Home Equity Loans

FAQ about Credit Union Home Equity Loans

• What is home equity and how do I know if I have any?

  Home equity is the difference between the current market value of your home and your current mortgage balance.
  
  When you apply for a home equity loan we’ll figure out exactly how much equity you have, and how much you’re eligible to borrow.

• How does a home equity loan work?

  Here's what happens when you get a home equity loan:

  1. Log into JHFCU Online Banking to apply for your home equity loan – the application process takes just a few minutes.

  2. We'll review your credit report and online property valuation, and quickly get back to you with your loan decision and initial loan amount.

  3. You’ll provide proof of income and we’ll order a title search, then schedule a settlement dat so you can access your funds.
     
     From start to finish, the whole process takes just a few weeks! 

• What can I use a home equity loan for?

  You can use your home equity loan for a wide range of purposes including:

  • Home improvements, renovations, and remodeling

  • Debt consolidation of high-interest credit cards and other loans

  • Vacations and weddings

  • Medical and dental bills

  • Car repairs and appliance replacement

  • Unexpected expenses and emergency funds

• What do I need to apply for a home equity loan?
  A home equity loan is sometimes called a second mortgage. However, the home equity loan application process is much simpler than a first mortgage. In most cases, all you’ll need is proof of income, such as a recent pay stub.
• What rate will I get?

  The rate you get for your home equity loan is based on your credit score and your loan-to-value (LTV) ratio. Your loan-to-value ratio is the balance of all mortgages on the property as a percentage of the home’s value. The term you choose also impacts your rate.

  • Higher credit scores get lower rates.

  • A lower LTV gets a lower rate.

  • Shorter terms get lower rates.

• How do I know which loan term to choose?

  Different terms bring different rewards. At JHFCU, you can choose a home equity loan term of between 5 and 15 years.

  • Shorter terms mean you'll get a lower rate and pay off your loan sooner, but your monthly payment will be higher. 

  • Longer terms mean you'll get a slightly higher rate and pay more total interest over the life of the loan, but your monthly payment will be more affordable. 

  You can talk to one of our experienced loan officers to find the right term for you.

• How can I make my home equity loan payments?

  There are many options for making a payment to your JHFCU home equity loan:

  Online Transfer: Set up a recurring transfer or make a one-time transfer online from your checking, savings, or another transactional account to your mortgage account. Payments are credited and account balances are updated immediately. 

  JHFCU TeleBranch 24: Transfer your payment from a JHFCU account to your mortgage; just use your loan suffix number between 70 & 77 (EX: XXXXXXXXX-XX.)

  Pay Online from an Outside Bank: Set up JHFCU as a payee using your 9-digit JHFCU Account number - 2-digit loan suffix number between 70 & 77 (EX: XXXXXXXXX-XX.) 

  Pay by Check at a Branch or via Mail

  Pay by Transfer In-Person

  Payroll Deduction Payments

  NOTE: When setting up Online Bill Payment from an outside account, use JHFCU’s main address, 2027 E Monument St, Baltimore, MD 21205
• Do I need to be a member of Johns Hopkins Federal Credit Union to get a home equity loan?

  Yes, you'll need to become a member first. Joining is quick and easy, see our eligibility requirements and fill out your application here!