Built for your big plans

The amount you can borrow with a home equity loan depends on several factors, from your home’s value and your current mortgage balance to the results of your application review.

In general, the more equity you have available in your home, the more you’ll be able to borrow. If you want a quick estimate before you apply, you can use our calculator to estimate your borrowing potential.

We assess qualification on a case-by-case basis, as we’ll assess your available home equity, home value, current mortgage balance, credit history, income, and ability to repay.

Typically, though, you’ll need a minimum credit score of 620, and your combined loan-to-home-value ratio must be under 80%.

Most primary or secondary homes located in Michigan or Florida are eligible, but our home equity specialists will review both your application and property details to confirm eligibility.

A fixed-rate home equity loan is likely a better choice if you:

• Know exactly how much funding you need
• Want to lock in a certain rate that won’t change 
• Want predictable monthly payments
• Want to consolidate debt with a structured plan

A HELOC could be better if you need funds for:

• An ongoing renovation  
• A project that may have unexpected costs
• A project whose budget and scope can’t be accurately estimated

When comparing a fixed-rate home equity loan vs a HELOC, the better option ultimately depends on your goals, timeline, and comfort with fixed rates vs changing payments.

Your monthly home equity loan payment is based on the amount you borrow, your interest rate, and your repayment term.

With a fixed-rate home equity loan, your principal and interest payment stays the same over the life of the loan, which can make budgeting easier.

As part of the application process, our Home Equity team may request documents like the following to help verify your information:

• A valid ID or driver's license
• Your homeowner's insurance information or declarations page
• A recent mortgage statement
• A property tax bill
• Recent pay stubs
• W-2s or tax returns

A property valuation may be needed as part of the review process, and in some cases, an appraisal may also be required.

This is determined on a case-by-case basis and can depend on factors like your property, loan amount, and the overall results of your application review. If a valuation is needed, related costs may be factored into your closing costs.

Your loan turnaround timeline can vary based on factors like how quickly you submit the required documentation, how complex the review is, and whether additional steps like title work or a property valuation are deemed necessary.

The best way to keep the process moving quickly is to complete your application fully and provide all requested documents as soon as possible.

If you have a lot of high-interest credit card, loan, or other debts, and current home equity rates are lower, it could make sense to use a home equity loan to pay off those higher-interest debts, so you can simplify your monthly payments and save money on interest in the long run by only needing to pay off your home equity loan.

LMCU Home Equity Loans have no application fee and no annual fee. Some third-party costs may still apply, depending on your application and property details. These could include things like appraisal, title, recording, credit report, flood determination, or government charges. 

Our home equity team will walk you through any costs that may apply before you move forward, so you know what to expect.