Home Equity Loans and Lines of Credit - New England Federal Credit Union

Which is the Best Fit for Your Plans?

What's the difference between a Home Equity Line of Credit (HELOC) and a Home Equity Loan?

There are many similarities between these two types of home equity financing, but there are also significant differences. How you plan to use your funds will determine which is a better choice for you. Contact a loan officer and we’ll help you decide which direction to go.

Home Equity Line

Home Equity Loan

Home Equity Line

Home Equity Loan

Funds Disbursement

As Needed

Lump Sum at Closing

Home Equity Line

Home Equity Loan

Interest Rate

Variable

Fixed

Home Equity Line

Home Equity Loan

Draw Period

15 Years

None. Funds Disbursed at Origination.

Home Equity Line

Home Equity Loan

Loan-to-Value Ratio

Up to 90%

Home Equity Line

Home Equity Loan

Is There a Tax Benefit?

Ask Your Tax Professional

Same

Home Equity Line

Home Equity Loan

Payments

Monthly Payment Based on Amount Advanced

Fixed Monthly Installment Payments

Home Equity Line of Credit

A HELOC variable-rate revolving line of credit puts you in control. Need cash now? Take funds when needed, or get peace of mind knowing your money is available when you need it — use it as a line of credit. You control how much you owe by how much you borrow.

Payment Option^*

Home Equity Line of Credit (HELOC): During the ”Advance Period,“ pay $12 per $1000 borrowed (or $50 as your minimum) of your outstanding principal.

^*Or you can choose to pay additional principal as well. It's your choice.

Table data for Home Equity Line of Credit
12-06-2023
Annual Percentage Rate ¹	Index ²	Margin	Loan to Value ³	Alert Me
8.00%	8.50%	- 0.50	up to 80%	Receive a notification when this rate changes

9.50%	8.50%	+1.00	80.01% - 90%	Receive a notification when this rate changes

*APR: Annual Percentage Rate. Generally, fees paid by NEFCU. If appraisal required, member-paid fees may range from $350 to $600. For Home Equities in first Mortgage position, members may be required to pay Title Examination fees which may range from $250 to $500 and Title Insurance fees which may range from $1.65 to $2.75 per $1000 borrowed.

Home Equity Plus

The proceeds of a Home Equity Plus loan are fully disbursed at the loan closing. Principal plus interest payments begin immediately for the term of the loan. This loan is good for amounts known to you and that you want to repay in a specific time period. It is good for the purchase of autos, RVs, ATVs, education expenses and vacations.

Table data for Home Equity Plus
12-06-2023
Annual Percentage Rate ⁴	Term	Monthly Payment per $1000 ⁵	Loan to Value ³
6.50% ⁶	5 years	$19.57	up to 80%

7.50% ⁶	10 years	$11.87	up to 80%

7.99% ⁶	15 years	$9.55	up to 80%

Generally, fees paid by NEFCU. If appraisal required, member-paid fees may range from $350 to $600. For Home Equities in first Mortgage position, members may be required to pay Title Examination fees which may range from $250 to $500 and Title Insurance fees which may range from $1.65 to $2.75 per $1000 borrowed.

Table data for Home Equity Plus CLTV 80.01% to 90%
12-06-2023
Annual Percentage Rate ⁴	Term	Monthly Payment per $1000 ⁵	Loan to Value ³
7.50% ⁶	5 years	$20.04	up to 90%

8.50% ⁶	10 years	$12.40	up to 90%

8.99% ⁶	15 years	$10.14	up to 90%

Generally, fees paid by NEFCU. If appraisal required, member-paid fees may range from $350 to $600. For Home Equities in first Mortgage position, members may be required to pay Title Examination fees which may range from $250 to $500 and Title Insurance fees which may range from $1.65 to $2.75 per $1000 borrowed. CLTV is Combined Loan-to-Value ratio.

Disclosures

¹ All rates quoted are subject to change monthly, the maximum interest rate is 18% and the minimum interest rate is 4.50%. The rate may increase after the consummation of the loan. These are our posted rates; your rate could vary according to your credit.

² The Index is the Prime Rate published in the Wall Street Journal on the last Wednesday of each month.

³ Maximum loan to values may vary based on market conditions. Up to 90% LTV with a current appraisal. Other restrictions may apply. Call a loan officer for further details.

⁴ These are our posted rates; your rate could vary according to your credit.

⁵ The payment amount may be higher if escrows for property taxes, homeowner's insurance or mortgage insurance are applicable.

⁶ Fixed Rate

Home Equity Plus and Home Equity Lines

Which is the Best Fit for Your Plans?

Funds Disbursement

Interest Rate

Draw Period

Loan-to-Value Ratio

Is There a Tax Benefit?

Payments

Home Equity Line of Credit

Payment Option*

Home Equity Plus

Payment Option^*