The amount of your Home Equity Line of Credit (HELOC) is based on the value of your home. A MVFCU HELOC has the following criteria:
Owner occupied single family or duplex residential properties are eligible for the Home Equity Line program.
Your home must be 100 percent complete in order to qualify for a Home Equity Line of Credit.
Home Equity Lines are available for as little as $10,000.00 or up to $500,000.00 of the qualifying equity in your primary residence. The maximum loan amount available for a first lien position is $500,000.00 not to exceed 80 percent of the value and up to $300,000.00 for a second lien position, not to exceed 75 percent of the value.
This loan program has a variable interest rate which can be adjusted monthly. Ask a representative for details.
There is no annual fee and no minimum draw amount; fixed rate* conversions are also available.
Please contact an MVFCU loan officer for more information.
How to Estimate the Loan Amount you can Borrow
First – Determine the Value of your Home
For a rough estimate you may use the borough/municipality's assessed value for your home. A fee appraisal may be necessary.
Next – Determine the Type of HELOC for which you can Apply
If you own your home outright, apply for a first deed of trust HELOC. If you already have a mortgage on your home, apply for a second deed of trust HELOC.
Finally – Calculate the Available Equity you have in the Home
Complete the correct equation based on the HELOC type you qualify for:
First Deed of Trust HELOC:
Value of Home x 80% = Usable Equity
Second Deed of Trust HELOC:
(Value of Home x 75%) - Current Mortgage Balance = Usable Equity
Your result – Usable Equity – this is your estimate of the maximum line of credit you may apply for based upon the criteria above. MVFCU's calculation may differ from your estimate.» top «
Once a year and at any time during the year, the Home Equity Line of Credit (HELOC) Loan allows you to convert all or a portion of the outstanding balance to a fixed interest rate (the minimum conversion amount is $10,000.00, with a 15-year repayment term). There is a maximum of two (2) fixed rate conversions at any given time for the HELOC Loan. A first deed of trust fixed rate conversion will be the prevailing "Prime Rate" plus a margin of 0.75 percent at the time the conversion is requested. A second deed of trust fixed rate conversion will be at the prevailing "Prime Rate" plus a margin of 1.25 percent at the time the conversion is requested.
Fixed rate conversions have a minimum interest rate of 5.75 percent for a first deed of trust and 6.25 percent for a second deed of trust; with a maximum interest rate of 15 percent. Fixed rate conversions must be requested in writing at the time of conversion in person or by mail. HELOC fixed rate option forms will be provided to you upon request for a fee of $50.00. » top «
- All rates and terms are subject to change without notice.
- Property must be located in the State of Alaska or Hawaii.
- The primary borrower must be an MVFCU member or able to become an MVFCU member prior to closing of the loan.
- The property must be either a primary residence or a second home.