Fixed Home Equity FAQs

Fixed Home Equity Loan

Q. What exactly is an Fixed Home Equity Loan?

A. Commonly known as a second mortgage loan, a TPS Credit Union Equity Cash Loan provides a specifically requested amount of cash that is to be paid back over a specific period of time. The amount you borrow is secured by the equity you have in your home.

Q. What is the maximum amount I may borrow?

A. If approved, a member may borrow up to $250,000. The minimum amount that can be loaned under the equity cash plan is $5,000. The maximum amount of your Fixed Home Equity Loan will be determined by your ability to repay, credit history and 80% of your home's appraised value, less any outstanding mortgage balance.

Q. How is the amount I may borrow determined?

A. The credit union orders an appraisal of your home by a certified appraiser. The appraised value is multiplied by 80%. From this figure, any outstanding mortgages you have on the home are subtracted. The resulting figure is the maximum amount for which you may apply. Your application is then evaluated on various credit criteria and your ability to repay the loan at the risk based interest rate being charged.

Q. Are there any fees involved with applying for and receiving an Fixed Home Equity Loan?

A. An application fee is currently being waived, if however, the loan is paid off within 3 years or less you will be charged for the original cost to secure the necessary title verification and appraisal of your home, and to pay any recording fees.