hHouston Police Federal Credit Union Online
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Home
Equity Line of Credit Loans
How
does this new loan work?
Applications
will be taken at the Memorial office. Upon approval, and after the state
required waiting period, a credit limit will be established with your homestead
serving as collateral. You may then advance the entire limit, or have the
flexibility to advance funds, up to the established limit at a time in the
future when you may need them. State law however mandates that a minimum
advance of $4,000.00 is required.
Is
the interest rate lower than other loans?
Yes. Houston Police FCU is proud to offer our members these loans at incredibly
low variable rates. – Rates are based on credit history.
How
are rates determined?
All Home Equity Line of Credit loans will be variable and could adjust quarterly.
The index used to determine our rates is the Wall Street Journal Published
Prime Rate on the 15th of each month. This index, adjusted with a stated
margin based on credit history, will determine your rate.
Are
there any fees or closing costs?
No, Houston Police FCU does not charge any fees or closing costs to the
member.
What
is the limit for borrowing?
The minimum Home equity Line of Credit loan is $10,000. Texas Law states
the maximum Home Equity Line of Credit cannot exceed 50% of the fair market
value of your homestead. (Example: Value of Homestead x 50%=maximum limit
you can establish on HELOC) However, your entire indebtedness against your
homestead cannot be more than 80% of the fair market value on the date the
line of credit is established.
How
do you determine how much my homestead is worth?
You can use a County Tax Assessor’s appraisal or a certified appraisal
that is no older than 6 months. However, any loan in excess of $50,000 will
require a certified appraisal which the Credit Union will assist you with.
Why
should I choose a Home equity line of credit?
A home equity line of credit gives you more control over your finances by
allowing you access to your home’s equity when and how you need it.
If
I have a Home equity loan, can I change to a home equity line of credit?
If you have had your loan for at least 12 months, you may be able to refinance
with a home equity line of credit.
Will
HPFCU still be offering the traditional Home Equity loan product?
HPFCU offers both HELOCs and closed end Home equity loans so you as the
member can choose the option that is best for you. However, state law mandates
that you may have only one Home Equity loan of either type at a time.
If
you are interested in a Home Equity Line of Credit Loan, please come in
to our Memorial Drive location and talk with a Loan Representative for complete
details. We will be happy to answer any questions you may have!
.