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Your home is many things — it's your shelter, a safe place to raise your family, and the backdrop for all of life’s adventures.

But your home can be even more than that. With a home equity loan or a home equity line of credit, your home can also help fund other financial goals. 

Home equity refers to the market value of the home minus the remaining mortgage balance. Whether you’re looking to remodel, finance your child’s education, or access funds for other reasons, home equity can help. Talk to us about whether a home equity loan or a home equity line of credit might be right for you. 

Home equity loan

A home equity loan lets you borrow a lump sum against the value of your home.

The repayment term is usually a fixed period, typically from 5 to 15 years. Usually the payment schedule calls for equal payments that will pay off the entire loan within that time. Home equity loans feature fixed monthly payments at a competitive rate, with low closing costs.1

Good for:

Those who need a set amount of funds for a specific purpose, such as an addition to their home, or to pay off a specific amount of debt

Advantages of a home equity loan:

  • Lock in your interest rate for the life of the loan
  • Spread the cost of your home improvement over time
  • Use leftover funds for debt consolidation, family expenses, and more
 
To check your pending application status, simply log in to your existing application.

Home equity line of credit

A home equity line of credit is a form of revolving credit.

A specific amount of credit is set by taking a percentage of the appraised value of the home and subtracting the balance owed on the existing mortgage. Income, debts, other financial obligations, and credit history are also factors in determining the credit line. Some lenders will charge membership or maintenance and transaction fees every time you draw on the line. Interest is usually variable rather than fixed.

Once approved, you have the flexibility to tap funds whenever you need them, so whether you tackle a full-blown remodel — or just do a few upgrades — you’ll have the funds on hand. 

Good for:

  • Those who need varying amounts of funds for different purposes at different times
  • Those who need to have quick access to their home equity at a later time


Advantages of a home equity line of credit:

  • You can take out small sums periodically, as opposed to one lump sum
  • Interest will only be charged when you deduct the money
  • Zero closing costs2
  • No annual servicing fee


Lines are available for up to $350,0003 depending on your credit and your home’s value. Tapping your line of credit is as easy as writing Equity Checks, using your HELOC debit card for purchases, or transferring funds from your line of credit to another account.

To check your pending application status, simply log in to your existing application.

Still have questions?

Our Mortgage Relationship Managers are here to help you every step of the way. Please call our Home Loan Help Desk at 888-334-5120. For those outside the U.S., call 510-627-5120.

Learn more on our blog


For Home equity lines of credit, the rate is variable and based on the Prime Rate as published in the “Money Rates” section of the Wall Street Journal, plus a margin. The margin is based on loan-to-value and borrower(s) credit score at time of origination. The maximum annual percentage rate in a variable rate plan is 18%.

1 Rate of 4.250% (Annual Percentage Rate (APR) of 4.364% effective as of 3/20/20 and subject to change without notice. 4.364% APR calculated based on a loan amount of $50,000. At a 4.000% rate (4.364% APR), a 15-year home equity loan for $50,000 would have monthly payments of $369.84. Actual rate will be based on the loan-to-value (LTV) ratio and the borrower’s credit score at the time of origination. For home equity loans, rate is fixed for the term of the loan. Home equity loans in TX available up to 80% LTV maximum.
2 If account is closed within three years of opening, early closure fees will be added to the Account Balance in the amount of $500 for credit lines up to $100,000 and $700 for credit lines above $100,000. Early closure fees are not accessed where prohibited by state law or when the account is closed as part of a Credit Union refinance.   
3 Credit limit based on your creditworthiness. Please contact the Credit Union for the minimum and maximum loan amounts for the various Combined Loan-to-Values (CLTVs).
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