Home Equity Loans and Credit Lines

Home Equity Loans & Second Mortgages

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.

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.

For example:

$80,000 – Appraised value of home
x 90%
$72,000 – This is 90% of your appraised value
-31,000 – Amount owed on mortgage
$41,000 – Available equity

Apply now

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.