Understanding Home Equity Loans

Your available home equity is the difference between the value of your home and the balance of any existing mortgage, minus the allowance loan-to-value (LTV) percentage (up to 80% or 70% depending on the product).

Example Calculation:

Home Value: $300,000

Mortgage Balance: $200,000

Loan-to-Value Limit: 80%

Available Equity for Loan:

(Home Value x 80%) - Mortgage Balance

= ($300,000 x 0.80) - $200,000

= $40,000 Available

Fixed-Rate 2nd Mortgage vs. Variable-Rate HELOC: Which Should You Choose?

Use a Fixed-Rate 2nd Mortgage when:

  • You need a large, upfront lump sum.

  • You want predictable, consistent monthly payments.

  • You’re financing big projects like major renovations.

 

Use a HELOC when:

  • You prefer flexibility and want to borrow as needed.

  • You fund ongoing or unpredictable expenses (e.g., tuition, medical costs).

  • You expect to repay quickly and want to take advantage of low introductory rates.

Before applying for a loan with Members Credit Union, please ensure you meet the following requirements:

  • You must qualify for membership with Members CU

If you live, work, worship, or study in any city/town within Fairfield County, Connecticut, you may be eligible. Check if your city/town is on the list here:

List of Cities/Towns in Fairfield County, CT

  • Only for properties located in Connecticut

  • Your property must be either your primary residence or an investment property, depending on the loan product.

Accepted Property Types:

  • Single-Family Homes

  • Condominiums

  • Apartments

  • Duplexes

  • Townhouses

  • Co-ops and commercial properties not accepted.

All individuals listed on the property title must sign at closing, even if they are not included in the loan agreement, all titleholders must sign as part of financial responsibility.

How to Start the Loan Process

To begin, you must complete and submit the following documents:

Home Equity Loan Application

  • Proof of Income (e.g., pay stubs, tax returns, employment verification letter, bank statements).

  • Latest mortgage statement (If you have an existing mortgage)

Proof of Home Insurance

  • Request your Home Equity Loan Package:

  • By email: dreamsprosper@memberscu.coop

  • Text us at: (203) 622-6050

  • Visit our office for in-person assistance.

We are here to help you achieve your financial goals with the best loan options at Members CU!