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Home Equity Line of Credit

Home > Personal Accounts > Borrowing > Home Equity Line of Credit | HELOC | Rockland County | Palisades Credit Union

Home Equity Line of Credit (HELOC)

Palisades Credit Union Home Equity Lines of Credit allow homeowners to use available equity to help finance for home improvements, tuition, debt consolidation, vacation or to refinance existing mortgages with higher rates. A Home Equity Line of Credit (HELOC) is a revolving form of credit for 10 years that uses your home as collateral. Over the 10 years you are able to draw money as you see fit. After the 10 years are up there is a 15 year repayment term.

HELOC Features:

  • Only pay for what you use on your line of credit.
  • Intro rate of 1.99% APR1 for 6 months and then Prime -.10%. 2
  • No Closing Costs on lines up to $250,000. 3
  • Refinance existing Mortgages / Home Equity Loans.
  • Set up account activity notifications through Online Banking.
  • Available on properties in New York, New Jersey, Connecticut, Massachusetts, and Pennsylvania.
  • Possible tax advantages. Consult with your tax advisor to determine eligibility.

Home Equity Line of Credit (Principal & Interest)

  • Pay down your line with principal and interest payments from the start.

Home Equity Line of Credit (Interest Only)

  • Pay only interest on advanced funds for the first 5 years.
  • Option to pay towards the principal. 

1 APR=Annual Percentage Rate.

2 Prime Rate as of 4/25/2016 is 3.50%. HELOCs have a floor rate of 3.50% and a ceiling of 15.00%. APR of 1.99% is fixed for the first 6 months, followed by a variable rate based on the Wall Street Journal Prime Rate minus .10%. 

3 Average closing costs for loans of $250,000 are $3121. Must draw at least 50% of line amount to avoid paying for closing costs. The draw period for the credit line is 10 years.

* For interest only Home Equity Lines, loans will consist of principal and interest after the 60th payment with a minimum payment of $100. Upon completion of the draw period, loan payments will be calculated to amortize at 180 months. Minimum loan amount is $25,000, maximum loan amount is $500,000. A Home Equity Line of Credit is secured by a first or second mortgage, which must be the borrower's primary residence and consist of residential 1-4 unit dwelling, condo or Planned Urban Development (PUD). Offer applies only to properties located in NY, NJ, CT, PA and MA. Maximum loan to value ratio in first position is 80% and in second position is 70%. Borrower may have to pay a closing cost recapture fee if during the first 36 months of the loan the account is closed or the outstanding balance falls below 50% of the credit line. Property insurance required. Flood insurance may be required. HELOCs do not qualify for Advantage Pricing. 

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