Home Equity Line of Credit (HELOC)
PREFERRED HOME EQUITY LINE OF CREDIT (HELOC)
This is a great alternative to a residential mortgage for owner-occupied condominiums and 1-to-4 family houses. It allows you to borrow only the amount of money you need, whenever you need it.
Our Preferred Home Equity Line of Credit is a loan guaranteed by available equity in your home. Home Equity is the value difference between your home's appraised value and any mortgage(s) outstanding on your home.
- The minimum of this loan is $10,000 and the maximum is $250,000, on condition that the combined amount of your first mortgage and Preferred HELOC does not exceed 75% of the appraised value of subject property.
- The Annual Percentage Rate (APR) is set as follows:
- The APR is based upon a margin above the Prime Rate, depending upon your credit history and loan characteristics.
- Your APR will be revised every month with changes in the Prime Rate.
- The Prime Rate is the highest prime rate published in the Money Rate column of the Wall Street Journal.
- During the life of the loan, the maximum APR that can apply is 14.90% and the minimum APR can go as low as 3.25%.
- Term of the loan is 25 years:
- First 10 years are called a Draw Period, when you can access your account through convenient checks (minimum withdrawal of $250).
- Remaining 15 years are the Repayment Period where the amount outstanding at the end of the Draw Period is amortized in equal installment payments over 15 years.
- Monthly payments during the Draw Period are interest only.
The rate you receive will be based on your credit history and other factors. All loans are subject to credit approval and verification. Applicant must be at least 18 years old. Products and rates are subject to change without notice. Products are not available in all states. PSFCU membership required. Other restrictions may apply.
Advantages of having a Preferred Home Equity Line of Credit:
- No fees
- No closing costs*
- Easy access to the credit line through your checks
- Interest rate usually more attractive than rates on your credit cards or personal loans
- Payments required only if you have an outstanding balance
- Possibility of tax deduction (contact your tax advisor to check your eligibility)
Preferred HELOC is a great choice if you need additional cash for:
- home improvement
- second house purchase
- car purchase
- unexpected medical expenses
- debt consolidation
- or you wish to pay off one or more high interest loans and/or credit cards