Home Equity Loans
Unlock the value built into your home with a home equity loan from Harbor Pointe Credit Union. Whether you’re funding a major renovation, consolidating high-interest debt, or covering unexpected expenses, our home equity loan options offer competitive rates and predictable monthly payments to help you make the most of your equity. With clear terms and personalized support from our experienced team, tapping into your home’s value is easier and more affordable. Explore your home equity loan choices and find the solution that fits your financial goals.
Mortgage Rates
Home Equity Line of Credit
A Harbor Pointe Credit Union Home Equity Line of Credit (HELOC) allows you to borrow funds on an as-needed basis against the equity you already have in your home. A HELOC can be used for major home remoding projects, automobile purchase, college tuition, debt consolidation and more.
Save now with No Closing Costs for a limited time!
Benefits include
- Up to 100% Loan to Value
- Ongoing Access to Funds
Flexible fund withdrawal with this convenient revolving line of credit. Transfer funds from this loan to your checking or savings account whenever you need it. As you pay the loan back the funds become available to borrow again for future needs. - Competitive Rate
Low rate margins. At Harbor Pointe Credit Union we strive to stay competitive with all of our loan rates. Save more money when you finance with us. Interest only accrues on balance drawn. - Flexible Payment Options
Payment options can be set up bi-weekly or monthly to fit your personal budget. - Easy Terms
Terms up to 15 years, (5-year draw, 10-year repayment) - Save on Fees, Closing Costs and Taxes
There are no application fees to open your new HELOC. Interest paid on a HELOC may be tax deductible (consult with tax professional).
Use the equity in your home for:
- Home Improvements
- College Tuition
- New or Used Auto
- Vacation
- Emergency Money
- Consolidate and pay off Credit Card debt
- and More!
Call a Harbor Pointe Credit Union lender to open your Home Equity Line of Credit today! 218-722-9242
1 Active checking account required for no closing cost promotion. Harbor Pointe Credit Union reserves the right to end no closing cost promotion at any time.
Mortgage Payment Tips
Do you have a 15, 20 or 30-year mortgage? Would you like to pay it off faster?
Here are a few tips on how using an alternative payment method could reduce the years you pay on your loan while potentially saving you thousands in interest over the life of the loan.
First, let’s take a moment to talk about loan amortization. Amortization is the process of paying debt, over a set period of time, with regular payments. When a mortgage is first established, much of the monthly payment is applied to interest while just a smaller portion of the payment applies to principal balance. As regular monthly payments continue, more of the payment will be applied to the principal balance.
Split Your Payment
You could pay down the principal on your loan faster by making half-monthly payments every 2 weeks, instead of the full payment once per month. Splitting the payment is equivalent to making 1 extra monthly payment each year. (Based on 26 bi-weekly payments equals 13 full monthly payments)
Let’s look at a mortgage scenario:
A $250,0000 mortgage is taken out on a 30-year fixed term at an interest rate of 4.25%. By making the regular monthly payments of about $1,230, the total paid back would be approximately $442,913 in 30 years. Of those total payments, around $192,913 of it is interest.
Now let’s look at that same mortgage, splitting the payment and paying every two weeks:
If you were to split the payment and pay $615 every two weeks, you could reduce the years you are repaying the loan by roughly 5 years. You could also reduce the interest paid by approximately $32,109. Splitting the payment and paying bi-weekly can provide a significant savings to any size mortgage.
Pay Extra Towards Principal
If your monthly budget allows, consider paying extra towards your principal balance each time you make your payment. This will reduce the time it takes to repay your loan, in turn reducing the interest cost of your mortgage. Even a small additional payment, made every month, will help.
Let’s review the savings when extra is made to monthly payments:
We will use the same 30-year mortgage referenced in the scenario above; however, we apply an extra $100 to the payment each month. The extra principal reduces the term by approximately 4 years and interest paid is reduced by about $30,511.
