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Harness the power of your home's equity

The equity you've built in your home can be the engine that powers your next dream, whether it's a remodel or addition, a trip, a vehicle purchase, paying off debt, or virtually anything else. Like any engine, you'll need to get it started. For that, there's nothing better than a home equity loan or line of credit from San Mateo Credit Union. Plus, the interest you pay on home equity loans/lines may be tax-deductible.1
 
 

Let's compare home equity options

  Home Equity Loan Home Equity Line of Credit (HELOC)
Why choose this loan type? You have a specific amount you know you want to spend and you prefer a traditional loan structure that provides a fixed monthly payment to pay off the entire amount over a set length of time. You aren't sure how much you'll need and when, or you simply want to have a safety net for unexpected expenses. A line of credit provides that flexibility and the opportunity to make interest-only payments for the first 10 years.
Rate and monthly payment

Rate and monthly payment are fixed and do not change throughout the life of the loan.

Rates currently start as low as 5.00% APR2 for the 5-year term.

Rate may increase or decrease when the Prime Rate changes. The monthly payment will depend on your balance.

Rates currently start as low as 5.25% APR.

Maximum rate changes Rate does not change Rate may increase or decrease when the Prime Rate changes, but it will not go below 5.00% APR.             
Available loan options Amounts from $25,000 - $400,000 in three available terms:
  • 5-year
  • 10-year
  • 15-year
Amounts from $25,000 - $400,000 with a variable-rate draw period of 10 years with interest-only payments, followed by a fixed-rate repayment term of 15 years for any remaining balance.
Appraisal and closing costs An appraisal fee will apply to all loans over $250,000 and loans in first lien position. An appraisal fee will apply to all loans over $250,000 and loans in first lien position.
1. Consult your tax advisor.

2. APR = Annual Percentage Rate. Rates and terms shown are accurate as of 09/18/2019, and apply to a Home Equity Loan for the most qualified applicant at the CLTV shown. Rates vary for second or vacation homes. Home Equity Loans are only available in California on owner occupied and vacation or second homes.
APR = Annual Percentage Rate. Rates and terms shown are accurate as of 09/18/2019, and apply to a Home Equity Line for the most qualified applicant at the CLTV shown. Rates vary for second or vacation homes. Home Equity Lines of Credit are only available in California on owner occupied and vacation or second homes.

3. The minimum periodic payment for line of credit is interest-only for the first ten years ('draw period') followed by fully-amortizing payments to repay the balance over the final fifteen years. No draws will be allowed during the repayment period. Payments and rate can adjust monthly. Payments will increase if rates increase. At the end of the draw period, your required monthly payments will increase because you will be paying both principal and interest.

Line of credit rate is calculated using an index plus a margin. The index used is the Prime Rate as published in the Wall Street Journal Western Edition on the last business day of the month prior to the change. The current prime index is 5.25%. The minimum credit line amount is $25,000 and the maximum is $400,000. SMCU will pay customary closing costs on lines up to $250,000 in second lien position. Borrower is responsible for closing costs on lines in first lien position or over $250,000 and any escrow fees resulting from changes to title. Borrower is responsible for closing costs on a line of credit in first lien position and investment properties.
 
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