Home Equity Line Of Credit

The advantage of a Line of Credit is convenience. You control when you use the money. There are no charges on limits not in use and you are under no obligation to borrow. A HELOC is a good source of funds for recurring expenses such as tuition. You might not need the money today but it’s there when you do. 

1 Available or lendable equity is typically defined by the LTV (loan-to-value). Lendable equity is determined by subtracting your first mortgage balance from the property's established market value. We use 2 ways to establish market value. 1)  We employ the services of an automated valuation system (AVM) where we supply certain information about your property to a third party data system and in turn we receive a perceived value based upon numerous characteristics. 2) The second method used to determine value is obtaining a certified appraisal as described in the following note. There may be circumstances where a certified appraisal is required in addition to the AVM.

2 If the loan amount is greater than $100,000 or outside of Cumberland and its contiguous counties an appraisal performed by a NC State certified appraiser must be performed. You will be responsible for the cost associated with the appraisal which is typically $450. The appraisal fee must be paid prior to the credit union ordering the service and is non-refundable once the appraisal is completed. There are circumstances that may require a certified appraisal on loans less than $100,000. Please speak with one of our mortgage loan officers for complete details. 

3 Prime rate as advertised in the Wall Street Journal on the last business day of a calendar quarter. This is the index. Your rate is subject to change quarterly based on the prime on the last business day of the previous quarter. For Prime Rate click here.

4 Consult your tax advisor.