If it fits within your budget, consider splitting and paying every two weeks or adding a little extra to your monthly payment. A little extra can make a big difference in the interest you will pay over the term of your mortgage. If you would like us to run some amortization calculations for you, please give us a call or visit one of our mortgage specialists today.
Check List For My Next Loan
To make your borrowing experience even easier, whether it’s a home loan, car loan, RV loan or whatever your borrowing need may be, here is a check list of items to bring along on your first visit with a loan officer.
- Recent paystubs from your employer(s)
- If you receive other types of income, such as Social Security, pension or disability income bring paystubs
- Your previous 2 years’ W2s
- Self employed? Bring the last two years’ tax records
For home equity loans or mortgages we will also need:
- Property tax statement
- Home owners insurance policy
Glossary of Mortgage Terms
Adjustable-Rate Mortgage (ARM) – A mortgage with an interest rate that may change during the life of the loan according to movements in an index rate. Sometimes called AMLs (adjustable mortgage loans) or VRMs (variable-rate mortgages).
Annual Percentage Rate (APR) – The cost of credit, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees. This allows the buyer to compare loans. APR should not be confused with the actual interest rate.
Appraisal – A written analysis prepared by a qualified appraiser and estimating the value of a property.
Appraised Value – An opinion of a property’s fair market value, based on an appraiser’s knowledge, experience, and analysis of the property.
Closing – A meeting held to finalize the sale of a property. The buyer signs the mortgage documents and pays closing costs. Also called “settlement.”
Closing Costs – Expenses – over and above the price of the property- that are incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area country and the lenders used.
Credit Report – A report detailing an individual’s credit history that is prepared by a credit bureau and used by lender to determine a loan applicant’s creditworthiness.
Down Payment – Part of the purchase price of a property that is paid in cash and not financed with a mortgage.
Equity – The amount of financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on the mortgage.
Escrow – An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit of funds or documents into an escrow account to be disbursed upon the closing of a sale of real estate.
Escrow Payment – The part of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due.
Fixed-Rate Mortgage (FRM) – A mortgage interest rate that is fixed and will not change throughout the term of the loan.
Housing Expense Ratio – The percentage of gross monthly income budgeted to pay housing expenses.
Initial Interest Rate – This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). It’s also known as “start rate” or “teaser.”
Interest – The fee charged for borrowing money.
Line of Credit – An agreement by a financial institution to extend credit up to a certain amount for a certain time.
Loan-to-Value (LTV) Percentage – The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has an LTV of 80 percent.
Lock-In Period – The guarantee of an interest rate for a specified period of time by a lender, including loan term and points, if any, to be paid at closing.
Mortgage Insurance – A contract that insures the lender against loss caused by a mortgagor’s default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency.
Net Worth – The value of all of a person’s assets, including cash.
Origination Fee – A fee paid to a lender for processing a loan application. The origination fee is stated in the form of points. One point is 1 percent of the mortgage amount.
Points – A point is equal to one percent of the principal amount of your mortgage. For example, if you get a mortgage for $165,000 one point means $1,650 to the lender. Points usually are collected at closing and may be paid by the borrower or the home seller, or may be split between them.
Pre-Approval – The process of determining how much money you will be eligible to borrow before you make an offer.
Prime Rate – The interest rate that banks charge to their preferred customers. Changes in the prime rate influence changes in other rates, including mortgage interest rates.
Principal – The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
Principal, Interest, Taxes, and Insurance (PITI) – The four components of a monthly mortgage payment. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the monthly cost of property taxes and homeowners insurance, whether these amounts that are paid into an escrow account each month or not.
Private Mortgage Insurance (PMI) – Mortgage insurance provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.
Qualifying Ratios – Calculations used to determine if a borrower can qualify for a mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio.
Rate Lock – A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate and lender costs for a specified period of time.
Refinance – Paying off one loan with the proceeds from a new loan using the same property as security.
Servicer – An organization that collects principal and interest payments from borrowers and manages borrowers’ escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
Truth-in-Lending – A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.
Underwriting – The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower’s creditworthiness and the quality of the property itself.