Home Equity Loans and Credit Lines
Home Equity Loans & Second Mortgages
The equity you've built up in your home can provide financial freedom for a variety of needs. Home equity represents a ready source of cash that can be used for more than just home improvements. Use your home equity loan or line of credit to purchase a car, finance school expenses, or pay off credit cards. Whatever your cash needs, Mid American has two exciting ways to access your home's equity - an EQUITY ACCESS VISA Gold card or a traditional second mortgage. And the interest paid on either one may be tax deductible! (We encourage you to consult your tax advisor for the specific tax benefits of an EQUITY ACCESS line of credit or a second mortgage.)
Equity Access VISA
Choose the EQUITY ACCESS VISA if your borrowing will occur over time, like paying for college expenses or do-it-yourself home improvements. This line of credit is secured by a second mortgage on your home. You can access your funds either through an EQUITY ACCESS VISA card, or through checks on your line of credit. You have the funds when you need them, where you need them.
There are two interest rate options on the EQUITY ACCESS account. If you have your paycheck deposited directly into a Mid American checking account, the rate is the Wall Street Journal Prime. That's right, the Wall Street Journal Prime plus 0%. (Minimum rate is 7%. Rate cannot increase more than 2% in any one calendar year.)
If you don't choose direct deposit, your interest rate is calculated by adding just 1% to the Wall Street Journal Prime with a minimum of 7% (it cannot increase more than 2% in any one calendar year).
Traditional Second Mortgage
Choose a traditional second mortgage if you are planning a specific, large expense, like adding a room to your home, or consolidating debt. This is a fixed-term, fixed-rate, closed-end loan, which means that you have the same payment, at the same interest rate, every month until your loan is paid in full.
Figuring Your Available Equity
Multiply the appraised value of your home by 90% then subtract the amount you owe on your mortgage. The remaining balance is your available equity.
|$80,000||– Appraised value of home|
|$72,000||– 90% of appraised value|
|-31,000||– Amount owed on mortgage|
|$41,000||– Current available equity|
We Make it Easy
Once your application has been approved, you have your funds to use for whatever you want. Interest rates on either the line of credit or traditional second mortgage are exceptionally low, making this an excellent way to pay off items financed at higher rates. And the interest paid may be tax deductible (be sure to consult your tax advisor).
A solution for meeting your financial needs may literally be at your doorstep — the equity in your home. Equity is based on the current market value of your home minus any remaining mortgage payment. Use your home’s equity to purchase a car, finance school expenses, do a home remodel or consolidate your credit card debt.Home Equity Loans & Second Mortgages
At Mid American, we offer two home equity borrowing options: a lump-sum loan or access to a line of credit whenever you need it. The interest paid on either option may be tax-deductible; consult your tax advisor for the specific tax benefits.
Equity Access VISA
Choose this product if your borrowing will occur over time, such as buying items for your DIY home improvements. You can access your line of credit through either a VISA card or checks, which means you’ll have the funds when you need them, where you need them. You’ll get a better interest rate option if your paycheck is directly deposited into a Mid American checking account.
Traditional second mortgage
For specific, large expenses — such as consolidating debt — this fixed-term, fixed-rate, closed-end loan would be your best option. You’ll get a lump-sum payment and then make the same monthly payment at the same interest rate until your loan is paid in full. If your home is already paid off, you can still qualify for this loan — it’s simply called a home equity loan in that case.
What’s my home’s equity
To figure your home’s available equity, multiply the appraised value of your home by 90% then subtract the amount you owe on your mortgage. The remaining balance is your available equity. At Mid American, we use the county’s appraised value for your home unless a member wants to pay for another appraisal.
$80,000 – Appraised value of home
$72,000 – This is 90% of your appraised value
-31,000 – Amount owed on mortgage
$41,000 – Available equity
Just click here for the secure Equity Access/Second Mortgage application, fill it out and electronically submit the form.
*APR=Annual Percentage Rate. Rate effective 4/1/11 and subject to change without notice. Gift card offer good on approved home equity loans of $10,000 or more.