October 2019 – Benchmark Federal Credit Union has just announced our new Ultimate Home Equity Line of Credit (HELOC) products. The new Ultimate HELOCs feature an Interest Only or Principal & Interest payment options. The Interest-Only HELOC requires that borrowers make monthly interest payments and has a 5-year draw period, which then converts to a 15-year principal and interest payment. The Principal and Interest HELOC requires that borrowers make monthly principal and interest payments and has a 10-year draw period, which then converts to a 15-year principal and interest payment. Both Ultimate HELOCs offer a special 1.99% APR* Introductory rate that is valid for the first 6 months then the rate will convert to a rate according to the credit score at the time of application – as low as Wall Street Journal Prime minus .51% for 80% LTV* and Wall Street Journal Prime minus .26% for 81 – 90% LTV*; with a floor rate of 3.99% APR*.
A HELOC enables you to borrow against the available equity in your home. This is your home’s value minus any outstanding liens, such as your mortgage. Like a credit card or revolving line of credit, a HELOC allows you to borrow as often and as much as you want up to your maximum credit limit. It’s an ideal way to pay for expenses that you incur over a length of time.
HELOCs provide money for nearly any need
- Home improvement or remodel projects
- Seasonal repairs
- Paying down high-interest debt
- Educational expenses/tuition payments
- Major life events
- Medical expenses
- Emergency expenses
- Big-ticket purchases
- Dream vacations
- And, much more
Borrow with an Ultimate Benchmark HELOC
As we’ve shown above, a Benchmark HELOC is an affordable way to borrow money for just about any need. Depending on the equity you have built in your home, you may be eligible to borrow at a lower rate than other types of loans. Benchmark Federal Credit Union allows eligible members to borrow up to 90% of the appraised value of their homes, less any liens, up to $250,000. Depending on your home’s equity, the interest rate can be significantly less than personal loans, credit cards, and other loans. HELOCs can offer great flexibility when borrowing as well. They come in handy when planning an expensive home renovation or making costly tuition payments, among many other things. Best of all, borrowers will benefit from local loan decision-making and processing; as well as attentive, friendly service from start to finish.
Access Ultimate HELOC funds quickly and easily
With an Ultimate HELOC, funds are available during the draw period as you need them and according to the credit limit set by Benchmark. No need to borrow a large lump sum and worry about budgeting it yourself over time or applying for new loans all the time. Just draw against the funds available on your line as needs arise. Checks are provided for easy anytime access to your credit line, or you can access your line via home banking by making a transfer to a Benchmark Checking Account. In addition to making your required interest payments during the draw period, you can also pay down the principal if you’d like, and then draw it down again as needed.
Apply for an Ultimate HELOC Today
Benchmark’s Ultimate HELOCs are a good way to enjoy more flexibility and the lowest possible monthly payments, so act today to take advantage of the equity in your home. Apply for an Ultimate HELOC or read more HELOC blogs online.
Keep in mind that a HELOC has a variable interest rate, which means that after the introductory rate period, the rate will fluctuate based on the Wall Street Journal Prime rate. While the Federal Tax Cuts and Job Act of 2017 changed the interest deduction laws for Home Equity Loans, it may still be deductible if the money is spent on improvements that raise property value, such as renovating existing rooms or adding usable space, so be sure to check with your Tax Advisor. Under the new law, for example, interest used to pay personal living expenses, such as credit card debt or buying a large TV is not deductible. Learn more about the laws regarding deducting Home Equity Loan interest on the IRS website.
Be sure you can afford your HELOC payments when applying for a loan because your home is used as collateral and failure to pay could potentially result in the loss of your home.
*APR = Annual Percentage Rate. Rates are subject to change and are based on the creditworthiness of an individual. 1.99% APR is an Introductory Rate & good for 6 months. LTV = Loan-to-Value (mortgage divided by property value)
There is an early termination fee if the loan is closed in the first twelve months.