Turn Your Home’s Equity Into Cash
Using a home equity loan can allow you to use the old borrowing power you have from equity in your home.
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Home Equity
as low as
7.50
%
APR
The APR (Annual Percentage Rate) is effective as of 07/01/2024. Rates range from 7.50% to 12.50% APR with terms up to 20 years. The property must be owner-occupied; mobile and manufactured homes are not eligible. Upon submitting an application, you may qualify for a higher or lower loan amount and/or higher APR. The APR is determined by various factors within Arkansas Federal’s custom scoring model, including, but not limited to, credit score, credit history, income, and debt-to-income. You must have a minimum household annual income of $25,000, be over 18 years of age, and have a valid U.S. Social Security Number to be considered for an Arkansas Federal loan. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history, and application information meet all requirements. Home Equity Loans are available for up to 95% of your home’s value minus your mortgage balance. If a member closes their loan within the first 24 months, all associated processing costs (such as appraisal, flood certification, title search, etc.) will be added to the loan payoff amount. However, if the loan is closed after 24 months, these fees will not apply. Offer and rate advertised are subject to change without notice. Membership with Arkansas Federal is required.
%
APR
Turn your home's value into cash!
Wanting to tackle a home project, fund a vacation, consolidate debt, or even plan a dream wedding? With Arkansas Federal Credit Union, using the value of your home couldn’t be easier or more affordable. Even if you have no intention of selling your home right now, today’s hot housing market can lead to increased equity that you can use for a variety of projects or other financial needs.
Use the funds for anything:
- Home Improvements
- Debt Consolidation
- Vacation
- A Dream Wedding
- Emergency Fund
- Or anything else
Features & Benefits
No Change to Mortgage
Keep your current mortgage rate and term while accessing equity (a separate loan).
Up to 95% Financing
Borrow up to 95% of your home’s value—much more than the max 85% of most lenders.Borrow up to 95% of your home’s value, minus your mortgage balance.
$0 Application Fee
There’s no cost to get pre-qualified. That’s a savings of $500!
More Great Benefits
Use the money for anything.
Use your money for just about anything—home improvements, debt consolidation, vacation, a dream wedding, emergency funds, or anything else.
Larger borrowing potential.
Depending on the amount of equity in your home, you might be able to obtain larger sums not possible through other types of loans, such as personal loans.
Get one lump sum.
Once approved, you’ll enjoy one lump sum to repay monthly.
Stable, fixed rates.
Regardless of what happens in the market, your rate won’t change.
Lower rates.
With a home equity loan, you can enjoy a lower rate than most credit cards or personal loans.
No prepayment penalties.
Want to pay your loan back faster? No problem. We won’t charge any fees for paying it back sooner.
Same, consistent monthly payment.
Since your rate remains fixed, your monthly payment will also remain the same throughout the life of the loan.
Tax advantages.The interest on a home equity loan may be tax-deductible, provided the funds were used to buy or build a home or make improvements to one, as defined by the IRS. Consult with your tax advisor regarding tax deductions as tax rules change.
Your loan may be tax deductible if you choose to use the funds to improve your home.The interest on a home equity loan may be tax-deductible, provided the funds were used to buy or build a home or make improvements to one, as defined by the IRS. Consult with your tax advisor regarding tax deductions as tax rules change.
Questions? We have answers!
What is home equity?
“Home equity” may sound complicated, but it’s actually simple. Home equity is the value of your home minus what you still owe on your mortgage. So, if your home is worth $200,000, and you owe $150,000 on your mortgage, you have $50,000 in equity. The real question is—what could you do with your home’s equity?
What’s a Home Equity Loan?
A Home Equity Loan allows you to get a lump sum amount upfront to repay monthly with fixed, predictable payments.
How much can I borrow?
With Arkansas Federal, you can borrow up to 95% of your home’s value.Borrow up to 95% of your home’s value, minus your mortgage balance. For example, if your home is valued at $200,000, you could potentially borrow up to $190,000—assuming your mortgage is paid off. If you owe on your home, just subtract your remaining balance from that amount. For instance, if you owe $150,000 on your mortgage, you could apply for a home equity loan of up to $40,000, totaling $190,000—95% of your home’s value.
What about fees?
There’s no application fee – that’s a savings of $500! We also don’t charge an origination fee. It’s all part of our goal to save you money!
What happens to my mortgage?
Absolutely nothing. Your mortgage remains untouched. A home equity loan is separate from your mortgage, so you’ll keep your current mortgage rate and term.
Are there other options?
Our fixed-rate home equity loan is a great option if you want the stability of a monthly payment that will not change over the life of your loan. But we also offer variable rate Home Equity Lines of Credit (HELOCs) with more of a revolving credit line, similar to a credit card. If you’re not sure which one is right for you, give us a call at 800.456.3000, and we’ll go over your options.
Is a Home Equity Loan tax deductible?
Depending on how the funds are used, you may be able to deduct the interest paid on your loan. Consult with your tax advisor regarding interest deductibility as tax rules change.The interest on a home equity loan may be tax-deductible, provided the funds were used to buy or build a home or make improvements to one, as defined by the IRS. Consult with your tax advisor regarding tax deductions as tax rules change.
