Home Equity Loans
EChoose a home equity loan for an affordable way to fund home improvements, vacations, weddings, tuition, and more.
Benefits of a Telcoe Federal Credit Union Home Equity Loan
Low, Fixed Rates
Get a competitive APR1 that's lower than personal loans or credit cards.
Broad Range of Terms
Choose a loan term between 1 and 15 years.
Low Closing Costs
We keep fees to a minimum so more of your cash goes in your pocket.
No Prepayment Penalty
Pay off your loan whenever suits you.
Key Details About Home Equity Loans in Arkansas
If your home has increased in value or you've paid down a significant chunk of your home loan, you probably have equity sitting in your home waiting to be put to work.
- Tap into your home equity to pay for anything you need,
- Home remodeling and repairs
- College tuition
- A new car
- Bill/debt consolidation
- And much more!
- Competitive, fixed rates with APR starting at 5.30%.
- Terms from 1 to 15 years to suit your goals
- Low closing costs because we're a not-for-profit organization
- Monthly payment is fixed over the term of the loan so budgeting is easy
- The interest on your loan may be tax deductible1 if used for improvements
- No prepayment penalties
A home equity loan helps you achieve your financial goals and cross off your bucket list at the same time.
Rates for Arkansas Home Equity Loans
|Home Equity Loan||5.30%|
Rate as of: 12-5-22
See Our Simple Home Equity Application Process
"Absolutely love Telcoe Credit Union. They always offer great financial solutions and they treat all of their members like family. I would highly recommend Telcoe to anyone who wants a financial institution where you can make more on your money!"
– Lisa H., Little Rock, Arkansas
FAQ About Home Equity Loans in Arkansas
What is home equity and how can I calculate it?
Equity is the difference between what your house is currently worth and how much you owe on your mortgage. To get an idea of how much equity you have, you can do this simple calculation:
- Find out the current market of your home. For example: $300,000
- Subtract your current mortgage balance. For example: $200,000
- You have $100,000 equity.
- Now divide your equity by market value to get your equity percentage. For example: $100,000/$300,000 = 0.33%
How much home equity do I need to get a home equity loan?
You generally need at least 15% to 20% equity to qualify for a home equity loan and you may be able to borrow between 80% and 95% of that amount. You can't usually borrow the full equity amount to allow for drops in the housing market.
What can I use home equity loan funds for?
You can use your home equity loan to pay for just about anything you need. Here are a few common ways people use their funds:
- Home improvements, remodeling, and repairs
- Car repairs or buying a new car
- Appliance replacement
- Vacations, weddings, and family celebrations
- Consolidating high-interest credit cards and loans into a simple easy payment
- College tuition and living expenses
- Business development
- Medical, vision, and dental expenses
- Emergency fund
- Everything else you need financing for
What's the difference between a home equity loan and home equity line of credit (HELOC)?
Both these financing options offer ways for you to tap into your home equity but there are a few key differences.
A home equity loan is an installment loan:
- You get a lump sum payment to use right away
- You make equal monthly payments for easy budgeting
- Your interest rate is fixed and your monthly payments stay the same
By contrast, a HELOC is like a credit card and your monthly payments go up and down depending on what you spend. You also need to be careful not to use all your HELOC so your credit utilization rate stays low.
Ready to Take Your Home to the Next Level?
1 Consult a tax advisor regarding deductibility of interest..
2 Maximum loan amount $50,000. Maximum 90% TLTV. Monthly payments include principal and interest and may be lower or higher depending on your loan amount, APR and term. Your APR will be based on the specific characteristics of your credit transaction, including evaluation of credit history, combined loan-to-value, property type, amount of credit, term and geographic location. Hazard and, if applicable, flood insurance required. Membership eligibility is required. Rates based on term, property type, credit history and loan-to-value. Rates are subject to change at any time.