Home Equity Line of Credit (HELOC)

Home Equity Line of Credit

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:

Please contact an MVFCU loan officer for more information.

NMLS#418470

» Download Printable PDF Application «

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 «

Fixed Interest Rate

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 «

» Download Printable PDF Application «