HOME EQUITY LOANS

We offer a variable-rate line of credit loan for members who want to borrow against the equity in their home. With our variable rate HELOC loan, qualified members can be approved for a credit line up to 80% of the equity in their home. You can receive advances against your credit line at any time. You can pay the total balance in full or in part or make higher than required payments at any time without penalty. As you make payments that reduce your balance, that amount becomes available to be borrowed again anytime you need it. The minimum advance is $500. You only pay interest on the balance you've actually borrowed, not the total amount of available credit. As you take an advance, your payment may be increased so that the entire balance will be repaid in 15 years.

The variable interest rate is adjusted on a semi-annual basis and is equal to the Prime Rate as published in the Money Rates column of The Wall Street Journal on the next to last business day of June and December plus .50%. Rate changes are effective on the first business day of July and January, respectively. If you choose to make automatic payments, we'll reduce your interest rate by .50%. There's no limit to the amount by which the variable rate can change in any one year period or over the life of the loan. The maximum annual percentage rate is set by the National Credit Union Administration (currently 18%). As your interest rate is adjusted, your payment will be changed as well.

On all home equity loans, the credit union will only accept a first or second deed of trust in the full amount of the credit line and the property must be your primary residence located in Maryland, Delaware, Pennsylvania, Virginia, West Virginia or the District of Columbia. You can borrow money for any worthwhile purpose and the interest you pay may be income tax deductible (consult your tax advisor for details). An application fee of $300 must be paid in full at the time of application. This fee will be applied to the closing costs. You must pay all loan processing and closing costs in full at the time of settlement or they can be included in the proceeds of the loan. Processing and closing costs to be paid by the member include: title search; credit report; flood zone determination; appraisal; pest inspection (if required); location survey (if required); and settlement costs.