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.
Home is valued at $700,000
Mortgage balance is $500,000
Equity is $60,000
You could apply to borrow up to $48,000, 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 out on your equity to pay for any number of expenses — remodel your kitchen or bathroom, a car, college tuition, a vacation, even starting your own business! And since we’re a 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.