Now, for a limited time, when you apply for a home equity line of credit (HELOC), you will receive a 1.00% discount off the offered rate for the first 12 months! Terms and Conditions apply.
Your most valuable asset can provide you with the necessary funds. Whether you need it for remodeling, emergency spending, or a tuition payment, our Home Equity Loan could be the answer.
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Home Equity Line of Credit (HELOC)
Unlock the full potential of your home’s equity with our Home Equity Line of Credit (HELOC). This flexible financial solution is ideal for homeowners in Maryland, Virginia, and the District of Columbia looking to access funds for various needs. Whether you’re planning home renovations, consolidating debt, or covering unexpected expenses, our HELOC offers you the freedom to borrow as needed and only pay interest on the amount you use.
Key Features of Our HELOC
- Variable Line of Credit: Benefit from a line of credit that adjusts annually based on the 26-week Treasury Bill (T-Bill) index plus your margin. This reflects current market conditions and ensures competitive rates.
- Flexible Borrowing: Draw funds up to your credit limit during the 10-year draw period, paying only interest on what you use. After this period, you’ll have 15 years to repay both principal and interest, offering a manageable payment structure.
- High Loan Limits: Access up to $1,250,000 on a first deed and $500,000 on a second deed, with a combined loan limit of $2,000,000. Your specific loan limit will depend on your home's value and your loan-to-value (LTV) ratio.
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Questions? Contact our Lending Department.
How Can You Use a HELOC?
- Home Renovations: Finance major improvements such as remodeling a kitchen, adding a room, or installing new flooring.
- Debt Consolidation: Combine high-interest credit card debt or personal loans into one manageable payment with lower interest rates.
- Emergency Fund: Keep funds accessible for unexpected events like medical emergencies or major repairs.
- Education: Pay for tuition or other educational expenses at lower interest rates than traditional student loans.
*Terms and Conditions - HELOC 1% Rate Discount Program Annual Percentage Rate (APR): The APR is variable and is determined by adding a margin of 3.5% to the index rate, which is the 26-week U.S. Treasury Bill Auction discount rate. As of the effective date, October 1, 2024, the index rate is 5.0%, resulting in a current APR of 8.5%. Rates can change at any time and are adjusted quarterly on the first day of January, April, July, and October. Minimum Rate Threshold: The minimum rate threshold of all HELOCs originated during the promotions is 6.75%. Introductory Rate Discount: For the first 12 months, a 1.0% discount will apply to the current APR, reducing it to 7.5%. After the introductory period, the APR will adjust to the standard variable rate based on the index and margin. Variable Rate Feature: • The APR may increase or decrease based on changes to the index rate. • Rate adjustments are subject to an annual cap of 2.0% and a lifetime cap of 13.5% (initial rate of 7.5% plus 6.0%). • The APR will never exceed the lifetime cap or the maximum permitted by law. Draw Period: The draw period is 120 months (10 years). During this period, payments will be interest-only. For example, with a $100,000 loan at an introductory APR of 7.5%, the monthly interest-only payment would be approximately 625.00. Repayment Period: After the draw period, the repayment period lasts 180 months (15 years). Monthly payments during this time will include principal and interest. For example, if the APR adjusts to the maximum rate of 13.5%, the monthly payment on a $100,000 loan would be approximately $1,298.32. Loan-to-Value (LTV): The maximum LTV for this program is 80% of the property’s appraised value. Fees and Costs: • Origination Fee: $100 • Appraisal Fee: may vary between $550 to $750 dollars depending on the value of the property. • Additional Settlement Fees: Settlement fees will apply and vary based on the state of the property. Eligibility: This offer is available to members applying for a primary residence property, with a qualifying credit score and subject to underwriting criteria. Loan approval is contingent on credit qualifications, verification of income, and collateral evaluation. The property must be a primary residence located within the states of Maryland (MD), Virginia (VA), and Washington, D.C. General Terms: Rates and terms are subject to change without notice. Maximum credit lines are based on property value, credit qualifications, and other underwriting criteria. This program may not be combined with other offers. Disclosures: The APR includes only interest and no other costs. Additional settlement fees based on the state of the property will apply. For further information, including the current index value, margin, and annual percentage rate, please contact us at 202-623-3363 or by email at cu.lending@idbglobalfcu.org.
Current HELOC Rates
Effective as of 11/05/2024
| Options | New Rate |
|---|---|
| 1st Residence - 1st Deed - 50% CLTV | 7.000% |
| 1st Residence - 1st Deed - 60% CLTV | 7.250% |
| 1st Residence - 1st Deed - 70% CLTV | 7.500% |
| 1st Residence - 1st Deed - 80% CLTV | 7.750% |
| 1st Residence - 2nd Deed - 50% CLTV | 7.750% |
| 1st Residence - 2nd Deed - 60% CLTV | 8.000% |
| 1st Residence - 2nd Deed - 70% CLTV | 8.250% |
| 1st Residence - 2nd Deed - 80% CLTV | 8.500% |
Additional Underwriting Requirements
- Credit Score: Your credit history will influence your loan terms and approval.
- Loan-to-Value Ratio (LTV): The ratio of your home’s appraised value compared to the amount you owe on your mortgage.
- Income Verification: Proof of income such as pay stubs, tax returns, or bank statements will be needed.
Please Note: Additional underwriting standards and criteria may apply based on your financial situation and loan specifics.
Required Documentation
- Verification of Employment (VOE): Recent pay stubs, W-2 forms, or tax returns (for self-employed individuals).
- Mortgage Statements: Current mortgage statement(s) showing the balance owed.
- Property Information: Recent property tax statements, home appraisal documents, and proof of home insurance. If the property is held in a revocable trust, the loan will be issued in the names of the members who own the property.
- Credit Report: A current credit report (we may request to pull this on your behalf).
- Additional Documentation: Depending on your application and financial situation, additional documentation or information may be required.
Disclaimer: All rates, terms, and conditions are subject to change based on market conditions and borrower qualifications. The rates provided are based on current market conditions and are subject to adjustment based on the 26-week Treasury Bill (T-Bill) index plus your specific margin. HELOCs are subject to credit approval, and additional underwriting criteria may apply. Loan terms, limits, and rates are subject to change. For full details and to confirm current rates and terms, please contact us directly.