The first step in
determining whether
or not a Home Equity
Loan would be to
work out how much
equity (roughly) you
have one your home.
Follow these steps:
- Write down
the appraised
value of your
home
- Multiply
that by 80%
- Subtract all
the balances on
your mortgage
and other home
equity loans
from this
figure.
- The result
is roughly what
you can borrow
on your home
If your estimated
amount to borrow is
less than $10,000,
you would not
qualify for a Home
Equity Loan. The
purpose of Home
Equity Loans is to
help you make a big
one-time purchase of
lasting value, such
as paying for a
child’s college
education or
consolidating large
amounts of credit
card debt.
Another
consideration would
be to consult with a
tax professional to
find out if you can
deduct the interest
and charges from
your taxes. If not,
a Home Equity Loan
would be of little
value to you unless
the rate was
incredibly low.
One of the most
important points to
consider is that you
are using your home
as collateral on a
contractual
obligation. You are
less likely to lose
your home with a
Home Equity Loan
than with other
types of
home-secured loans
such as a mortgage,
but the reality
remains that you
could lose your home
if you fail to make
payments or violate
other terms on your
loan.
For a Loan
application packet
please call the
credit union at
(713) 473-9244 or to
apply in person,
bring the following
materials to either
credit union
location.
The following
documents are
REQUIRED to process
the loan:
- Executed
credit
application
- Current pay
stub (last two
(2) years tax
returns if
self-employed,
retired, or
income is from
commissions)
- Mortgage
statement(s) to
show current
mortgage loan
balances and
payments
- Most recent
tax appraisal or
tax statement
- Deed of
trust
- Proof of
Homeowners
Insurance
Additional Home
Equity requirements:
- Property
must be
homestead
- A borrower
may obtain only
one equity loan
at a time
- An equity
loan may not be
financed more
frequently than
once a year
- There is no
pre-payment
penalty
- Loan
closings must
occur in the
office of the
lender, title
company or
Attorney
- Origination
fee of 3%
- Closing
documents MAY
NOT be executed
before the 12th
day after the
lender received
an executed
credit
application and
Notice
concerning
extensions of
credit
- There is a
3-day Right of
Recession period
after the loan
documents are
signed before
loan proceeds
will be
distributed
(Sundays and
legal holidays
excluded)
- Appraisals
will be required
on loan amounts
of $25,000 or
greater
- Flood
determination
required
- All fees
that are accrued
due to this loan
are covered in
the 3%
origination fee
The credit union is
an Equal Housing
Lender. We do
business in
accordance with
Federal Fair Lending
Laws.
