Home Equity

You put a lot into your home. It’s time you got a lot out of it.

Whether you’re in the market for an equity line or loan, Chartway helps you put your home’s equity to work. With low rates and flexible terms, we help you choose the right home equity option to finance your dreams—whatever they may be.

Home Equity Loan vs. Line of Credit vs. Mortgage

Home Equity Loan

A home equity loan is only available to those who have already accrued equity in their property. They are usually referred to as second mortgages because most people get them in addition to a regular mortgage. The interest rates are typically higher and terms vary from 5 to 15 years.

The loan amount is determined by subtracting the property value from the mortgage balance and is secured by the resulting sum. Theoretically, if your property value is $250,000 and the remaining mortgage balance is $150,000 you should qualify for a $100,000 home equity loan. However, if you credit score is not in good standing you could only be eligible for a fraction of that.

A home equity loan is typically used for making property improvements or consolidating debt. E.g. Adding a garage, porch, renovating a kitchen, etc.

Questions about home equity loans?

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Home Equity Line of Credit (HELOC)

Similar to a home equity loan, a home equity line of credit (HELOC) is only available if there is existing equity in a property. A HELOC loan works something like a credit card. You can borrow as much or as you need over a period of time, paying interest only on what you borrow.

Typically the draw period is about 10 years but can be as long as 20. The loan can be paid back in monthly installments or lump sums. One of the drawbacks to a HELOC loan is that it typically has a variable interest rate, however we also offer fixed rates for added flexibility and predictability.

A home equity line of credit is typically used for renovations with different lengths. E.g. replacing a bathtub vs. remodeling the kitchen.

Questions about home equity lines of credit?

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Mortgage Loan

Unlike the previous two a mortgage loan does not require equity in a property, but could require a large cash investment. On average lenders typically provide loans for about 80% of a homes appraised value, leaving you to provide the rest. FHA loans provide a little more, so don’t worry if you don’t have 20% to contribute.
The interest rates can either be fixed or variable with most people opting for fixed. You also have a choice in the term or payback period. Most mortgages offer either a 15 or 30 year term, with most people opting for 30.

A mortgage loan is used to purchase real estate property. E.g. house, condo, townhome, etc.

More About Mortgage Loans

interest only home equity loan

Interest-Only Home Equity Line

Our Interest-Only Home Equity Line of Credit (HELOC) provides you with the financing you need to achieve your goals and gain more control over your budget.

We offer low monthly payments, and the option of paying only the interest and as much principal as you want over a 15 year period.*

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How can a Home Equity Line benefit you?

Sometimes you need a little extra money to make the dream work. The earned equity on your home is there for you to use. So make the most of it, with a Chartway HELOC. Whether you're facing college expenses, making value-enhancing home improvements or simply financing that dream vacation, we'll help your equity turn your dreams into reality. And even better, depending on how you use your home Equity Loan, the interest may even be tax deductable.**

Benefits include:

  • Quick, easy access to funds
  • Online money transfers
  • No annual fees

*Introductory Rate: APR = Annual Percentage Rate. This product is not available for properties in Texas. Rate is currently as low as 5.25% APR with loan-to-value less than or equal to 80%. Not all borrowers will qualify for the lowest rate. Rates effective 08/19/2019 and may change or end at any time. Promotional rate for new loans only. Promotional introductory rate begins at closing and is available for six months. Terminates at the end of six months and applies to all loan balances, regardless of when the balances were added to the loan. Interest only payments for fifteen years. Minimum equity line or loan of $10,000. Equity lines are variable based on prime and are subject to change after opening. Fees, generally ranging from $300 to $850, may be incurred. Property insurance required. Maximum rate of interest established according to applicable state laws. For second mortgage requests on property/collateral outside of VA, NC, UT, and TX, the applicant is required to have been a member of the credit union for a minimum of 12 months prior to the loan request. Equal housing lender.

**Consult your tax advisor regarding the deductability of interest. Some restrictions may apply. For complete details and full disclosures, contact us today.

Today’s Rates

Table data for Home Equity Rates
 Effective 09-21-2019
Term Max LTV1 APR (As Low As )2 Alert Me
Equity Loan Up to 240 mos 95% 5.00% Receive a notification when this rate changes
Variable with Fixed Rate Option3 -- 95% 5.25% Receive a notification when this rate changes
Fixed Rate Option Up to 180 mos -- 5.00% Receive a notification when this rate changes
Click here for Required Disclosures
Requests for maximum LTV will be considered on a case-by-case basis. Up to 95% LTV financing is available on single family detached residences in all states except Texas, and is based on credit qualifications. Up to 80% LTV financing is available on single family detached residences in Texas, and is based on credit qualifications. All rates and terms quoted above apply to properties that are occupied by the borrower.
1Loan-to-value
2Annual Percentage Rate
3Annual Percentage Rate may vary. Rates subject to change after opening. Fees, generally ranging from $300 to $850, may be incurred. Maximum APR is 18%.