Mortgages

Home Equity Loan

Leveraging home equity to your advantage

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 $1,000,000
Mortgage balance is $550,000
Equity is $250,000

You could apply to borrow up to $250,000, 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.

Home Equity LoanInterest RateAPRPointsMonthly PaymentsLoan Term [Months]
20 Yr Fixed Second Mortgage5.500%6.149%0$1,720240
Prime HELOC 10 yr Draw/10 yr Repay5.000%5.000%0$1,042240

Disclosures

Note: Rate and payment information above based on a $250,000 Home Equity Line/Loan amount.

Features

Understanding Home Loans

Learn the ins and outs of mortgage loans, whether you’re a first-time homebuyer or considering a refinance.

Explore

Stanford FCU offers two types of Home Equity Loans:

Home Equity Line of Credit (HELOC)

  • Offers a low, adjustable interest rate
  • Loans up to $250,000
  • 10-year draw period and 10-year repayment period
  • Interest-only payments during the initial 10-year draw period
  • NO points, NO annual fee, NO prepayment penalty
  • Allows you to borrow up to 80% of the value of your property, less any other loans against the property
  • California owner-occupied and second-home properties only
  • $500 processing fee, plus title and escrow fees (Ambassadors get up to $675 credited after funding!)

Home Equity Loan

  • Offers a low, fixed interest rate
  • Loans up to $250,000 and up to 20 years to repay
  • Allows you to borrow up to 80% of the value of your property, less any other loans against the property
  • California owner-occupied and second-home properties only
  • $500 processing fee, plus title and escrow fees (Ambassadors get up to $675 credited after funding!)

Equity Specialist

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.

 

Disclosures

Rates effective 11/15/2019. The examples shown here are based on an owner-occupied single-family detached house located in the state of California. The actual interest rates and APRs available to you may vary based on your credit score, LTV ratio and other factors, and may be higher than those displayed here. Rates, closing costs and points may vary by property location, loan type and borrower credit and income. All loans and terms are subject to credit approval and membership eligibility. Rates are subject to change without notice. Some restrictions may apply. Please call for rate information about mortgage products with terms other than those shown.

Fixed Rate Home Equity Loan payment example: The Fixed loan payment is based on a loan amount of $250,000, 60% Combined Loan-to-Value (CLTV), and a FICO® score of 750 or greater. Monthly payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher.

Home Equity Line of Credit payment example: The HELOC rate is variable and subject to increase during the loan term. Rate is based on the Prime Rate as published in The Wall Street Journal Money Rates Table (“Index”) plus .250% (“Margin”). The floor rate is equal to the Index published at the time of loan application. The lifetime maximum variable APR is 16.00%. The HELOC payment is based on a loan amount of $250,000, 80% Combined Loan to Value (CLTV), and a FICO® score of 750 or greater. Monthly payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation may be higher. Equity lines have a 10-year draw period and a 10-year repayment period for a total term of 20 years. Payments during the 10-year draw period are interest only. There is no annual fee or early termination fee.

Home Mortgage Disclosure Act (HMDA) Notice

The HMDA data about our residential mortgage lending are available online for review. The data show geographic distribution of loans and applications; ethnicity, race, sex, age, and income of applicants and borrowers; and information about loan approvals and denials. These data are available online at the Consumer Financial Protection Bureau’s Web site (www.consumerfinance.gov/hmda). HMDA data for many other financial institutions are also available at this Web site.
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