Home equity loans, also known as second mortgages or second deeds of trust loans, are used to describe loans in addition to a first mortgage. They are based on the current value of your home versus your existing mortgage balance. You may borrow up to 80% of your equity.
For example:
Home is valued at $700,000
Mortgage balance is $500,000
Equity is $60,000
You could apply to borrow up to $60,000, which is 80% of the combined loan-to-value in the example above. What’s more, your interest may be tax deductible (please check with your tax advisor).
At Stanford FCU, you can cash in on your equity to pay for any number of expenses — remodel your kitchen or bathroom, pay for college, consolidate other debt, or even start your own business! And since we’re not-for-profit, you’ll have no points, no annual fees and no prepayment penalty. Stanford FCU’s home equity loans get you the money you need to live your life without the extra fees or high-interest rates you’ll find at banks.
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Stanford FCU offers two types of Home Equity Loans:
The loan rate is one of the most important factors in buying a property. Besides the amount of the loan, the factor that most affects the affordability of your loan is the interest rate you pay on your loan. Your monthly payment includes: (1) the interest you owe on your outstanding loan balance and (2) a portion of the principal itself, which reduces the remaining loan balance. The lower the interest rate, the lower your monthly payment. Consider that a one-percentage point difference in rates can translate to a 10% difference in the monthly payment. Since rates fluctuate daily depending on many economic factors, we encourage you to check rates frequently, to determine how much you can afford.
Our in-house home equity lending specialist is among the best in the industry! Whatever your situation, chances are we’ve helped someone with a very similar situation before. We are also unique in our ability to serve members’ needs. We’re large enough to provide expertise and a wide variety of loan programs, yet small enough to offer personalized service and cater to the most unique situations.
Susan Nilipour Motta
Home Equity Lending Specialist
NMLS #1401459
650.388.9724
susan@sfcu.org
Learn the ins and outs of mortgage loans, whether you’re a first-time homebuyer or considering a refinance.