The ability to access equity built up in a home is one of the many benefits available to homeowners. With the assistance of a home equity line of credit, homeowners can utilize affordable, flexible financing for a wide range of life’s expected or unexpected costs. Taking a family vacation, consolidating higher interest rate debt or funding a home renovation or other major purchase can be covered through a home equity line of credit, and this is a smart alternative to personal loans or credit cards when interest rates and closing costs are relatively low.
ESL Federal Credit Union is currently offering its homeowner members a home equity line of credit with a promotional interest rate as low as 1.25% for the first six months after closing. To qualify for the lowest promotional rate, homeowners must apply and be approved by November 7, 2015, and have a loan-to-value ratio of up to 80%. Borrowers with a higher loan-to-value ratio may qualify for a higher interest rate on a new home equity line of credit. After the introductory rate period ends, borrowers can expect a variable interest rate based on the published Prime Rate (currently at 3.25%) plus margin, but rates cannot exceed 15.9%.
A minimum credit line of $5,000 is required for all new applications receiving the lowest promotional rate available. Home equity lines of credit are based on the borrower’s credit profile, including credit score, repayment history and other debt obligations due each month. Borrowers must maintain the appropriate property and flood insurance as it applies to their property, also. ESL Federal Credit Union pays for all closing costs and application fees at the time a new home equity line of credit is established, but if the credit line is closed within the first three years, borrowers will be responsible for reimbursing those costs.
ESL Federal Credit Union also requires membership to be eligible for a home equity line of credit as well as other bank or lending products. Individuals are eligible if they fall into one of the following categories:
ESL Federal Credit Union has a longstanding history in the Rochester, New York region, and currently manages over $5.0 billion in deposits from its 325,000 members. The credit union offers 20 full service branch locations in the area, as well as a vast network of fee-free ATMs.
Homeowners interested in ESL Federal Credit Union and its promotional interest rate on a home equity line of credit can visit any branch location, may call a loan representative at 800-848-2265, or may gather additional information or apply online.
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