Put the power of your Home's Equity to work for you!
Now, until March 31st, when you apply for a home equity line of credit (HELOC), you may receive up to a 1.000%* discount off the offered rate for the first 12 months! After the first year, the APR can range from 6.500% to 18.000% based on the 26-Week U.S. Treasury Bill and other criteria.
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*Terms and Conditions: HELOC Up to a 1.000% Rate Discount Program offers a variable Annual Percentage Rate (APR) determined by adding a margin to the 26-week U.S. Treasury Bill index rate, which is 4.500% as of January 1, 2025, resulting in an APR range of 6.500% - 18.000%. The margin varies based on the combined loan-to-value (CLTV) ratio and underwriting criteria. Rates are subject to change and are adjusted quarterly. An introductory rate discount of up to 1.000% is available for the first 12 months, after which the APR reverts to the standard variable rate based on the index and margin. The rate discount is contingent upon meeting all loan terms at closing. The APR may increase or decrease based on changes to the index rate, with rate adjustments subject to an annual cap of 2.000% and a lifetime cap of 6.000%. The maximum APR is calculated by adding the initial rate to the lifetime cap. The draw period is 120 months (10 years) with interest-only payments. For example, with a $1,000 loan at an 8.000% introductory APR, the estimated interest-only payment would be $6.67 per month. After the draw period, the repayment period is 180 months (15 years), with payments including principal and interest. For instance, if the APR adjusts to 18.000%, the estimated monthly payment on a $1,000 loan would be $16.12. The maximum loan-to-value (LTV) is 80% of the appraised value, with the property needing to be owner-occupied. The program is available in Maryland, Virginia, and Washington, D.C., and is contingent upon credit score, income verification, and collateral evaluation. Fees include a non-refundable $100 origination fee, appraisal fees between $550 and $750, and additional settlement fees that vary by state. Closing costs are the responsibility of the borrower unless otherwise stated. Loan approval, rates, and terms depend on underwriting criteria and are subject to change. This program cannot be combined with other promotional offers unless specified in writing. Borrowers should seek independent financial and legal advice to understand their obligations and risks, and IDB Global Federal Credit Union reserves the right to terminate or modify the offer at any time. For full disclosure click here.
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 are 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 will 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.
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.
Current HELOC Rates
Effective as of 1/1/2025
| Options | New Rate |
|---|---|
| 1st Residence - 1st Deed - 50% CLTV | 6.500% |
| 1st Residence - 1st Deed - 60% CLTV | 6.750% |
| 1st Residence - 1st Deed - 70% CLTV | 7.000% |
| 1st Residence - 1st Deed - 80% CLTV | 7.250% |
| 1st Residence - 2nd Deed - 50% CLTV | 7.250% |
| 1st Residence - 2nd Deed - 60% CLTV | 7.500% |
| 1st Residence - 2nd Deed - 70% CLTV | 7.750% |
| 1st Residence - 2nd Deed - 80% CLTV | 8.000% |
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.