Mortgage & Home Equity Overview
In the market for a new home or refinancing? At West Virginia Federal Credit Union, we want to be the first one to welcome you into your home. Whether you are looking for your first home, refinancing, or purchasing a vacation getaway, we can help you find the right product. Let us introduce you to our Mortgage Lending Specialists to learn more about our wide variety of innovative loan programs to complement your specific financial needs. We offer several choices depending on your mortgage needs, and our experienced lenders are here to help you get the answers to your Mortgage and home-buying questions. We offer local decisions, fast turnaround time, competitive rates, and personal service, all from a name you can trust. Please contact us today.
West Virginia Federal Credit Union - (NMLS ID #802281)
Gale Harman/ South Charleston Branch - (NMLS ID #1160610)
Andrew Albert/ St. Albans Branch - (NMLS ID #8084798)
Byron (Buddy) Bevins/ South Charleston Branch - (NMLS ID #808797)
Lisa Ratliff/South Charleston Branch - (NMLS ID #808795)
Building dreams. . .One loan at a time!
Mortgage Purchase / Refinance
WVFCU Mortgage Loan Products
Fixed rates up to 15 years in term, cash-out options available.
5 Year ARM's, amortization up to 25 years, purchase or refinance, cash-out options available.
West Virginia Housing Development Fund Mortgage Loan Products - Offered by WVFCU
Fixed rates up to 30 years in terms, purchase or refinance, cash-out options available.
West Virginia Housing Development Fund (WVHDF), offers a program called "Movin' Up" which is available to non-first time homebuyers.
WVHDF offers a program called "First Time Homeownership," which is available to first-time homebuyers who need closing costs/down payment assistance. Income limitations apply. WVHDF Financial Education Videos for more information.
Contact Us for more information.
Stop by one of our convenient locations to speak with a Mortgage Loan Specialist who will help you find the best solution for your needs.
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
Home Equity Loan
Flexible Financial Options
In today's financial environment, it is nice to know you have a powerful tool on your side. Take advantage of the built-in equity in your home to help prepare for life's unexpected expenses and opportunities.
A home equity loan is a great choice if you have a specific need. It is secured by your home and enables you to access a portion of your available equity in the form of a single payout. Both the interest rate and payment will remain the same for the entire loan term. The difference between a Home Equity Line of Credit (HELOC) and a Home Equity Loan is that the loan proceeds are disbursed as a one-time lump sum, and you can't borrow funds on the loan again for the entire term or with no future availability to borrow funds on the loan again for the remaining term.
Getting to Know the Basics
The Rate
Home Equity Loan offers a fixed interest rate, and the payments are a fixed amount. Budgeting is made easier knowing there is a specific payment amount each month. The interest paid is a potential tax deduction, so the benefit is that you are saving on the interest paid. (It is recommended that you seek a tax consultant because every personal situation is different.)
How Do You Qualify?
To qualify, you must have available equity in your home. You must owe less than the value of your home. Currently, we will lend a maximum of 89% of the appraised value minus your mortgage loan balance; however, this is shown as an example and may be subject to change. Your lender also reviews other factors such as monthly income, credit score, employment history, and monthly debts, all of which enter into the credit approval decision.
Potential Loan Amount
For example purposes, let's assume the lender allows a maximum loan amount of 89% of your home's appraisal value and your home appraises at $250,000, if you owe $150,000 on your current mortgage balance you would qualify for up to $72,500 for a loan amount. (250,000 X 89%=222,500-$150,000=$72,500)
Which Option is Right for You?
The chart below helps you compare the benefits of both the Home Equity Loan and the Home Equity Line of Credit. Need further assistance? Call your local West Virginia Federal Credit Union at (304) 744-MYCU (6928) and ask to speak to a Mortgage Loan Specialist; they can help you determine the best option for your financial situation. We will be glad to take an application when you are ready.
| Home Equity Loan | |
|---|---|
| Meet Your Individual Borrowing Needs | - Proceeds may be used for home improvements, to consolidate high-interest loans or credit card debt, or to make a major purchase. - Receive Proceeds in a lump sum. |
| Managing Your Budget | Fixed Monthly Payments - monthly loan payments remain the same for the term of the loan.* |
| Benefits | Loan Proceeds can be used for a variety of needs. |
| Home Equity Line of Credit | |
|---|---|
| Meet Your Individual Borrowing Needs | - Access to the available credit limit during the draw period (5 years) of the HELOC for both immediate and future needs.*** - Flexibility in the way you use the funds - home improvement, education costs, or payoff high rate loans and credit cards. |
| Managing Your Budget | - Flexible payment options during the 5 year draw period - pay the minimum payment due each month or pay more to reduce your outstanding balance. |
| Benefits | - Transfer available HELOC funds to a WVFCU shared draft checking account or share savings account through our secure eBranch online banking. - Line of Credit availbaility increases as the principle balance is reduced during the draw period (5 years). - Convenient courtesy checks are provided for additional access to a HELOC. |
*1st Lien Home Equity Loans are required to escrow taxes and insurance which will increase the monthly payment.
