Loans — Home Equity LoansApply NowMake the most of your home equity From making home improvements, paying for your education or paying off debts to jet-setting on your dream vacation, or investing in a small business, you can use your home equity to your advantage. Our team at Gesa is here to help make the most of your home equity. Navigating the appraisal process Just like when you bought your home, you’ll need an appraisal to confirm the value of your property. The appraiser will inspect your home and compare it to similar, recently sold homes in your area to determine an opinion of value. Low home appraisal Decrease the amount of the refinance: In some cases, you might have to bring cash to the table to cover the difference between the loan amount and property value. Cancel the loan: A low home value might mean that refinancing isn’t right for you at this time. The best-case scenario is that your appraisal comes back higher than or on par with what you expected. If a low appraisal comes backs, you do have the option of cancelling the loan, but you may still be required to pay appraisal fees and lender fees. That’s why doing research to estimate your home value is very important. Once the underwriter approves all the required paperwork, your loan is nearly complete. Your lender will be in touch with you to schedule your closing and review your final loan numbers. The underwriting process After all your documents are submitted, Gesa will work on underwriting your loan. This is where the underwriter checks all the details on your mortgage application and supporting documentation to make sure everything’s accurate and fulfills the necessary guidelines. Your debt-to-income (DTI) ratio Another factor to take into consideration is your DTI. DTI is all your monthly debt payments divided by your gross monthly income. DTI is one way lenders measure your ability to repay the money you’re borrowing. Most lenders require a DTI of 45% or lower, and the maximum DTI varies by the type of loan you receive A high DTI can impact your ability to refinance or limit your refinance options. Remember that utilities, phones, etc. do not count toward your DTI. Contact a Gesa loan officer if you have any questions. Notes and Fees - Fixed Home Equity Gesa Credit Union will finance a fixed-rate, one-time loan advance using the equity in a member’s primary residence as collateral for the loan. The property must be located in Washington, Oregon or the following counties in Idaho: Benewah, Bonner, Boundary, Clearwater, Kootenai, Latah, Lewis, Nez Perce or Shoshone. Borrowers may be required to pay third party fees at closing such as, appraisal fees, a quit claim deed fee, excise tax and other applicable fees. Loan value restrictions apply. Minimum loan amount is $20,000. All rates and terms offered are dependent on credit qualification, are subject to loan to value guidelines, and are subject to change. Contact Gesa Credit Union for full program details. Payment Example – Fixed Home Equity Loan: fixed rate; terms to 60 months. Payment of $361.60 a month based on a 5 year, $20,000 loan at 3.250% APR. Notes and Fees - Home Equity Line of Credit APR is stated as annual percentage rate. Gesa will finance a line of credit using the equity in a member’s primary residence as collateral for the loan. The property must be located in Washington, Idaho Counties: Benewah, Bonner, Boundary, Clearwater, Idaho, Kootenai, Latah, Lewis, Nez Perce and Shoshone or Oregon Counties: Clackamas, Clatsop, Columbia, Gilliam, Hood River, Morrow, Multnomah, Sherman, Umatilla, Union, Wasco and Washington. The APR is based on Prime rate as published in the Wall Street Journal plus a margin of 0.00% to 2.75%. APR can be adjusted quarterly with a floor of 3.95% and a maximum of 18%. Minimum loan amount is $10,000. Maximum loan amount is $250,000. Gesa will lend up to 90% of the value on a member’s primary residence (75% on Jumbo products or manufactured homes), minus any existing mortgages or liens. The loan has a 10 year draw period and a 15 year repayment period. The variable monthly payment during the draw period will be a minimum of $75.00 or an interest only payment (whichever is greater) based on the balance of the loan when the cycles ends each month. During the 15 year repayment period, the payment will be a variable payment of principal and interest to pay the balance owing at the end of the draw period in full on an amortized 15 year term. The Credit Union will pay all the closing costs unless a full appraisal is required. Typical appraisal costs range from $800- $1,200. All rates and terms offered are dependent on credit qualifications, subject to loan to value, debt to income guidelines, and are subject to change without notice. Property insurance is required. Please contact Gesa for full program details.