Fixed-Rate Home Equity Loan (2nd Mortgage)
Facing a major purchase? Put your equity to work!
When you're facing a large purchase, don't overlook funding that might be right at your fingertips! Our Fixed Rate Home Equity Loan, also known as a Second Mortgage, lets you use the equity you’ve built in your home as a source of financing. Whether you need a set amount of money for a one-time major expense such as installing a pool, replacing a roof, taking care of home improvements, or even a special event like paying for a wedding, our Home Equity Loans can give you the security of knowing you’re getting the most from your investment. With competitive fixed rates, you can budget and plan your purchase knowing you're putting your equity to work for you. Plus, with No Closing Costs17 on most equity loan options, we make it easy to get fast access to that cash!
Up to 20 Years
|Term||Rate "As Low As"||APR* "As Low As"||Example Loan Amount||Example Monthly Payment|
|0 to 60 Months||6.490%||6.490%||$25,000||$489.04|
|61 to 120 Months||6.990%||6.990%||$25,000||$290.14|
|121 to 180 Months||7.490%||7.490%||$25,000||$231.61|
|181 to 240 Months||7.740%||7.740%||$25,000||$205.08|
Your actual interest rate will be based on the available equity in your home, the amount of your loan, your credit history, and product chosen. Other programs, rates, and terms may be available. Approval is subject to our usual credit criteria. Proof of homeowner’s insurance sufficient to cover all outstanding mortgages, including your SCCU equity loan, and any other obligations secured by the home and property, is required. Certain restrictions may apply. Taxes and insurance not included; your actual payment obligation will be higher.
No Closing Costs (Home Equity Loans): SCCU will waive typical third-party fees associated with closing a Home Equity loan, such as appraisal, photo inspection, recording, state tax stamps, title exam, and title insurance. Must be primary residence. Available on loans up to $250,000. For Fixed-Rate Home Equity Loans (2nd Mortgages) in the first lien position, valued at $50,000 or more, waived costs do not include prepaid escrow amounts. Additional fees may apply for loans over $100K, and/or for special Deed preparation requirements.
You must already be a member of the credit union, or establish membership, which requires a one-time $5 deposit to open and maintain a regular savings account. Offers and rates subject to change at any time.
Frequently Asked Questions
A fixed-rate home equity loan allows you to borrow against the equity you've built up in your home at a fixed interest rate and a consistent monthly payment for the life of the loan. Fixed-rate home equity loans are also known as second mortgages, and are much like first mortgages since the loan is secured by your home.
Depending upon the lender, there may be closing costs plus other fees required to secure a second mortgage. These may include an appraisal fee, origination fee, credit report fee, title search, fees to prepare documentation, and more.
At SCCU, we offer low-cost, fixed-rate home equity loans with no points, origination fees, intangible tax, or other hidden fees.
If you are considering taking out a second mortgage on your home, you will need to meet the same requirements that you met for your first mortgage, such as satisfying a certain credit score. In addition, you will also need to be current on the payments on your first mortgage, and have enough equity in your home to meet your lender's loan-to-value requirements. Other considerations include having your home appraised to verify its value, the lender's required minimum loan amount, closing costs and more.
If you'd like to learn more about qualifying for an SCCU home equity loan with fixed monthly payments, contact us for more information. We offer fast approval decisions, quick closings, and competitive rates, plus there is no intangible tax, origination fees, points or hidden fees.
Yes! At SCCU, we offer home equity loan refinancing in addition to fixed-rate home equity loans. Refinancing your current second mortgage can be a great way to take advantage of lower second mortgage rates.
Obtaining a fixed-rate home equity loan (2nd mortgage) or a HELOC based upon the current value of your home requires requires some form of validation to ensure it has sufficient equity to meet your lender's requirements.
To qualify for a fixed-rate home equity loan (2nd mortgage) or a HELOC, you don't necessarily need to have your home appraised. If home value is necessary to finalize the loan, there are other validation methods that lenders can use. To see if you qualify for a fixed-rate home equity loan (2nd mortgage) or a HELOC, apply online or by phone.
If you're ready to take advantage of SCCU's great rates, quick approval decisions and fast closings, apply online today! You can also call our Express Services team.
Some of the information you'll need to apply for a second mortgage include:
- Your current residence address or addresses for the past two years
- Social Security numbers for all borrowers
- Your past two years' employment history and employer's contact information
- Income information for each borrower, such as salary, overtime, and bonuses
- The current loan balance and payment amount on your existing mortgage
- Information on your bank and brokerage accounts, including current balances
Space Coast Credit Union is unable to provide a Home Equity Loan (Fixed 2nd Mortgage) or a HELOC for properties outside of the state of Florida.
Determining how much you can borrow with a fixed-rate home equity loan or other loan based on your equity is relatively straightforward: It depends upon how much you owe on your first mortgage and the current value of your home. What percentage of your equity (the current value less the outstanding balance on your loan) a lender allows you to borrow is a factor as well.
At Space Coast Credit Union, our home equity loans allow you to borrow up to 80% of the value of your primary home, investment and vacation properties.
Taking out a second mortgage results in having two mortgages on your home and two monthly payments. With refinancing, however, you are obtaining a single, entirely new loan and will have one payment.
If you already have a second mortgage and are looking to refinance it, SCCU can help! To learn more about SCCU's fixed-rate home equity loans or if you want to refinance your current first or second mortgage, please contact us. Our Express Services team will be glad to answer all of your questions.
Every type of loan has its pros and cons, some of which depend upon your personal financial goals for borrowing. In the case of home equity loans or home equity lines of credit, you use your home as collateral for the loan, so should you default on it, your lender may foreclose.
Borrowing against the equity in your home may put you at a disadvantage if your home's value decreases, which could leave you owing more on it than it is worth.
If you are looking for a loan that doesn't use your home as collateral you may want to consider a personal loan or credit card depending on your financial needs and goals. If you have additional questions reach out to us by online or by phone and a Express Services Team Member can help.
A home equity loan or second mortgage may offer a convenient way to pay for one-time, large expenses, such as home repairs or renovations, education, or consolidating debt at a lower interest rate.
Both types of loans allow you to borrow against the equity you've built up in your home, but there are a few important differences between the two:
- Home equity lines of credit (HELOCs) make a certain amount of money available to you. You may draw funds from the specified maximum amount of the credit line as you need them and pay interest only on the amount you borrowed.
- Most HELOCs have an adjustable rate, but lenders may offer the option to convert a HELOC to a fixed rate. When the interest rate is adjusted, your monthly payment amount may go up or down accordingly.
- Fixed-rate home equity loans allow you to borrow a single, lump sum at one time.
- Fixed-rate home equity loans have an interest rate that will not change over the life of the loan, so you will always know how much your monthly payment will be.