Home Equity FAQs

Q:  What is equity?
A:  Equity is the difference between how much your home is worth and how much you owe on the mortgage.

Q:  What is collateral?
A:  Collateral is the property you pledge as a guarantee that you'll repay a debt. If you don't repay the debt, the lender can take your collateral and sell it to get its money back. With a home equity loan or line-of-credit, you pledge your home as collateral.

Home Equity Line-of-Credit

Q:  What is a home equity line-of-credit?
A:  A home equity line-of-credit is a revolving credit line that can be used for multiple purchases. Your credit line is determined by how much equity you’ve established in your home. When you apply for a home equity line-of-credit, you're using the equity you’ve established in your home as collateral to borrow the money you want.

Q:  What do I need to do to apply for a home equity line-of-credit?
A:  Before you apply for a home equity line-of-credit, you should have the following items:

• Vantage Home Equity Line-of-Credit Application
• Copy of your First Deed of Trust
  
• Verification of your first mortgage balance (recent statement)
  
• Copy of your title insurance
  
• Copy of your current homeowners insurance policy (including mandatory flood coverage, if necessary)
  
• Copy of your current property tax assessment
  
• Your most recent paycheck stub if not on Direct Deposit with Vantage Credit Union
  
• Copy of a certified Vantage-approved home appraisal (must be 12 months old or newer). List of approved appraisers available at your Vantage branch.
  

Q:  What types of home equity lines-of-credit does Vantage Credit Union offer?
A:  With our Home Equity Line-of-Credit, you can borrow up to 90% of your home’s value (minus your first mortgage balance). There are no closing costs (except Vantage-approved home appraisals, when required), which provides substantial up-front savings. View our current rates.


Closed-End Second Mortgage

Q: What is a closed-end second mortgage?
A: A closed-end second mortgage is a home equity loan. This type of loan allows homeowners with established home equity to borrow money against their established equity. The loan is for a specific purpose and for a fixed term. A closed-end second mortgage is different than a home equity line-of-credit because a home equity line-of-credit is a revolving credit line that can be used periodically for multiple purchases, over a longer term.

Q:  What do I need to do to apply for a closed-end second mortgage?
A:  You need the same documents as you would to apply for a home equity line-of-credit. See list above.

Q:  What type of closed-end second mortgage loans does Vantage Credit Union offer?
A:  We offer a 10-year, 90% loan-to-value loan. View our current rates.