Home Equity Line of Credit
Home Equity Line of Credit features
- Flexible open-end loan with an approved credit limit
- Variable rate based on the prime rate
- Rates as low as prime minus 1.00%
- Credit limits from $10,000 up to 100% of your available equity
- Funds available when you need them
- Helpful for recurring or ongoing expenses, such as college tuition or home improvements
- Equity Line checks you can write to access your loan funds
- Useful for VACU checking overdraft
protection, which can be set up
upon request
Payment
options
You now have two ways to repay your Home Equity
Line of Credit.
Traditional monthly
payment option
Your payment will vary based on the balance you owe,
rather than the interest rate. Your minimum monthly payment is
1.5% of the balance
you owe.
Interest-only
payment option
With interest-only payments
for the first ten years, this payment option gives you the flexibility
of having access to cash while substantially
reducing your monthly payments. Interest accrues only on the amount
you actually use. Your minimum monthly payment consists of the
accrued interest on the outstanding balance, but does not reduce
your outstanding principal balance. This option is ideal for short-term
uses such as vacations and educational expenses.
Equity Line payment examples
| Balance |
Minimum Monthly Payment* |
Interest-Only
Payment Option** |
| $10,000 |
$150.00 |
$78.56 |
| $20,000 |
$300.00 |
$157.12 |
| $30,000 |
$525.00 |
$235.68 |
|
*The minimum monthly payment is 1.5% of the unpaid balance or $50, whichever
is greater (please see additional information).
It’s a good idea to pay more than the minimum whenever possible. If
you pay only the minimum payment over the life of your loan, you
could have a sizable loan balance (balloon payment) due in full
at the end of
the term.
**The APR used for the payment example
above is 9.25%. During the draw period, your minimum monthly
payment will equal the finance charges that accrued on the outstanding
balance
during
the preceding month, plus any amounts past due or exceeding your
credit limit, along with any other charges due. By paying only
the interest, you will have a sizable loan balance (balloon payment)
due in
full at
the end of the repayment period.
It’s easy to apply
Apply
online or
by by
phone 24
hours a day.
Please contact us if you have questions or if we can help you in any way. |
