Equity lines are great for recurring expenses, such as college tuition or home improvements and repairs. This is a closed-end loan with a fixed rate. You borrow a set amount for a term you choose, from one to 15 years. Second mortgages are great for large, one-time expenses such as adding a room or consolidating bills. Benefits of Both Services No closing costs Virginia Credit Union pays the closing costs associated with making the loan.
Property insurance is required.
If you pay off or close your loan within 24 months of closing, you may be required to reimburse the credit union for closing costs. Equity is defined as the difference between the appraised value of your home and the amount that you actually owe. The interest rate on an equity line is variable and may be adjusted monthly based on the prime rate as published in The Wall Street Journal . Click here for current rates . The maximum term for an equity line is 12 years.