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HELOC Plus & Home Equity Loans

Smart. Useful. Flexible.

Sometimes, emergencies arise, and other times you have big plans but not the big money needed to see them through. When you really need some extra money to cover those expenses, the equity in your home might be able to help.

HELOC Plus

The HELOC Plus1 is a brand-new loan offering from Avadian that offers the flexibility of a Home Equity Line of Credit” plus the “budgetability” that comes with a fixed rate Home Equity Loan.

It's a line of credit.

The HELOC part is a revolving line of credit, giving you the freedom to use it when and how you see fit. You can access funds as many times as you need during the first 10 years of the loan. During this period, you make interest-only payments on the amount drawn on the HELOC part, not the entire approved HELOC Plus. The interest rate on a HELOC is a variable rate, meaning the rate can change over time. 

And it can also be used as a fixed-rate loan.

But that’s not all. The “Plus” part  allows you to “lock” in a portion of the HELOC Plus as a fixed rate loan, giving you a fixed payment that includes principal and interest.  

If you lock in a portion using the “Plus” part, you may continue to borrow against any available funds in your HELOC Plus. As you borrow, you may choose to utilize the HELOC part, making interest-only payments, or you may choose to utilize the “Plus” part as long as you have no more than three “Pluses” at one time.

Take a look at this chart to see how it works.

 

When using the HELOC part of
a HELOC Plus…

When using the “Plus” part of
the HELOC Plus…

INTEREST RATE

Variable rate based on an index, plus margin

Fixed rate for the duration of the “lock” period

RECEIVE BORROWED MONEY

At closing and as needed during the first 10 years (the “draw” period)

Entire amount you choose to “lock” when your lock agreement is finalized

LIMITATIONS ON THE PARTS OF A HELOC PLUS

Unlimited advances/draws during the 10-year draw period

A maximum number of three “locks” are allowed at one time

MINIMUM ADVANCE

$500

$5,000 per “lock”

PAYMENTS DURING BORROWING PERIOD

Interest-only payments for 10 years only on the amount you borrow

Fixed principal and interest payments on the amount you choose to lock

PAYMENTS DURING REPAYMENT PERIOD

Principal plus interest payments for 20 years

“Locks” are available for 36 months, 60 months, 84 months, 120 months, and 180 months

Home Equity Loans

A home equity loan allows you to borrow against the equity you have built in your home. The difference between a home equity loan and line of credit is that a home equity loan establishes a fixed term and rate right from the start. So, if you have identified how you want to use the equity, then a home equity loan might be right for you. 
 


1Home equity line of credit rates are based on loan-to-value and creditworthiness. The closing costs will be waived with a minimum advance at closing of $10,000. (The $10,000 must be new money.) Depending on the credit limit, closing costs, and other fees are estimated to be between $300 and $500. If Home Equity Line of Credit falls below $9,000 in the first 365 days, you will have to reimburse the amount of the closing cost paid on your behalf by the credit union. You must carry insurance on property that secures this plan.
 
All rates and offers are subject to change without notice and cannot be combined with other special promotions.


The credit union is federally insured by the National Credit Union Administration.
Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.

Equal Housing Logo Equal Housing Opportunity Lender. 
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