Home Equity Line of Credit (HELOC)

LGFCU’s Home Equity Line of Credit (HELOC) is a secured open-end loan you can use again and again. With this line of credit, you borrow against the value your home has built up over several years.

Whether you want to make improvements on your home or pay down high-interest debt, this HELOC will meet those needs.

HELOC features

• Borrow up to 90% of the appraised value of your home, less the amount owed on your present mortgage
• Borrow any amount up to your credit line at any time within 15 years, subject to terms of the account agreement. However, your repayment period would continue as originally scheduled until your remaining balance is paid-in-full.
• No need to reapply or record a new deed of trust.
• Minimum payment based on the interest rate, loan balance, and payment frequency
• No origination fees or discount points required
• Can serve as overdraft protection for your LGFCU Checking Account
• Advances may be made online in MemberConnect, via 24-hour Voice Response, at your local branch, or by contacting the Call Center.

Eligible Property

• Property must be in North Carolina or in a county in South Carolina, Virginia or Georgia that adjoins North Carolina
• Rental property is not eligible for financing
• Maximum combined loan amount at a 90% loan-to-value is $400,000 for properties not located in a subdivision and $500,000 for properties that are.
• Maximum combined loan amount for second home or vacation home is 80% loan-to-value.

Processing Fees
Fees may range from $300 to $750. Processing fees on loans secured by property in Virginia and South Carolina are higher and not all fees can be waived. Appraisal fees vary by region. A loan officer can assist you in determining the expense in your area.

Home Equity Rate
The interest rate on our Home Equity Line of Credit is adjustable and subject to change quarterly. The rate is based on the 26-week Treasury Bill rate set on or after the 15th day of the second month of the previous calendar quarter. The rate may not change more than 1/2 percentage point each quarter. The maximum interest rate of ceiling on the loan will be the beginning rate plus 5 percentage points or 12.75 percent, whichever is higher, but never more than 18 percent.

Insurance
LGFCU offers Credit Life and Disability loan origination insurance for HELOCs. If Credit Life and Disability insurance is desired in conjunction with life insurance, the payments will be $2 per thousand higher than disclosed under the Payment Schedule.

Payment Schedule
The payment schedule is based on the minimum per $1,000 of the highest outstanding balance rounded to the next highest increment.

Annual Percentage Rate	Semimonthly/Biweekly per $1000	Monthly per $1000
Up to 12%	$6.00	$12.00
12.25% to 15.00%	$7.00	$14.00
15.25% and higher	$8.00	$16.00

Tax Advantages
Most interest paid on first and second mortgages is deductible on itemized returns. The Home Equity Line of Credit is a second mortgage; therefore, you could save substantially by borrowing against your home instead of using other types of credit. Check with your tax advisor for specific benefits that may apply to you.

Make your home’s value work for you!

• Log in to MemberConnect
• Contact the Call Center at 888.732.8562
• Visit your local branch