Sometimes, emergencies arise, and other times you have big plans but not the big money needed to see them through. When you really need some extra money to cover those expenses, the equity in your home might be able to help.
Home Equity Line of Credit
A home equity line of credit (HELOC)1 is a flexible resource. It’s a line of credit, meaning once you are approved, you can use it when and how you see fit. You can use it and pay it back as many times as you need, and you only pay interest on the money you’ve borrowed, not your entire credit limit.
People use home equity lines of credit to finance all kinds of things, but typically, they are used to make renovations or repairs to your home or to finance big purchases like a new car or college. Because the interest rate on a home equity line of credit is variable (meaning it can change and probably will over time), call our 24/7 loan center at 1.844.652.9916 or visit a branch to speak with one of our professionals about your plans so you know what to expect.
Home Equity Loans
A home equity loan allows you to borrow against the equity you have built in your home. The difference between a home equity loan and line of credit is that a home equity loan establishes a fixed term and rate right from the start. So, if you have identified how you want to use the equity, then a home equity loan might be right for you.
1Home equity line of credit rates are based on loan-to-value and credit worthiness. After the introductory fixed-rate period, the APR (Annual Percentage Rate) will vary based on the prime rate plus a margin ranging from 0% to 2.50%. As of Jan, 1, 2021, the prime rate was 3.25%. Current variable rates range from 3.25% APR to 5.75% APR. The amount of the margin will vary based on several factors, including your credit history and loan to value ratio, and can range from prime plus 0% to prime plus 2.50%. Maximum lifetime rate on Home Equity Line of Credit is 15.00% APR. Ask us for the current index value, margin, and annual percentage rate. The closing costs will be waived with a minimum advance at closing of $10,000. (The $10,000 must be new money.) Depending on the credit limit, closing costs, and other fees are estimated to be between $300 and $700. If Home Equity Line of Credit falls below $9,000 in the first six (6) months, you will have to reimburse the amount of the closing cost paid on your behalf by the credit union. You must carry insurance on property that secures this plan.
To qualify for one of Avadian's introductory offers, any HELOC requests must be secured by a property that has not been currently or previously used as security by any of the current owners at Avadian. All rates and offers are subject to change without notice and cannot be combined with other special promotions.