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Home Equity Loan / HELOC Comparison

Feature Home Equity Loan Home Equity Line of Credit (HELOC)
Funds Distribution Funds disbursed in one lump sum Available funds can be used as needed, but must advance a minimum of $100 ($4,000 in Texas) at a time.
Access to the funds Deposited in your CU account or by check to the member. In person, by phone or in writing, Online Banking and MoneyLine.
Borrowing Limits This loan, plus any other outstanding, liens may not exceed 90% (80% in Texas) of the home’s fair market value. This line of credit, plus any other outstanding liens, may not exceed 90% (80% in Texas) of the home’s fair market value. Additionally, Texas HELOCs are limited to 50% of the home’s appraised value.
Monthly Payment Monthly fixed payment amounts. Monthly variable payment amounts – depends on balance advanced and changes in the APR.
Interest Rates Fixed Rate. Variable rate (Index plus margin = APR) adjustable during its term on the 1st day of each calendar quarter.
Interest Charges Interest accrues on the outstanding loan amount from the day of closing. Interest is charged only on the outstanding balance and accrues from the date of advance.
Tax-deductible interest Interest may be tax deductible. Consult a tax advisor. Interest may be tax-deductible. Consult a tax advisor.
Terms 5, 10 or 15 year terms with a fixed payment amount. 5 year draw period requiring payment of interest only each month and repayment periods of 5, 10 or 15 years.