Your home equity is measured by subtracting the amount you still owe on your primary mortgage from your property’s appraised value. For example, if your property is appraised at $250,000 and you have a mortgage balance of $150,000, you have $100,000, or 40% of your home’s value, in equity.

For NCPD Federal Credit Union HELOCs or home equity loans, you must maintain at least 30%
of your home equity after borrowing against it. In this example, you would be eligible to borrow $25,000 (70% of the value of the home, minus the current mortgage).

While both financing options are secured by the equity in your home, a home equity loan provides
a lump sum with a fixed interest rate, whereas a HELOC offers a revolving line of credit with a variable interest rate.

With a conventional HELOC from NCPD Federal Credit Union, you benefit from a low introductory rate for the first two years before it adjusts to the prime rate. You pay down your principal more quickly, while still benefiting from a period of lower payments.

With our interest-only HELOC, you’re only required to make payments toward interest, not the principal balance, during the 10-year draw period. You can choose to make payments to lower your principal during the draw period, but you don’t have to, giving you more flexibility in your budget. When the repayment period begins, you’ll need to make payments on the interest and the principal.

The prime rate is published in the “Money Rates” section of the Wall Street Journal and may change each month. You can check NCPD Federal Credit Union’s current rates online.

See Rates

Please don’t hesitate to contact our Plainview location at 516-938-0300 for more information about home equity loans or lines of credit or to start the application process. You can also email us at loans@ncpdfcu.org and we will answer as soon as possible, typically within a few business days.