Home Equity Line of Credit (HELOC)

Whether you want to make improvements on your home or pay down high-interest debt, LGFCU's Home Equity Line of Credit (HELOC) can meet those needs.

Home Equity options

A HELOC is a secured open-end loan you can use again and again. With this line of credit, you borrow against the value your home has built up over several years. LGFCU offers two Home Equity options:

Home Equity Line of Credit - LGFCU First Mortgage offers the lowest rate and is for members who have an LGFCU mortgage.
Home Equity Line of Credit - First Mortgage Other Lender has a slightly higher rate and is for members who have a mortgage with another lender.

HELOC features

Borrow up to 90% of the appraised value of your home, less the amount owed on your present mortgage
Borrow any amount up to your credit line at any time within 15 years, subject to terms of the account agreement. However, your repayment period would continue as originally scheduled until your remaining balance is paid-in-full.
Minimum payment based on the interest rate, loan balance, and payment frequency
No origination fees or discount points required
Can serve as overdraft protection for your LGFCU Checking Account
Advances may be made online in MemberConnect, via 24-hour Voice Response, at your local branch, or by contacting the Contact Center.
Get a lower rate when you opt to use Payroll Deduction or Funds Transfer for repayment.

Eligible property

Primary Residence

Property must be in North Carolina or in a county in South Carolina, Virginia or Georgia that adjoins North Carolina.
Maximum combined loan amount at a 90% loan-to-value is $400,000 for properties not located in a subdivision and $500,000 for properties that are.

Processing fees

Fees may range from $300 to $750. Processing fees on loans secured by property in Virginia and South Carolina are higher and not all fees can be waived. Appraisal fees vary by region. A loan officer can assist you in determining the expense in your area.

Home Equity rate

The interest rate on our Home Equity Line of Credit is expressed as an annual percentage rate (APR). It is adjustable and subject to change quarterly. The APR is based on the 26-week Treasury Bill rate set on or after the 15th day of the second month of the previous calendar quarter. The rate may not change more than 1/2 percentage point each quarter. The maximum interest rate or ceiling on the loan will be an APR equal to the beginning rate plus 5 percentage points or 12.75 percent APR, whichever is higher, but never more than 18 percent APR.

Home Equity Line of Credit Modification Program

Members that have an existing Home Equity Line of Credit with the Credit Union may be able to lower their interest rate to the current rate for new home equity lines of credit. In order to qualify for the interest rate reduction, your first mortgage must be with the Credit Union or your home equity line of credit must be the only mortgage on your property. To request that the interest rate on your current loan be modified, complete the Home Equity Line of Credit Modification Form and return it to your local branch for processing. There is no fee to modify your HELOC.

Payment schedule

The payment schedule is based on the minimum per $1,000 of the highest outstanding balance rounded to the next highest increment.

Annual Percentage Rate	Semimonthly/ Biweekly per $1000	Monthly per $1000
Up to 12%	$6.00	$12.00
12.25% to 15.00%	$7.00	$14.00
15.25% and higher	$8.00	$16.00

Tax advantages

Most interest paid on first and second mortgages is deductible on itemized returns. The Home Equity Line of Credit is a second mortgage; therefore, you could save substantially by borrowing against your home instead of using other types of credit. Should any portion of a credit extension made to you under a Home Equity Line of Credit be greater than the fair market value of the dwelling securing it, the interest on that portion of the credit extension will not be tax deductible for Federal income tax purposes. In any case, you should consult your tax advisor regarding the tax implications of a Home Equity Line of Credit.