Dianna C. Wilson, manager, Mortgage Operations 2nd Trust Lending Division speaks about home equity loans and home equity line of credit (HELOC)
A home equity loan is a loan where the borrower uses the equity in their home as collateral and it’s often referred to as a 2nd mortgage.
Equity refers to the appraised value of your home minus any debt you have secured against the property.
Equity loans are a great option for one-time expenses while the line of credits are a great resource for ongoing expenses or for emergency situations.
We have a few different loan options with our lines of credit. You can choose between an interest-only line of credit or a line of credit where you pay principal and interest.
Some of the advantages of PenFed’s home equity products are that we pay all of the closing costs, with the exception of the appraisal fee if an appraisal is needed. We have no pre-payment penalties and there are no inactivity fees.
A good candidate for a home equity loan is someone who, one, has equity in their home, and pretty much anyone who wants to take advantage of a low-interest rate product.
To learn more about our home equity loans, visit our home center on PenFed.org or call 1-800-247-5626.
Equal Housing Lender
Federally Insured By the NCUA
