Home Equity Line of Credit (HELOC) - Members Heritage Credit Union

The Benefits of a Home Equity Line of Credit

Borrowing against the available equity in your home will allow you to fund those much-needed home improvement projects, consolidate debt, pay for college, and more. No matter how you use it, a Home Equity Line of Credit makes it convenient and affordable to access cash.

Our Home Equity Lines of Credit come outstanding benefits, including:

Competitive Rates

Loan-to-Value Ratio Up to 100%

No Application or Processing Fees

Checks for Convenient Access to Funds

No Prepayment Penalty

7-Year Draw & 15-Year Repayment Period

Available in KY and IN, only.

Apply Online – Individual Applicant

Apply Online – Joint Applicants

Print an Application

You can email the completed application to HEprocess@mhcu.org

Questions: Contact the Lending Department at 800.359.3466 x 7374

Testimonials

W. B.
“Been with MHCU for 35 years, since it was known as the IBM Employees Federal Credit Union. No reason to bank elsewhere. They have serviced all my share account and loan needs; on my 4th home mortgage with them.”

How Home Equity Lines of Credit Work

With our Home Equity Line of Credit, you have a 7-year period where you can draw freely from the available funds. Then, once that period concludes, the 15-year repayment period begins. However, since there are no prepayment penalties, you do not need to take the full 15 years to repay the loan.

Here are some additional loan details you should know:

The minimum loan amount is $10,000.
The minimum 1st-time advance is $500.
Subsequent advances can be $100 or more.
You’ll get easy access to your funds through your Share Draft (Checking) Account.
The property deed associated with this loan must be in your name, and the title must be clear.
The property must also be your primary residence.

If you want to learn more about Home Equity Lines of Credit, we recommend a helpful guide from the Consumer Financial Protection Bureau. You can click here to access it.

Please let us know if you have any questions after reading through this overview. Your financial success is our priority, so we’re here to provide you with information to help you make the best decision for yourself and your family.

Home Equity Lines of Credit FAQs

What factors determine my Home Equity Line of Credit interest rate?

Like any loan, your interest rate is determined by factors like your debt-to-income ratio, income, credit history, and more. Generally, the higher an applicant’s credit score and lower their debt-to-income ratio the better rates they will be able to access.

How much money can I borrow with a Home Equity Line of Credit?

Your loan amount is calculated based on the amount of equity you currently have in your home and how we’re able to determine your property value.

How is the property value of a home determined?

Either the most recent tax assessment or a full appraisal ordered by the Credit Union will be used to determine your property’s value. However, a certified full appraisal is required if a loan is over $250,000.

If tax assessment is used, the maximum loan to value is 75% of the tax assessment. In that case, current property pictures, both front, and back, will be required. If the appraisal is used, the maximum loan to value is up to 100%

Are there any tax advantages with a Home Equity Line of Credit?

Sometimes, the interest you pay on this loan is tax-deductible, but it’s best if you consult with your tax advisor for confirmation on your unique tax situation.

What can a Home Equity Line of Credit be used for?

They are best utilized for financing expenses with no set budgets or time frames. Ongoing medical expenses, remodeling or home renovations, or college tuition are just a few of the many things you can fund with a Home Equity Line of Credit.

Ready to Apply for a Home Equity Line of Credit?

A Home Equity Line of Credit can be an excellent tool for helping you achieve your financial goals. If you’re ready to put your home equity to work for your needs, apply today or reach out to us for assistance. We’re here as your financial partner and neighbor in Lexington.

Apply Online – Individual Applicant

Apply Online – Joint Applicants

Print an Application

You can email the completed application to HEprocess@mhcu.org

Questions: Contact the Lending Department at 800.359.3466 x 7374

^*APR=Annual Percentage Rate. This credit union and its policies comply with the Equal Credit Opportunity Act. All credit offers and rates subject to approval.