University of Michigan Credit Union

Home Equity Loans

For a limited time, UMCU is offering a special on our closed-end home equity loans. Click here to learn more.

Use the equity in your home to apply for a closed-end home equity loan, home equity line of credit, or Visa Gold Home Equity Line of Credit. Credit limits are available up to 95% of the appraised value of your home (less mortgage and liens), with a minimum of $15,000 for the closed-end loan, $10,000 for the lines of credit, and a maximum of $250,000 for the closed-end and line of credit and $75,000 for the Visa Gold. The home or property must be located in Michigan.

Obtain substantial amounts of cash for home improvements, for college tuition, to buy another home, or for any reason.

Save an extra .25% on your interest rate when you authorize automatic deduction of your payments. .

To submit your application, schedule an appointment with a home equity officer To inquire, call 734-662-8200 or 800-968-8628 and ask for one of our home equity loan experts.

Once your home equity loan is approved, you can also make transactions online through our free MemberNet online banking service:

Home Equity Line of Credit - make advances and payment transfers.
Closed End Home Equity - make payment transfers.
Visa Gold Home Equity Line of Credit - make payment transfers.

Click here to apply for MemberNet.

Home Equity Products - Comparison Sheet

	Closed-End Home Equity Loan	Home Equity Line of Credit	Visa Gold Home Equity Line of Credit
Property Types	An owner-occupied home or condominium or non-owner occupied (vacation, rental, or investment) property in Michigan only.	Same	Same
Percentage of property value allowed	Up to 95% of the value if the property is owner-occupied and up to 70% if it is non-owner occupied.	Same	Same
Interest rate	Fixed rate. See current rate sheet.	Adjustable rate. Changes quarterly. See current rate sheet.	Adjustable rate. Changes quarterly. See current rate sheet.
Determination of Annual Percentage Rate		The adjustable annual percentage rate is equal to the average of the 13-week U.S. Treasury Bill rates for the last four weekly auctions of each calendar year quarter rounded to the nearest .25%, plus a margin. The annual percentage rate will never increase or decrease more than 3.0% during any calendar year starting from the date the loan is opened. The APR will never be less than 4.0% nor more than 18.0% per annum.	The adjustable annual percentage rate is equal to the Wall Street Journal Published Prime plus 50 basis points in effect on the last business day prior to the beginning of each calendar quarter ("index") rounded to the nearest .1250%. Changes in the index will cause changes in the APR as of the first day of each calendar quarter following an index change. The APR will never be less than 4.00% per annum nor more than 18.00% per annum.
Interest rate discount	.25% if borrower uses the automatic payment deduction program.	Same	Same
Interest is tax deductible	Usually*	Usually*	Usually*
Terms	5, 10, 15, 20 years	15 years with advances allowed the first 7 years Repayment due monthly, based on outstanding balance.	10 years (balloon or refinance). Repayment due monthly, based on outstanding balance.
Minimum - maximum loan amount allowed	$15,000 - $250,000	$10,000 - $250,000	$10,000 - $75,000
Payment plan	Installment. Payments of interest and principal over the term of the loan satisfy the loan in full by the maturity date.	Revolving line of credit. Minimum monthly payment is the greater of $85 or $17 per thousand dollars of the outstanding balance. A single lump sum payment may be required to pay off the balance on the 15th anniversary of the opening of the loan.	Visa line of credit. Minimum payment is equal to .75% of total new balance, interest owed or $50, whichever is greater, unless your unpaid balance is less than the latter amount, in which case your minimum monthly payment will be the entire new balance.
Funds disbursement	Full amount disbursed on the fourth business day after closing.	Initial draw must be $5,000 and is disbursed on the fourth business day after closing. Subsequent advances of $100 or more may be done by writing an equity check or online through MemberNet.	Borrower may access funds on the fourth business day after closing their line of credit. A loan advance may then be completed by using the Visa card or by visiting any of our office locations.
Pre-payment penalty	None	None	None
Closing costs and fees	None	None	None
Late Charge	If more than 30 days late making any monthly payment, in addition to the payment, a late charge of 20% of the interest due will be assessed (not less than $.25 nor more than $25).	If more than 30 days late making any monthly payment, in addition to the payment, a late charge of 20% of the interest due will be assessed (not less than $.25 nor more than $25).	If the minimum payment is not made by the 10th of the month following the payment due date, a late charge of $24.00 will be accessed.
When finance charges begin to accrue	When the full amount is disbursed on the fourth business day after closing	Finance charges begin whenever an advance is posted, regardless of when and how much is paid.	If the entire statement balance is not paid within 25 days of the statement date, then finance charges will accrue on each purchase separately from the date it is posted to the account. Cash advances are always subject to Finance Charges from the date they are posted to the account.
Balance on which finance charge may be imposed	Finance charge will be assessed on the daily unpaid loan balance.	Finance charge will be assessed on the daily unpaid loan balance for every day the balance is outstanding during the statement cycle.	Finance charge will be assessed on the average daily unpaid loan balance for every day the balance is outstanding during the billing cycle.
Method of determining the finance charge	Interest will be charged on unpaid principal until the full amount of principal has been paid.	Finance charge is determined by multiplying the applicable daily rate by the daily unpaid loan balance for every day of the statement cycle after adding new advances and subtracting any applied payments to credits, unpaid late charges (if any) and unpaid finance charges. The statement cycle is the period of time that expires between account statements.	Finance charges will not accrue on your account purchase balance if you pay the balance in full every month within 25 days of your statement closing date. Otherwise, finance charge is determined by multiplying the applicable monthly periodic rate by the average balance (your daily balance divided by the number of days in the billing cycle) of your account. The statement cycle is the period of time that expires between account statements.

* We suggest members consult their tax advisors for all tax advantages.

Home Loans

Home Equity Loans