To begin with, both lines offer—on an ongoing, no-strings-attached basis—fee-free*** opening costs that some big banks occasionally advertise as a special, limited-time offer. This includes:
In short, when big banks brag about “no origination fees and no usage fees for promotional periods,” keep in mind that CEFCU has never imposed such fees to begin with! And we have continually offered these values along with some of the lowest variable rates in the nation.
Which Line is Right for You?
Both of our Home Equity Lines are designed to help you realize your dreams more affordably.
Our Traditional Home Equity Line lets you pay off your loan as you go, with a steady payment based on 1.2% of your outstanding balance (or $100, whichever is greater). At the end of the loan term, you’re “home free!”
While both our equity lines feature the money-saving advantages you’ve come to expect from CEFCU, our unique Interest Only Line adds new financial possibilities. Our Interest Only Home Equity Line lets you draw on your equity for 10 years, while your payments are based ONLY on the interest accrued at a variable rate of .25% BELOW the Prime Rate! The result is a monthly payment that is a fraction of any traditional credit line. At the end of 10 years, the amount that you borrowed is due in full. You can pay if off or refinance it with another type of loan, making an Interest Only Line of Credit an ideal tool if you plan to sell your home or “cash in” your stocks, bonds or IRAs in the next 10 years.
Want to know more?
Our expert loan advisors will be glad to help you choose the plan that’s right for your needs — right now and for years to come. Apply online today by clicking on the Mortgage Center link below. Prefer not to apply online? You may also complete a Traditional HELOC or 10-Year Interest Only HELOC Application and mail or fax it to the office location most convenient to you.
As always, you’ve got the uncommon advantage at CEFCU! It’s a smarter choice to borrow from an institution you can always trust! And that’s a nice feeling to come home to.
* Please see your tax consultant about the deductibility of interest in your specific situation.
** Exceptions may apply. Higher amounts may be requested.
*** Certain restrictions may apply. $1,000 processing fee waived on new money loans or refinanced loans from another financial institution. Note: Rates, terms and conditions are subject to change. Maximum Annual Percentage Rate (APR) on 10-Year Interest Only Lines is 18% and 14% on Traditional Lines. Minimum Annual Percentage Rate (APR) on 10-Year Interest Only Lines is 3.75%. All loans subject to credit approval. Special circumstance loans may take longer than 30 days to fund. See disclosures for complete terms and conditions. Caltech Employees Federal Credit Union is an Equal Housing Lender and Equal Opportunity Lender.