Carolina Trust Federal Credit Union

Mailing Address: PO Box 780004, Myrtle Beach, SC 29578-7804
Phone: (843) 448-2133 / Hours & Locations / Contact Us
Lost or Stolen Cards: Debit: 1-888-918-7810 and Credit: 1-800-654-7728

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How do home equity loans work and what is the difference between a loan and line of credit?

12-Year Fixed Rate Home Equity Loan
The rate is as low as the 15-Year first mortgage rate plus 1.50% Annual Percentage Rate (APR) for qualified borrowers. Borrow up to 90% of home's assessed value minus first mortgage balance.

Financing Example: A home equity loan of $50,000 at 4.00% Annual Percentage Rate (APR) for a term of 144 months would result in a monthly payment of approximately $437.00.

15-Year Home Equity Line of Credit with 8-Year Advance Period
Principal and interest payments apply over 15-year term. Borrow up to 90% of home's assessed value minus first mortgage balance. Rate will not exceed 15.50% APR.

20-Year Home Equity Line of Credit with 10-Year Interest Only Payments
Remaining balance amortized over final 10 years. Borrow up to 90% of home's assessed value minus first mortgage balance. Rate will not exceed 15.00% APR.

We'll pay closing fees up to $400 on a minimum $5,000 home equity line of credit advance**. Variable APR is as low as 0.50% below Prime Rate; lowest rate is 4.00% for qualified members*.

Loan approval and approved rate are subject to credit worthiness. Borrower is responsible for cost of appraisal and/or title insurance if required. Title Insurance is required on loan amounts of $50,000 or greater. Flood and/or hazard insurance may be required. Closing fees vary depending on loan amount. Minimum fixed rate loan amount is $10,000. Minimum Line of Credit (LOC) amount is $5,000 for first advance and $100 thereafter. Minimum required monthly payment is $100. Restrictions apply to lender credit. A home equity loan or LOC is secured by a first or second mortgage lien on your primary one-to-four family residential real estate. Certain restrictions apply. Rates and terms subject to change. See Credit Union for details.

*The highest prime rate published in the "Money Rates Table" of the Wall Street Journal on the 20th of each month. Prime Rate is variable; as it changes, APR on home equity line of credit account also changes. The rate you qualify to receive may vary depending on individual credit history and underwriting factors. Maximum rate for a home equity line of credit is 15.50% APR. The floor rate for a home equity line of credit is 4.00% APR. **If line of credit is paid off within 12 months of opening date, then a final advance of up to $400 will be charged to member's account for closing cost fees paid on his/her behalf.

Home Equity loans must be applied for over the phone or at a Carolina Trust branch. Please contact lending services at (843) 448-2133 or toll free at 888-448-2133. You are also welcome to visit any branch location to personally meet with a loan officer to discuss your specific borrowing needs.

Please note: Non-members may apply for a Carolina Trust loan. However, before the loan can be funded, borrower must join the Credit Union.

How do Home Equity Loans work and what is the difference between a loan and line of credit?
Home equity loans give homeowners the option to borrow money using your home's equity as collateral. Equity is the difference between how much the home is worth and how much you owe on the mortgage (or mortgages, if you have more than one on the property). For example, if a current appraisal on your home indicates a value of $215,000 and you owe a first mortgage balance of $110,000, then the available equity in your home could be $105,000 if Loan to Value (LTV) were 100%.

A home equity loan or line of credit is an additional mortgage allowing you to turn your home's equity into cash to spend on home improvements, debt consolidation, college tuition, and other expenses.

There are two types of home equity debt: home equity loans and home equity lines of credit, also known as HELOCs. Both are considered mortgages since they are secured by your property, similar to your original or primary mortgage. If you need a set amount of money for a specific purpose, such as an addition to your home, then you may consider a fixed rate home equity loan, which is a one-time disbursement and closed-end transaction. If the cost of your project is undetermined or you plan to use the money for multiple purposes, then you may consider a variable rate home equity line of credit. Multiple advances (or disbursements) may be taken from an open-end line of credit.

Home Mortgage Disclosure Act Notice

Equal Housing Lender Notice of Nondiscrimination Compliance

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