Home Equity Loans - First Energy Family Credit Union

Major Features

Fixed-Rate Home Equity Loan

Variable Equity Line

Type of Rate

Fixed for life of the loan.

Variable as low as Prime minus 1 1/2% as listed in the Wall Street Journal. The annual percentage rate can change quarterly on the first day of February, May, August and November. The rate cannot increase or decrease more than 2 percentage points in any one-year period. The maximum annual percentage rate that can apply is 18% and the lowest the rate will go is 4.00% (floor rate).

Maximum Loan
Percentage of home value

80%

80%

Minimum Loan or Line

$5,000

$20,000 for no-fee special

$5,000 for initial line and
$1,000 for each advance

$20,000 for no-fee special

Available Terms Balance is Maintained

5 and 10 year terms

5 year draw period /
20 year repayment on total loan.

Annual Fees

None

None

Closing Costs

None*

None*

Application Fees

None

None

Prepayment Penalties

None*

None*

Tax Advantage

See Tax Advisor

See Tax Advisor

Be sure to complete Comparison Worksheet #2 to help compare the costs of each H.E. Loan program you are considering.

	Free Loan Protection Insurance Insurance that covers the insurable balance of your loan up to $25,000.00 per loan for death before age 70 or total and permanent disability before age 60.
	NO FEE SPECIAL*
	NO APPLICATION FEES
	Choose from 3 terms – 5 years, 10 years and 20 years
	You're dealing with people who are working in your best interest.
	Personal Care You will receive the personalized service you are accustomed to.
	We have competitive interest rates. That’s the benefit of being a member/owner at your credit union. Profits are returned to you in the form of better deals on loans!
	Honest loan rates There are no hidden fees or annual dues with your credit union loan. The only fees you encounter are the fees we are charged. We disclose these fees to you up front, at the beginning of the loan.
	Advances Convenient and easy advances on your variable line of credit

	Look for the plan that best meets your particular needs.
	Examine the terms and conditions of various plans, including the annual percentage rate (APR) and the costs you’ll pay to establish the plan.
	The disclosed APR will not reflect the closing costs and other fees and charges, so you’ll need to compare these costs.
	Comparison Worksheet #1
	Comparison Worksheet #2

Example:		Worksheet:
Appraisal of home	$100,000.00	My Home is worth:	$ ________
Percentage80%	$ x 80%	Percentage	X ________%
Percentage of appraised value	$ 80,000.00	Percentage of Appraised Value	$ ________
Less existing mortgage	$ 40,000.00	Less my existing mortgage	$ ________
Potential credit line	$ 40,000.00	My Potential credit line	$ ________

Are there any fees?
*For a limited time, FEFCU will pay all processing fees up to $420.00. Processing fees include appraisal, flood determination, title search, attorney and lien search fees. $420.00 based on primary residence located in Summit County. Additional fees may apply based on the county in which the primary residence is located. To qualify for the limited time, “No Fee” special you must draw $20,000.00 for your first advance for 24 months. Actual rates, fees, and terms are based on those offered as of the date of application and are subject to change without notice. If you pay-off the loan for any reason within 24 months, a $420 early termination charge will apply to reimburse processing fees.

What if I don’t need $20,000, required for the no fee special?
You will be responsible for the processing fees. The only fees incurred are those charged to the credit union and passed through to the loan applicant. These are the appraisal, flood determination, title search, attorney and lien search fees and will vary according to the county where your home is located. There is no application fee or early termination fee. FEFCU has very low fees, please use Comparison Worksheet #2

Are there Annual Fees?
No.

I just had my house appraised; do I need to pay for another appraisal?
Possibly – we will review old appraisal to determine if it is appropriate.

Can I borrow on land or a rental property?
No – must be the primary residence in the State of Ohio.

How long does the loan process take?
From start to finish usually takes 3-5 weeks

How do draws work?
Call your credit union and simply request a check and state if you would like the check to be mailed or available for pick up. Usually done within 24 hours. There are no check books or share draft accounts available.

*Major Features*	*Fixed-Rate Home Equity Loan*	*Variable Equity Line*
Type of Rate	Fixed for life of the loan.	Variable as low as Prime minus 1 1/2% as listed in the Wall Street Journal. The annual percentage rate can change quarterly on the first day of February, May, August and November. The rate cannot increase or decrease more than 2 percentage points in any one-year period. The maximum annual percentage rate that can apply is 18% and the lowest the rate will go is 4.00% (floor rate).
Maximum Loan Percentage of home value	80%	80%
Minimum Loan or Line	$5,000 $20,000 for no-fee special	$5,000 for initial line and $1,000 for each advance $20,000 for no-fee special
Available Terms Balance is Maintained	5 and 10 year terms	5 year draw period / 20 year repayment on total loan.
Annual Fees	None	None
Closing Costs	None*	None*
Application Fees	None	None
Prepayment Penalties	None*	None*
Tax Advantage	See Tax Advisor	See Tax Advisor