What if You Already Live in Your Dream Home?
Live in Washington? Then WSECU is your credit union.
Live in Washington? Then WSECU is your credit union.
WSECU | The Credit Union for Washington | Since 1957
Your Home's Equity Can Help You Create Your Dream Home
Instead of looking for a dream home, why not take a look at the one you already own? The equity you've built can pave the way for renovations to make it the home of your dreams!
What is equity? It’s the current value of your home minus your mortgage balance. You can borrow against that equity to renovate, upgrade and increase your home’s value.
WSECU can help with two loan options: a Home Equity Loan or a Home Equity Line of Credit.
This may be right for you if...
This may be right for you if...
- You’re ready to get started on your renovation
- Your home needs a major repair
- You need a loan with a low interest rate
Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) is a revolving line of credit funded by the equity you have in your home. Think of it like a credit card for your home renovation project (but with a much lower rate).
- Best for more flexible renovation budgets
- Access your line of credit for up to 10 years**
- Variable rate options
- When used for home improvements, a portion of the interest may be tax deductible.
Home Equity Loan
A Home Equity Loan is a term loan in which you receive a one-time lump sum. The loan is repaid over a fixed term , at a fixed interest rate, with equal monthly payments.
- Best if you know how much you need for a renovation project
- No early repayment fees
- Fixed rates*
- Pay back your loan over 10, 15 or 20 years with no change in interest
Frequently Asked Questions
Our equity loans are typically a no-fee loan to our members, unless our member requests a full appraisal or we need to close through an escrow office to clear up an outstanding lien.
We value out your home using our Automated Valuation Model. We can lend up to 80% combined loan to value if certain qualifications are met. We determine loan-to-value taking in to account what your home is worth, how much you owe on your first mortgage and how much you are looking to borrow with this new loan.
Fixed-rate loans are great for people who want a locked in rate, know the exact amount they want to borrow, and prefer to make a set monthly payment and know they’ll pay off in their loan in a specific amount of time. A variable-rate HELOC is great for home improvement projects when you don’t know how much you’ll need, or to have as an emergency line if a need arises.
It does not. We offer 10, 15 or 20 years with no change in rate for home equity loans. We also offer no prepayment penalties for a home equity loan, so feel free to make extra payments to pay down the principal balance faster.
After you apply, we will value out your home using our Automated Valuation Model (similar to Redfin or Zillow). If you think your home is worth more, you are welcome to request a full appraisal at your cost. The appraisal fee can come from loan proceeds.
If you would like to get an idea of your home’s value and aren’t ready to apply, tools such as the tax assessed value, Redfin or Zillow can give you a ballpark.
It typically takes us 2-4 weeks to move through the entire loan process, depending on the complexity of your loan and the results of our drive-by appraisal and title search.
Possibly, consult with your accountant or tax advisor to determine if your loan qualifies you for a tax benefit.
Many of these loans are set up as liens against your property, allowing the lender to provide you a lower rate since the loan is secured. So, if you already have a first mortgage and a loan that has your home as collateral, you would need to payoff and close that loan in order to move forward with our home equity loan. This process involves closing through an escrow office which is an estimated fee of $650.00.
Other options for simplify your debt with WSECU include a personal loan and our Low Rate Visa card.
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