What is a home equity loan? Learn about Arsenal’s unique home loan products
When you need more than a new coat of paint, we give you options in the form of home equity loans. When you use the equity in your home as collateral, you secure yourself a better rate than you would on other types of loans. Even if you just closed on a new house, you can still borrow up to 100 percent of the available equity in your home.
5 reasons why Arsenal Credit Union is your one-stop home equity shop
What can I use a home equity loan for?
Anything. Many people use a home equity loan or line of credit for remodeling projects, home additions and repairs. But, you can also use it for consolidating debt, elective medical procedures and other major expenses. Watch the video above to learn more.
What are Arsenal’s home loan products?
Home Equity Loans
With a home equity loan, you receive your money in a lump sum. This is perfect if you know what you are going to spend it on, such as a large remodeling project, an addition to your home or paying off all of your high-interest credit card bills and combining them into single monthly payments with a lower interest rate.
Because you receive your money in a lump sum, your rate stays fixed, giving you a predictable monthly payment throughout the loan term.
Home Equity Lines of Credit (HELOC)
With a HELOC, you receive a line of credit you can access when you need to, allowing you to borrow only what you really want. A good example of a HELOC in action is using it to build a pool, and then drawing on it again over time for maintenance, parts and repairs. Of course, you could only take out $1,000 from a $10,000 line of credit and pay that back before drawing from your HELOC again – it’s yours to use when you need it.
Because you can borrow on your HELOC when you need to, rates are variable, not fixed like home equity loans. Depending on how much and when you borrow, your monthly payment fluctuates.
Home Improvement Loans
We have special loans just for making energy-efficient improvements to your home. These loans are much cheaper than most and require no collateral. Use this loan for energy-conscious solar panels, windows, doors, siding and insulation, plus large appliances such as washers and dryers.
Unlike a home equity loan or line of credit, this loan requires no appraisal, making the process much quicker. You can also apply for this loan online or through your online banking account – no need to stop by a branch. Borrow as little as $500 or as much as $15,000 and get terms as long as 60 months.
Most credit unions and banks don’t offer this type of loan. We’re happy to provide it so you can build up your big dreams of home ownership without leaving a big footprint on the environment.
Why choose Arsenal?
1. Borrow more
Most lenders only let you borrow up to 80 percent of your home’s available equity. At Arsenal, we have a hefty 100-percent option for qualified borrowers. Other institutions that have this are few and far between.
2. Stress less
Our low rates won’t leave you scrambling to get an expensive payment together every month. Your interest payments may even be tax deductible*.
3. Close with no costs**
Closing costs include title search, title company rep fee, document preparation and appraisal. We pay for this, enabling you to keep around $500-$1,500 in your pocket.
How do I apply?
To apply for a home equity loan or line of credit, schedule an appointment at one of our branches. You can also speak to a staff member about our loans and our current rates at 314.962.6363 (618.239.6363 for Illinois), option 4 then 2. Or, start a live chat right during normal business hours.
*Check with your tax advisor for details.
**If loan is repaid within first 12 months, borrower must reimburse credit union for closing costs.