Interest-Only HELOC Payments from Mutual Savings Credit Union
Mutual Savings Credit Union members can now enjoy the savings benefit of interest-only payments for their Home Equity Lines of Credit. This offer can be especially helpful to members that are anticipating big plans or projects this summer.
WHAT IS A HOME EQUITY LINE OF CREDIT?
Unlike loans that provide borrowers with a fixed amount of money and a set monthly payment, Home Equity Lines of Credit, or HELOCs, give access to an approved loan amount that you can draw down, or use, in desired amounts as needed over a defined period of time. HELOCs are secured by your home’s equity, which is a term that relates to your home’s value and the remaining balance on your mortgage.
WHY USE A HELOC?
Because of the larger amounts associated with HELOCs, these loans are great for:
- Paying off credit card debt or other expenses;
- Purchasing a car, motorcycle or ATV;
- Funding home renovation projects;
- College tuition;
- Plus other purchases.
DRAW PERIOD, MATURITY AND INTEREST RATES
Draw periods refer to the period of time during which borrowers can draw money from their HELOC. Your HELOC’s monthly payment is based the outstanding balance each month. This limited-time offer from Mutual Savings helps members save money with interest-only payments over a 10-year draw period.
The maturity of your HELOC refers to the time at which repayment of your HELOC is due. Mutual Savings offers a 15-year maturity on HELOCs that feature interest-only payments**.
Interest rates for MSCU’s interest-only HELOC payments are as low as 3.25% APR* and you can finance up to 90% of your HELOC without private mortgage insurance, which is often required by other financial institutions and adds costs to your bottom line.
Mutual Savings Credit Union will waive the closing costs for new HELOCs that feature a $15,000 advance. Members that have existing HELOCs financed by MSCU can take advantage of this offer and refinance their HELOC to feature interest-only payments.
This special HELOC offer featuring interest-only payments cannot be used in conjunction with a first mortgage for the purpose of purchasing a home. For full details about this offer, including information about fees and other requirements, please contact the Mutual Savings Credit Union Real Estate Lending Department by calling (800) 950-6728 or emailing firstname.lastname@example.org.
*APR = Annual Percentage Rate. Rates are based upon applicants past credit performance and length of repayment terms which may cause your rate to differ. Loan features a variable rate which is linked to Prime and can feature a rate as high as Prime plus 2.25%. Closing costs for new HELOCs paid by MSCU for loans that feature a $15,000.00 advance. For existing MSCU HELOCs, MSCU will pay all closing costs (except appraisal, if required). Loan is subject to penalty fee if principal balance is below 75% of initial advance or paid in full within one year of loan date. Normal credit qualifications apply. Other restrictions may apply. Offer is for a limited time only. Please see a Mutual Savings Representative for full details.**A balloon payment on the total amount owed will be due at the end of the 15-year repayment period.