000. The acceptable LTV for WCCU is 75% so the maximum allowed for total mortgages is $150,000 ($200,000 * 75%). Let’s assume there is a 1st mortgage of $100,000. Then WCCU can issue a HELOC amount up to $50,000 ($150,000 less 1st mortgage ($100,000) = $50,000).
-
+ What will be my payment amount?
WCCU’s HELOC has a 15-year life and all funds are amortized to pay out by fifteen (15) years after the closing date. The member may elect to have a shorter amortization period. There are no prepayment penalties. A member may pay off the HELOC but keep the HELOC open for future HELOC advances.
-
+ What will my interest rate be and will it change?
The index on the HELOC is prime plus zero (0) based on the prime rate in the Wall Street Journal. Since this is a variable rate mortgage, the interest rate may go up or down two (2) percentage points each year on July 1st depending on the index as of June 1st. The interest rate floor is zero (0%) with a ceiling rate of eighteen (18%) percent.
-
+ How do I access funds from the HELOC?
Simply call our office at (912) 356-9225 and speak to one of our loan specialists and they will prepare your HELOC advance. They will be able to provide the amount available for the loan advance, the monthly loan payment and answer questions you have about the HELOC program. The new loan balance must be repaid by the original maturity date of the HELOC, which is fifteen (15) years from the closing date. Usually, your monthly payment will increase after a loan advance and are due on the 28th of the month.
-
+ What is the draw period?
The draw period is the fixed length of time during which you can access funds from your home equity line of credit. It runs five (5) years from the date your loan closes.
What Makes Us Different?
Applying for a HELOC at WCCU is as easy as completing a two-page loan application and submitting it with your last completed tax return. In some cases, WCCU may be able to use the tax valuation to value your home. If an appraisal is required, the member is responsible for the cost of the appraisal. The closing costs are minimal. In some cases, the closing costs (excluding the appraisal) are provided at no cost to the member. To qualify for the WCCU paid closing costs option, the HELOC must have an outstanding balance for twelve (12) months and it must be for a home currently owned by the member (not for purchase).
Once WCCU receives the completed application and proof of income, approval can be obtained contingent on the value of the home. If the tax valuation is used for appraisal, an inspection by a WCCU employee will be required. WCCU will order a title search and schedule a closing. The timeframe is normally 4 – 6 weeks.
Workmen’s Circle Credit Union serves mostly individuals/businesses that live, work or operate in Chatham County. The approval decision on your Home Equity Line of Credit will be made by a loan officer or the Loan Committee. The HELOC will be closed at WCCU’s office located at 527 Stephenson Avenue. Your loan processor will be your loan closer.
Useful Links:
Or Call Us At: (912) 356-9225