Products | Loans | Home Equity Loans and Lines of Credit

Put your home to work with a home equity loan.

Home improvements, bill consolidation, educational expenses... No matter what you're paying for, a home equity loan can provide the funds you need. Since your home is used as collateral, the interest rate on a home equity loan is lower than for other loans. Plus, the interest you pay may be tax deductible*, making a home equity loan an even smarter choice. Columbus Metro currently offers home equity loans to homeowners residing anywhere in the state of Ohio.

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A variety of loans to choose from

Different situations require different loans. That's why Columbus Metro offers two distinct types of home equity loans: our Redi-Line home equity line of credit and fixed-rate home equity loans.

Redi-Line Home Equity Line of Credit

A home equity line of credit, or HELOC, is a revolving line of credit for which your home serves as collateral. You'll be approved for a specific amount of credit, or credit limit, which is the maximum amount you may borrow at any one time. You access your credit line as needed using our special Redi-Line Visa or handy convenience checks. As you make payments towards the principal, those funds become available for your use once again.

HELOCs are particularly convenient if your need for funds is ongoing. For example, you may be paying for a child's four- (or more!) year college education or making a variety of home improvements. Redi-Line allows you to borrow what you need at any given time, repay it, and then borrow again as needed. With a Redi-Line home equity line of credit, you can borrow up to 90% of your home equity. What's more, there are no application fees, no closing costs and no annual fees associated with our home equity line of credit.

• Apply Online
• Current Rates
• Request an Application Packet

Fixed-Rate Home Equity Loans

A home equity loan is simply a closed-end or installment loan. In other words, you borrow a specific amount and agree to pay it back over a specified period of time. Home equity loans are usually used for a one-time purpose such as purchasing a new car or consolidating bills. Columbus Metro offers fixed-rate home equity loans with terms of 120 months, and you can borrow up to 100% of the equity in your home.

• Apply Online
• Current Rates
• Request an Application Packet

As an alternative to traditional fixed-rate home equity loans, Columbus Metro also offers an IDEAL loan. An IDEAL (Interest Deductible Equity Account Loan) loan costs less and can be more flexible than a traditional home equity loan, but still gives you the option of using your home equity to secure a tax deduction.* Here's how it works:

Joe and Carol Member own a home with a fair market value of $100,000 and a mortgage balance of $75,000. Carol decides to purchase a $25,000 new car with a vehicle loan from the credit union, and chooses the IDEAL Loan option. As collateral for the loan, the credit union will hold both the new car's title and the mortgage deed to their $100,000 home. By using the Members' home as additional collateral, the IDEAL Loan allows Carol to deduct the interest she pays on the loan from her federal income taxes.*

With an IDEAL loan:

• No application fee is required

• No appraisal is necessary

• Just $100 covers verification of property ownership, flood certification, preparation of the mortgage, and filing and release fees

• The mortgage can be released** at any time if you find it necessary. (You would, however, relinquish any tax deductibility for the rest of the loan).

If you are interested in an IDEAL loan, please contact us for more information.

* See your tax advisor for deduction eligibility. ** Pending credit union approval.

Calculating your home equity

Home equity is simply the difference between the fair market value (appraised value) of your home and your outstanding mortgage balance. For example, if your home is worth $150,000 and you still owe $65,000 on your mortgage, your home equity would be $85,000.

When you take out a fixed-rate loan, Columbus Metro allows you to borrow up to 100% of your home equity, or $85,000 in the above example. You may borrow up to 90% of your home equity with our Redi-Line home equity line of credit, or $70,000 in our example. The chart below demonstrates how we arrived at these figures:

If you have any questions or would like more information about Columbus Metro's home equity loans or lines of credit, please stop in any of our offices, call us at (614) 239-0210 or (800) 986-3876, or email us today.

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