**Consult a Tax Professional about the tax deductibility of interest.
***Home Equity Lines of Credit have a 5 year available draw period with an option to extend the draw period for an additional 5 years. There is a 10 year amortization for repayment after the draw period expires. Minimum monthly payment during the draw period is $150.00. Maximum term including 5 year draw period extension is 240 months. The index: The Wall Street Journal Prime Rate. The margin: The margin is the amount added or subtracted from the index (Wall Street Journal Prime Rate) which determines your rate for the home equity line of credit.
(Your actual rate, payment, and costs could be higher. Get an official estimate before choosing a loan/line product).
Home Equity Line of Credit
A Home Equity Line of Credit (aka HELOC) is secured by your home and can provide you with a revolving credit line, much like a credit card, but typically has a better interest rate. The main difference is that you are borrowing on the built-in equity in your home. This means you may borrow against your home at any time, and you can borrow a little or as much as up to a specific limit. Generally there is a period of time you may draw money out from your HELOC and then there will likely be a repayment period.
Home equity lines are often used for home improvements, which could increase the value of the home, pay off high-interest credit card debt, or make major purchases.
Getting to Know the Basics
Qualifying
To qualify, you must have available equity in your home. The amount you owe on your home must be less than the appraised value. Typically, the maximum amount we may lend is up to 80% of the appraised value minus your mortgage loan balance.
West Virginia Federal Credit Union also reviews other factors such as monthly income, credit score, employment history, and monthly debts, all of which enter into the credit approval decision.
The Index
The Wall Street Journal Prime Rate.
The Margin
The margin is the amount added or subtracted from the index (Wall Street Journal Prime Rate), which determines your rate for the home equity line of credit.
The Limit
The credit limit is determined by West Virginia Federal Credit Union. For example purposes let's assume the lender allows a maximum loan amount of 80% of your home's appraisal value and your home appraises at $250,000, if you owe $150,000.00 on your current mortgage balance you would qualify for a credit line up to $50,000. (250,000 X 80%=200,000-$150,000=$50,000.00).
The Draw Period
This is the period during which you can access your HELOC line. The draw period can vary from 5 to 10 years. Checks are provided for easy accessibility, as well as our Online banking transfer option. Once you start accessing your HELOC you will be provided a monthly statement indicating the required minimum monthly payment. It is highly recommended to pay more than the minimum payment amount to decrease the balance and increase the amount of availability.
Interest
You will be charged interest on any money borrowed against the HELOC. The home equity line of credit features a variable rate and is subject to change on a quarterly basis. We do have the discretionary right to modify your line limit at any time. Members will be notified of such changes to their credit limit.
Which Option is Right for You?
The chart below helps you compare the benefits of both the Home Equity Loan and the Home Equity Line of Credit. Need further assistance? Call your local West Virginia Federal Credit Union at (304) 744-MYCU (6928) and ask to speak to a Mortgage Loan Specialist; they can help you determine the best option for your financial situation. We will be glad to take an application when you are ready.
| Home Equity Loan | |
|---|---|
| Meet Your Individual Borrowing Needs | - Proceeds may be used for home improvements, consolidate high interest loan or credit card debt or to make a major purchase. - Receive Proceeds in a lump sum. |
| Managing Your Budget | Fixed Monthly Payments - monthly loan payments remain the same for the term of the loan.* |
| Benefits | Loan Proceeds can be used for a variety of needs. |
| Home Equity Line of Credit | |
|---|---|
| Meet Your Individual Borrowing Needs | - Access to the available credit limit during the draw period (5 years) of the HELOC for both immediate and future needs.*** - Flexibility in the way you use the funds - home improvement, education costs, or payoff high-rate loans and credit cards. |
| Managing Your Budget | - Flexible payment options during the 5-year draw period - pay the minimum payment due each month or pay more to reduce your outstanding balance. |
| Benefits | - Transfer available HELOC funds to a WVFCU shared draft checking account or share savings account through our secure eBranch online banking. - Line of Credit availability increases as the principal balance is reduced during the draw period (5 years). - Convenient courtesy checks are provided for additional access to a HELOC. |
*1st Lien Home Equity Loans are required to escrow taxes and insurance which will increase the monthly payment.
**Consult a Tax Professional about the tax deductability of interest.
***Home Equity Lines of Credit have a 5 year available draw period with an option to extend the draw period for an additional 5 years. There is a 10 year amortization for repayment after the draw period expires. Minimum monthly payment during the draw period is $150.00. Maximum term including 5 year draw period extension is 240 months. The index: The Wall Street Journal Prime Rate. The margin: The margin is the amount added or subtracted from the index (Wall Street Journal Prime Rate) which determines your rate for the home equity line of credit.
(Your actual rate, payment, and costs could be higher. Get an official estimate before choosing a loan/line product).
West Virginia Federal Credit Union Welcomes You Home...
...to your new house and our community!
Buying a home or refinancing can be one of the most important decisions you make. Finding the right loan and lender is important. Regardless of your level of homebuying experience, rely on our mortgage specialists for the information you need to make informed homebuying and financing decisions.
Let us be the ones to help guide you through this process. For rate inquiries, product information, or applying for a Mortgage, you may contact:
Get Pre-Qualified at (304) 744-MYCU (6928)
Make Your Move...Start Now!
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.