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Fixed Rate • Line of Credit
Eastern Michigan University Credit Union offers home equity loans for every financial goal and dream. Whether you envision yourself free of high-rate credit card debt, able to send yourself or a loved one to college, renovating your home so as to make it the home of your dreams or taking a much deserved luxury vacation, EMU Credit Union can help make it happen. We've designed these programs to provide the highest level of service to our valued members and to include great features.
Features of *ALL* EMU Home Equity Loans
- High Loan Amounts
Most applicants will be able to borrow up to 90% of the market value of their home; all others will be able to borrow up to 80% (the amount you may borrow will be impacted by your credit score and will be reduced by any other liens outstanding).
- Tax Deductible
The interest you pay under either plan may be tax deductible (consult a tax advisor for more information).
- Little or NO Closing Costs
These programs have been designed to minimize or even eliminate the fees that have to be paid by our valued members!
- "Relationship" Discounts
If you participate in (3) or more qualifying services, we'll reward you by reducing your interest rate. We appreciate your patronage and look forward to serving the financial needs of your family for years to come!
FIXED RATE CLOSED-END EQUITY LOANS
FEATURING:
- Friendly Process
From application to closing, most loan processing will take no longer than (1) week. Or ask for expedited processing if this does not fit your needs!
- Terms for Today's Families
We designed our term options on these loans to fit the budgetary needs of today's families. Click here to inquire for specific information.
- Fixed Rate
Your Closed-End Home Equity Loan features a fixed rate for a specific term. As your loan payment won't change, you'll be able to plan & count on your family budget.
We are confident this program will benefit you & your family! Please call us today at (734) 487-1033 or click here for more information.
- Is this a fixed or variable rate loan?
EMU Credit Union Closed-End Equity loans have a fixed rate of interest (Annual Percentage Rate) that is based upon the Wall Street Journal Prime Rate. Your interest rate could be reduced by as much as 0.75%, if you have a qualifying credit score and services.
- What is a closed-end loan?
A closed-end loan is any loan that is opened for a given principal amount with a defined repayment term. The loan will be paid in full at the end of the term.
- Is there a minimum loan amount for this program?
Yes. There will have to be at least $5,000.00 in equity in a borrower's home to qualify for this program.
- Do I have to have Private Mortgage Insurance (PMI) if I borrow more than 80% of the value of my home?
No. You will not be required to maintain Private Mortgage Insurance (PMI) on your home, even if you borrow more than 80% of the market value.
- Do I have to provide you with proof of my homeowner’s insurance?
Yes. The Credit Union will require that prior to closing you provide a copy of your current policy. You will also be required to inform your insurer that there is an additional interested party in the property.
- If I’m the only person on the loan, does my spouse who is on the deed have to sign?
Yes. Any person on the deed is required to sign the mortgage that the Credit Union will file to secure its interest in your home.
- What are the closing costs?
There are typically NO closing costs. In the event that you establish a line of credit totaling $100,000.00 or greater, an appraisal will be required. If an appraisal is required, you will be required to pay half the cost.
- How will you determine the market value of my home?
We will calculate the market value by utilizing the State Equalized Value and a third party valuation tool.
- Does it have to be my primary residence?
No. Your primary or secondary residences are both eligible for this program. The home may be a 1-2 unit property, however the borrower must be living in one half, as rental properties are not eligible under this program.
- Is there an application fee?
Yes. There is a $25 application fee, which will be refunded to you at the time of closing.
- How much will my minimum payment be?
Your minimum payment will be impacted by the term that you are eligible for or elect. For specific examples, contact our Loan Officer at (734) 487-1033 or click here.
- Is there a penalty for paying it off early?
No. You will not be penalized for paying this type of loan off early.
- I saw that most applicants would be able to borrow 90% of the market value. Why can I borrow only 80%?
The amount that you are able to borrow against the value of your home is limited by your credit score. If your credit score is lower than 600, you may only borrow 80% of the market value.
- What’s the maximum loan amount?
Qualifying applicants may borrow up to $200,000.00 in equity.
- Can I choose my due date?
Yes. If you choose to remit your payments, you can elect your own due date for the loan. If you sign up for transfer payments (it's a qualifying service!), your default due date will be the 15th of a given month.
- Can I have an extension (aka postponement) on this loan?
No. Home equity loans do not qualify under our extension rules.
- Are there late payment fees?
Yes. If your loan payment is more than 10 days late, you will be assessed a late payment charge. As of 2/21/07, the late payment fee is $25.
- What are "relationship" discounts for qualifying services?
Your interest rate will be decreased if you participate in qualifying services with EMU Credit Union. The qualifying services are:
- checking account with direct deposit;
- debit card;
- e-credit unioning;
- another loan account (each additional loan will count as one relationship);
- member-elect insurance products on EMU CU loans;
- automatic payment transfer on this loan.
If you have (3) or more of these services, you will receive a discount of 0.25%. If you have (4) or more of these services, you will receive a discount of 0.50%.
Please note, discontinuing services during the term of the loan may impact your eligibility for the discount described above.
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HOME EQUITY LINE OF CREDIT LOANS
FEATURING:
- Easy Access
You can access your line of credit by writing a check, transferring funds online via HFS, giving a member service representative a call, faxing a request or visiting our lobby!
