Home equity line of credit (HELOC)

Common uses for a home equity line of credit include:

— Medical expenses

— Education expenses

— Home improvement

— New automobile purchase

— Consolidating bills

— Being prepared for the unexpected

Here are the benefits and details you need to know:

— A revolving line of credit that uses your home as collateral

— Borrow what you need and payback that amount

— Similar to a credit card in that if you don’t use it, there are no payments needed

— No annual fee

— An adjustable interest rate that is based on the prime rate as published in the Wall Street Journal on the day of your closing

— Interest rate can change monthly

— Lifetime interest rate cap of 18%

— Maximum loan limit is $100,000

— All closing costs are paid by PFCU

— Expenses outside the HELOC, such as appraisals or additional legal fees, are the borrower’s responsibility

— Maximum loan-to-value (LTV) is based on 80% (minus all existing mortgages) of tax assessment or appraised value (whichever is higher)

— Terms shall not exceed fifteen (15) years

— Draw period is five (5) years from the opening date of the account (15-year mortgage)

— Owner-occupied properties only

— PFCU must be in the first- or second-lien position