This page specifically discusses Navy Federal Credit Union equity loans to help you understand the benefits of entering into a such an arrangement with a “non-bank”.
Finding an equity loan is something that will require some research in order to figure out which one is the best fit for you. There are literally hundreds of equity loans packages available to you, so how do you decide which is the right one? Also, do you take a loan from a bank or some other financial organization? How about the Navy Federal Credit Union and the equity loans they offer?
Principal Benefits of Navy Federal Equity Loans
As it is a credit union, Navy Federal’s equity loans tend to offer very favorable interest rates for its members. There are no hidden fees, and credit limits for Navy Federal members can be 90% of the value of their property. When you close on the equity loan, you will receive the entire loan amount you apply for.
N.B. Some restrictions may apply to NFCU members in Texas.
Navy Federal Fixed Rate Equity Loans
If you are considering a loan with Navy Federal one of your options will be a fixed equity loan. Navy Federal equity loans offer a fixed rate for the entire lifetime of the loan, so the payment amounts never change. A fixed rate equity loan gives you a 0.25% rate discount, as long as you make automatic payments. Also, you will be able to get a repayment term which lasts up to 20 years, which will make your monthly repayments more affordable. You can borrow up to 90% of the actual property value, and there are often limited time offers granted to entice member applicants, such as no lender closing costs on equity loan that you get.
NFCU Interest Only Fixed Rate Equity Loans
Navy Federal’s interest only fixed equity loans can help to lower your monthly outgoings through payments that only include interest on the loan for the first five years of the borrowing period, after which time the principal as well as interest payments are included. With this loan offer the interest and subsequently the payments are dictated at the start of the term for its duration. This may help you to plan your finances over the long term without any surprise costs or charges appearing out of the blue. Navy Federal interest only equity loans allow you to borrow up to 80% of the value of the property and a maximum 20 year payment term.
Navy Federal Home EquityLines of Credit
Navy Federal do not just offer NFCU equity loans should you be looking for credit. If you require a little more flexibility in your borrowing, you may want to consider Navy Federal equity lines of credit.
A Navy Federal equity line of credit is effectively a credit agreement that is secured against the equity you have in your property. Think of it as more of an credit facility, whereby you are not charged a cent of interest until you begin to use it. This differs from a traditional loan as you use the credit facility as and when you require it rather than receiving a bulk amount up front. The credit line can be used over a 15 year period with the total credit amount available reaching up to 80% of tyour property’s worth.
N.B. NFCU Home EquityLines of Credit are secured against your property.
NFCU Interest-Only Home EquityLines of Credit
AS NFCU’s fixed equity loan has an interest only version, so to does Navy Federal’s Home EquityLines scheme. The Interest-Only Home EquityLines offers a five year draw time on a line of credit up to 80% of the property value. You only pay accumulated interest which keeps payments low with overpayments contributing to a reduction in the overall balance of the principal.
Applying for Navy Federal Equity Loans or Home EquityLines of Credit
Making an application for NFCU loans is relatively simple, however you must meet Navy Federal Credit Union’s member criteria before being considered a potential candidate for a loan or credit line. After passing an initial NFCU application assessment you will be contacted by a loan specialist, who will assess your financial situation, give you more information about what you might need and help you complete your full Navy Federal equity loan application.