Understanding Home Equity Lines of Credit
Qualifying for a HELOC:
You must have available equity in your home, whether it is paid off or you currently owe less than it is currently worth. Members 1st will allow you to borrow up to 80% of the value of your home minus the amount you owe. To be able to qualify, your credit history, work, and other personal information will be taken into account.
Members 1st Credit Union offers both a fixed rate term and a variable rate term. The fixed rate term supplies you with a 5-year draw period with a 10-year repayment period following. The variable rate term supplies you with a 10-year draw period with a 15-year repayment period following.
The index used:
For the variable rate equity lines, Members 1st will start with an independent index, which is the monthly average of the Six Month Treasury Bill Rate. We will use the most recent index value available to us as of 10 days before the date of any annual percentage rate adjustment.
The limit of your HELOC:
Members 1st will allow you to borrow up to 80% of the value of your home minus the amount you owe.
The draw period of your Members 1st HELOC:
The draw period is the time you have to take funds from your HELOC to complete your home improvement projects or whatever you would like to use the funds for. The draw period for our fixed rate term is 5 years. The draw period for our variable rate term is 10 years. To extend the draw period of your existing Members 1st HELOC, please call (530) 222-6060.
The interest being charged:
Any money that you borrow against your credit line will be charged interest. Members 1st Credit Union has two options when it comes to paying back your HELOC. You have the option of choosing a fixed rate term or a variable rate term. For rate details, please see our current rate sheet.
The repayment period of your HELOC:
The repayment period is the duration of time you have to repay the balance of your line of credit following your draw period. During this time, you may only make payments toward your balance and you may not draw on your line of credit. The repayment period for variable rates is 15 years following your 10-year draw period. The repayment period for fixed rates is 10 years following your 5-year draw period.