There’s no place like where your heart is.
Owning a home is something many people aspire to achieve. Whether you’re buying a new home and need a Mortgage or you already have a home that you want to upgrade with a Home Equity Loan or Home Equity Line of Credit, we’re here to support your efforts.
Mortgages made simple.
If you are looking to purchase your first home or have not owned a home in three years, the First-Time Home-Buyer Savings Account allows you to save money for a down payment and closing costs while providing Oregon state-tax savings.
Looking to refinance your current mortgage? The first step is to determine what you want to achieve with this refi. Is it paying off your mortgage years earlier to save thousands on interest or to take advantage of attractive rates? We can help you explore term and rate options that will best suit your objectives.
Give us a call and we’ll provide a one-on-one, no-obligation loan consultation with you. Then, when you’re ready to start the loan process, you can apply online or we can walk you through the process step by step.
Home equity can help build your future.
If you’ve been making regular mortgage payments, there’s a good chance you’ve got some equity built up that can be used as loan collateral for home improvements, college tuition or debt consolidation. A Home Equity Loan is a loan with a fixed interest rate over a fixed term on the amount borrowed.
For example, if your home’s appraised value is $300,000, and you owe $240,000 on the mortgage, this means you have $60,000 of equity in your home. With Heritage Grove, you can borrow up to 90% of this equity to a maximum of $250,000. In this example, that’s up to $54,000.
Heritage Grove will help you decide which home equity product is best for your situation.
Harness the power of your home.
With a Home Equity Line of Credit (HELOC) you pay a variable interest rate only on the amount you actually use from the line of credit.
A HELOC is a flexible option if you are planning multiple home improvement projects and do not know how long it will take or exactly how much money you’ll need. Since you only pay on the money you use, you avoid paying higher monthly loan payments on money you haven’t used yet.
In addition to our variable-rate HELOC, we also offer a Home Equity Line of Credit we call Multi-Lock. This allows you to lock in a portion of the HELOC at a fixed rate. This is especially beneficial when interest rates start increasing, as it allows you to secure a specific amount of money you’ve borrowed at a lower interest rate.
Help make your home buying a bit easier
Buying a home or considering home equity options can be a stressful experience, but Heritage Grove is here to help you every step of the way—from figuring out monthly payment options using our mortgage calculators to securing your investment with homeowner’s insurance.
Buying a home is one of the most complicated — and costly — purchases you will ever make. Knowing these terms will ensure you are ready to make smart decisions with your money.
Adjustable rate mortgage (ARM): A mortgage with an interest rate that can change over time. It typically has a low, fixed initial interest rate and then may adjust regularly either up or down depending on market conditions. It can’t exceed a set rate cap.
Closing costs: Fees from buying a house from both the lender and third parties like inspectors, attorneys, surveyors and title insurance companies. These typically add up to 3%-6% of the total home price, though some of these charges are negotiable.
Down payment: When you’re buying a home and financing it with a mortgage, most lenders require you to put down a certain amount of cash up front, usually 5% to 20% of the total price. Your mortgage covers the amount remaining after the down payment.
Escrow: A neutral, third party account that protects the money of both buyers and sellers until real estate transactions are finalized. For example, if you choose to make a deposit with an offer on a home, it would go into an escrow account first rather than directly to the seller. Once you’ve bought a home, escrow accounts are also typically used to hold money for homeowners insurance and property taxes until payment is due.
FHA loan: A mortgage offered through the Federal Housing Administration that has less strict credit and down payment requirements compared with conventional loans. It’s ideal for people with less than stellar credit who aren’t able to qualify for conventional financing. The tradeoff: Along with paying monthly mortgage insurance fees, you’ll also pay a hefty upfront premium.
Fixed rate loan: A mortgage with an interest rate that won’t change over the course of the loan. The rate may be higher than an ARM, but you’ll never have to worry about it increasing.
Interest: Money your lender charges you for cash you borrow, indicated by an annual percentage rate, or APR (for example, 4%). Your interest rate will depend on your credit history and how much you can afford for a down payment.
Principal: The amount of money you borrow. Note that you end up paying significantly more than this amount because of interest.
Private mortgage insurance (PMI): If you don’t put 20% of the home’s price in a down payment, some lenders require this insurance to lessen their risk. It’s typically paid with a monthly fee added to mortgage payments. You can often cancel it once you have a certain amount of equity in the home.
VA loan: Mortgages for qualified current or former members of the U.S. military. These typically offer more favorable interest rates and require low to no down payment. They’re offered by financial institutions but backed by the Department of Veterans Affairs.
Home Equity FAQ
1. What is a home equity loan?
A home equity loan is a fixed loan with fixed monthly payments that uses your home as collateral based on the equity that you own. You could borrow up to 90% of your home’s value, with a maximum loan amount of $250,000. To calculate your home equity amount, take the current value of your home, times 90%, take that number and subtract your mortgage. This gives you the amount of equity that you may borrow. Example:
|Your home's current value||$200,000|
|Allowable equity (of 90%)||$180,000|
Home equity loan terms are for 5, 7, 10, 15 or 20 years. The home equity loan can be secured by your primary residence, rental and investment properties, or undeveloped land. The property must be located within the State of Oregon.
2. What is a home equity line of credit?
A home equity line of credit works like other lines of credit. You are approved for an amount of money you can borrow and you draw money from the account as you need it.
Example You receive a $20,000 home equity line of credit. You borrow $10,000 and are charged a 6.24% interest rate. If you pay back $5,000, you still have $15,000 on your home equity line of credit available to borrow against when you need it. At the end of the fifteen year draw period, you stop drawing against the line of credit and start repaying the balance.
The interest rate for the home equity line of credit varies based on the Wall Street Journal prime rate. On a home equity line of credit, you can borrow up to $250,000. The home equity line of credit must be secured by your primary residence. The property must be located within the State of Oregon.
3. Why would I take out a home equity loan or line of credit?
You choose to take out a home equity loan for many reasons, including home improvements, large purchases, college tuition, or debt consolidation.
Because home equity interest rates are typically lower than credit card rates, it may be cost effective to pay off your high-interest debt with a home equity loan or line of credit.
4. Are there any application or approval fees?
No, Heritage Grove does not charge an application fee.
You are responsible for any third-party closing costs. These costs vary by the loan amount and lien position and generally include flood certification, appraisal, recording, title search and title insurance.
5. Do I need an appraisal to get a home equity loan or line of credit?
Under some circumstances, Heritage Grove may require an appraisal.
6. How long does it take to get the money?
You can apply online or over the phone and we’ll start the loan process right away. Then we need a few days to verify documents and obtain information from third parties such as title and flood information, appraisals, etc. In most cases, we can close your loan in as little as three weeks.
Once the loan is finalized, we can overnight your check or wire the funds to a specified bank account. Once the credit line is set up, you can start drawing funds immediately.
7. Is there a penalty for paying off my home equity loan early?
No, there are no pre-payment penalties on our home equity products.