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Your home is an important place — it’s where you host friends and spend time with family. It’s your oasis after a long day at work.

But did you know your home can also be your financial ally and help you to fund other things in your life?

Home equity is the market value of your home minus your remaining mortgage balance. Whether you need cash for a great travel adventure or a kitchen remodel, you can tap your home equity to finance your goals. Spectrum Credit Union offers home equity loans and home equity lines of credit at reasonable rates to make this process as simple as possible.

Home equity loan

With a home equity loan, you can borrow a lump sum against the value of your home.

The repayment term is typically fixed, between 5 to 15 years, and the payment schedule usually consists of equal payments that will pay off the entire loan within that time. Home equity loans feature fixed monthly payments at a competitive rate, with low closing costs.1

Recommended for

  • Borrowers who need a certain amount of funds for a specific purpose, such as a home remodel or to cover a debt 


Key features

  • Interest rate is locked in for the entirety of the loan
  • Costs are spread out over time 
  • Leftover funds can be used for debt consolidation, school expenses, and other things 
To check your pending application status, simply log in to your existing application.

Home equity line of credit

A home equity line of credit is a revolving credit that can be drawn on incrementally at different times.

The amount of the line of credit is determined by taking a percentage of the appraised value of the home and minus the balance owed on the existing mortgage. Income, debts, other financial obligations, and credit history are also factors in determining the credit line amount. Some lenders will charge membership or maintenance and transaction fees every time you draw on the line. Interest is typically variable instead of fixed.

Once the line of credit is approved and processed, you can tap into the funds whenever you need them. This gives you the flexibility to fund projects big and small — whether you’re upgrading your bathroom or remodeling your whole home. 

Recommended for

  • Borrowers who need varying amounts of funds for different purposes at different times
  • Borrowers who will need quick access to their home equity at a later time

Key features

  • Ability to borrow small sums periodically instead of one lump sum
  • You’re only charged for interest when the money is deducted 
  • Zero closing costs2
  • No annual servicing fee

Depending on your credit and your home’s market value, lines of credit are available for up to $350,000.3 To begin using your home equity line of credit, you can write Equity Checks, use your HELOC debit card for purchases, or transfer funds from your line of credit to another account.

To check your pending application status, simply log in to your existing application.

Still have questions?

Our Mortgage Relationship Managers are here to help you every step of the way. Please call our Home Loan Help Desk at 888-750-4124. For those outside the U.S., call 510-251-6010. 

For Home equity lines of credit, the rate is variable and based on the Prime Rate as published in the “Money Rates” section of the Wall Street Journal, plus a margin. The margin is based on loan-to-value and borrower(s) credit score at time of origination. The maximum annual percentage rate in a variable rate plan is 18%.


1 Rate of 4.250% (Annual Percentage Rate (APR) of 4.364% effective as of 3/20/20 and subject to change without notice. 4.364% APR calculated based on a loan amount of $50,000. At a 4.000% rate (4.364% APR), a 15-year home equity loan for $50,000 would have monthly payments of $369.84. Actual rate will be based on the loan-to-value (LTV) ratio and the borrower’s credit score at the time of origination. For home equity loans, rate is fixed for the term of the loan. Home equity loans in TX available up to 80% LTV maximum.
2 If account is closed within three years of opening, early closure fees will be added to the Account Balance in the amount of $500 for credit lines up to $100,000 and $700 for credit lines above $100,000. Early closure fees are not accessed where prohibited by state law or when the account is closed as part of a Credit Union refinance.   
3 Credit limit based on your creditworthiness. Please contact the Credit Union for the minimum and maximum loan amounts for the various Combined Loan-to-Values (CLTVs).

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