Preferred Home Equity Line of Credit

Our Preferred Home Equity Line of Credit is a loan guaranteed by available equity in your home. Home Equity is the value difference between your home's appraised value and any mortgage(s) outstanding on your home.

1. The minimum of this loan is $10,000 and the maximum is $250,000, on condition that the combined amount of your first mortgage and Preferred HELOC does not exceed 75% of the appraised value of subject property.
2. The Annual Percentage Rate (APR) is set as follows:
   1. The APR is based on a margin above the Prime Rate, depending upon your credit history and loan characteristics.
   2. Your APR will be revised every month with changes in the Prime Rate.
   3. The Prime Rate is the highest prime rate published in the Money Rate column of the Wall Street Journal.
   4. During the life of the loan, the maximum APR that can apply is 14.90% and the minimum APR can go as low as 3.25%.
3. Term of the loan is 25 years:
   1. First 10 years are called a Draw Period, when you can access your account through convenient checks (minimum withdrawal of $250).
   2. Remaining 15 years are the Repayment Period where the amount outstanding at the end of the Draw Period is amortized in equal installment payments over 15 years.
4. Monthly payments during the Draw Period are interest only.

Benefits

• No fees
• No closing costs*
• Easy access to the credit line through your checks
• Interest rate usually more attractive than rates on your credit cards or personal loans
• Payments required only if you have an outstanding balance
• Possibility of tax deduction (contact your tax advisor to check your eligibility)

*New York residents will have to pay applicable mortgage taxes, which may be paid with an advance on your line of credit. If credit line is closed and paid off within first three (3) years since the opening date, you will be required to reimburse closing fees paid by the Credit Union on your behalf.

How to Apply

To apply please visit one of our branch locations, contact our Member Services Center at 1.855.PSFCU.4U (1.855.773.2848), or APPLY ONLINE!

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