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Section contents:
The Home Equity Line of Credit (HELOC) with its generous $650 fee allowance provides a variety of flexible options
to help with home improvements, auto purchases, college education, bill consolidation, weddings, and any number of other significant events that occur in daily living.
Your home and a Northrop Grumman FCU HELOC can provide lower costs and tax deductibility† for virtually every borrowing need.
† Check with your tax advisor for your individual tax situation.
The HELOC provides a revolving line of credit up to $200,000, secured by home
equity. Members accrue interest only on the amount of pre-approved funds used. The HELOC has one of the lowest rates available and a variable rate cap of 3% per year and 6% for the life of the loan.
Members can elect a very low
fixed rate on 60% of the HELOC approved
limit. See more details below.
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Eligibility |
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Qualifying properties include owner-occupied, 1 to 4 units in
Arizona, California, Colorado, Florida, Illinois, Maryland, Oklahoma, Pennsylvania, Virginia and Washington. Subject to credit worthiness, income and equity verification.
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Summary |
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Northrop Grumman FCU HELOC offers cash for any purpose:
- Home improvement
- Autos, trucks, boats, and RVs
- Special vacations
- Unique investment opportunities
- Help building your business
- College tuition
- Consolidate monthly payments
- Pay medical bills
- Meet unexpected obligations
and offers a variety of benefits to members:
Elect
a very low fixed rate:
- Up to 60% of approved limit
- Minimum draw $10,000 per disbursement
- Up to three (3) separate fixed rate
disbursements (no add-ons)
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Rate determined on the 5th of each month
- Fixed
advances must have a due date on or before the maturity date of the
Master HELOC
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Minimum Requirements |
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The following requirements apply to the HELOC:
- $25,000 minimum line of credit
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Frequently Asked Questions |
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Q: In this economy, shouldn't I be afraid of committing myself to another mortgage payment?
A: By using a Northrop Grumman FCU HELOC to reduce your required monthly payments, you can insulate yourself from possible downturns in the economy. And, because your minimum payment is based on the principal outstanding at the time of your last advance, and you can make additional payments toward the principal without penalty, you are in control of the commitment.
Q: What restrictions do I have on how I use the money?
A: None! It's completely up to you.
Q: Are HELOCs expensive?
A: Unlike most lenders, Northrop Grumman FCU offers a generous $650 fee allowance to help minimize and, in most cases, eliminate the fees associated with a HELOC;
and our rates are very competitive.
Q: Does it make it more complicated to sell my house later on?
A: Not at all. You simply pay the balance owed on your line of credit at the time of sale. The paperwork is taken care of by the escrow company.
Q: What is the maximum Home Equity Line of Credit and how is it determined?
A: The maximum loan value is 90% of the appraised value, less the balance of your First Trust Deed/Mortgage loan. The maximum Home Equity Line of Credit is $200,000 and the minimum line is $25,000.
Q: Can I pay off my loan faster than the stated term?
A: Yes, you can pay off your loan faster by either making larger payments than the minimum required or by making payments more frequently than scheduled.
Q: Is there a prepayment penalty?
A: There is no prepayment penalty. Loans can be paid off at any time.
Q: How long does it take to process a Home Equity Line of Credit?
A: Although processing time varies, typically it takes 14 to 30 days to process your loan. However, we can usually give you preliminary approval of your loan within 3 working days (subject to appraisal verification and title search).
Q: Will Northrop Grumman FCU guarantee the initial interest rate through the processing of my application?
A: No; because the index used to calculate the APR is subject to change monthly, your loan rate will not be set until the time of funding.
Q: How often will my payment change?
A: Your payment may be adjusted annually if there is a change in the interest rate. In addition, your payments will be adjusted after each loan advance.
Q: Does Northrop Grumman FCU require an impound account?
A: No, but you are encouraged to accumulate savings for taxes and insurance payments.
Q: Is homeowner's insurance required?
A: Yes, Northrop Grumman FCU requires that you furnish an insurance policy prior to loan funding that is sufficient to cover the replacement value of the property. |