- Affordable Monthly Payments
Your payment will be recalculated monthly to reflect 1% of the outstanding principal balance.
- For Today, Tomorrow and Years to Come
Your Home Equity Line of Credit loan will remain open for (7) years. You can borrow today to take your child to Disney, borrow tomorrow to buy her first car and borrow years from now for the tuition to send her off to college (kids grow up so fast).
We are confident that this loan program will benefit you & your family.
- Is this a fixed or variable rate loan?
EMU Credit Union HELOC loans have a variable rate of interest (Annual Percentage Rate) that is based upon the Wall Street Journal Prime Rate. For more information about how and when your interest rate could change, please speak with our Loan Officer or contact us.
- Is this a closed or open ended loan?
This is an open ended line of credit loan. You will be able to take advances at any time over the (7) year term of the loan, as long as the line has not been frozen or closed.
- Why would the line be frozen or closed?
The line may be frozen if we discover that there is reason to believe the value of the home has declined such that you no longer qualify for the line under the terms specified. We may also freeze your line if you become delinquent on your obligations with us, with the primary lender for the property or with any other party that may secure an interest in the home (ex: property taxes). Your line will only be closed in the (7) year term if you request it of us after paying the principal to zero or if the above scenarios exist and you do not have a principal balance under this plan.
- Is there a minimum initial advance amount?
Yes. Upon opening your line of credit, you will be required to take an initial advance of $2,500.00.
- Do future advances have to be a certain amount?
Yes. Future advances under this plan will be required to be at least $250.00, or a fee may be imposed.
- Is there an annual fee to have this loan?
There is NOT an annual fee to maintain your line of credit.
- Do I have to have Private Mortgage Insurance (PMI) if I borrow more than 80% of the value of my home?
You will not be required to maintain Private Mortgage Insurance (PMI) on your home, even if you borrow more than 80% of the market value.
- Do I have to provide you with proof of my homeowner’s insurance?
Yes. The Credit Union will require that prior to close you provide a copy of your current policy. You may also be required to inform your insurer that there is an additional interested party in the property.
- If I’m the only person on the loan, does my spouse who is on the deed have to sign?
Yes. Any person on the deed is required to sign the mortgage that the Credit Union will file to secure its interest in your home.
- What are the closing costs?
There are typically NO closing costs. In the event that you establish a line of credit totaling $100,000.00 or greater, an appraisal will be required. If an appraisal is required, you will be required to pay half the cost.
- How will you determine the market value of my home?
We will calculate the market value by utilizing the State Equalized Value and a third party valuation tool.
- Does it have to be my primary residence?
No. Your primary or secondary residences are both eligible for this program. The home may be a 1-2 unit property, however the borrower must be living in one half, as rental properties are not eligible under this program.
- Is there a minimum or maximum to the number of advances I can take?
No. There is no maximum or minimum number of advances that you can or are required to take within any period of time.
- What is the smallest line amount that I can have?
Lines of only $5,000.00 or greater will be opened.
- How long is my line good for?
Your Home Equity Line of Credit will remain open for (7) years. At that time, if you have an outstanding balance, you will either be required to pay the loan off in one lump sum or renegotiate it for another (7) year period, or convert it to our Closed-End loan program.
- Is there an application fee?
Yes. There is a $25 application fee, which will be refunded to you at the time of closing.
- How much will my minimum payment be?
Your minimum payment will be 1% of the principal balance or $25.00, whichever is greater. Your payment will be recalculated monthly and you will receive a statement with a coupon area for remittance.
- Is there a penalty for paying it off early?
Yes. If you payoff and close the line within 24 months of closing, there will be a fee of $250.00.
- I saw that most applicants would be able to borrow 90% of the market value. Why can I borrow only 80%?
The amount that you are able to borrow against the value of your home is limited by your credit score. If your credit score is lower than 600, you may only borrow 80% of the market value.
- What’s the maximum loan amount?
Qualifying applicants may borrow up to $200,000.00 in equity.
- How can I access my line?
You can access your line with your HELOC checks (ordered for you after closing), online via HFS, by calling and authorizing the draw with a specific password (established at closing), visiting our lobby, or faxing a signed request.
- Can I choose my due date?
No. All Home Equity Line of Credit loans will be due on the 22nd of a given month.
- Can I have an extension (aka postponement) on this loan?
No. Home equity loans do not qualify under our extension rules.
- Are there late payment fees?
Yes. If you pay your loan more than 10 days late, you will be assessed a late payment charge. As of 2/21/07, the late payment fee is $25.
- What are "relationship" discounts for qualifying services?
Your interest rate will be decreased if you participate in qualifying services with EMU Credit Union. The qualifying services are:
- checking account with direct deposit
- debit card
- e-credit unioning
- another loan account (each additional loan will count as one relationship)
- you elect to take the credit disability insurance on this loan
- automatic payment transfer on this loan
If you have (3) of these services, you will receive a discount of 0.25%. If you have (4) or more of these services, you will receive a discount of 0.50%.
Please note, discontinuing services during the term of the loan may impact your eligibility for the discount described above.
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Eastern Michigan University CU
761 Jenness St
Ypsilanti, Michigan
48197
(734) 487-1033
Fax: (734) 487-1951
credit.union@emich.edu
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