Owasso homeowners have a powerful financial tool at their fingertips– home equity loans and lines of credit. By using the equity you’ve built in your home, you can fund major expenses that might occur, like home improvements, medical bills, education costs, or debt consolidation.
At Oklahoma Central Credit Union’s Owasso branch, we help members understand how to qualify for a home equity loan and make the process smooth from start to finish with competitive rates and flexible terms.
Qualifying usually depends on three factors: the amount of equity in your home, your credit score, and your ability to repay the loan. In most cases, lenders require you to have at least 15-20% equity in your property, a solid score, and stable income.
Are There Closing Costs Associated with a Home Equity Line of Credit?
Yes, home equity loans and home equity lines of credit (HELOCs) usually come with closing costs, much like a traditional home mortgage loan. These can include fees for appraisal, title work, and documentation.
What’s Included in Closing Costs?
Closing costs often cover:
- Appraisal fees
- Title search and insurance
- Credit report fees
- Document preparation fees
- Recording fees
It’s essential to speak to a qualified rep who can thoroughly explain all of the fees associated with home equity loans. Swing by our Owasso branch today to sit down with one of our friendly team members!
Why Closing Costs Matter
While costs usually range between 2% and 5% of the loan amount, they are typically one-time charges. Even with these fees, HELOCs often deliver lower interest rates compared to credit cards, making them a cost-effective borrowing option for many homeowners.
Can I Pay Ahead on My Home Equity Line of Credit?
The short answer? Absolutely! Oklahoma Central Credit Union offers flexible repayment options for all of our qualifying customers. A HELOC functions much like a consumer credit card– you borrow what you need, repay, and then borrow again during the authorized draw period.
Benefits of Paying Ahead
There are several benefits to paying back your loan ahead of schedule:
- Save money on interest over the life of the loan
- Free up available credit for future use
- Pay off your balance faster without penalties
At Oklahoma Central Credit Union, members are encouraged to pay ahead whenever possible. It’s one of the simplest ways to maximize the benefits of a HELOC.
Can I Roll My Closing Cost Fees into My Loan?
Many homeowners prefer rolling closing costs into their loan balance instead of paying them up front. This option helps preserve cash flow, especially when the funds are already earmarked for projects like renovations or debt payoff. Spreading out the added costs of fees into your HELOC may allow you more financial flexibility at a time when other expenses are starting to pile up.
What to Consider
It’s important to weigh your options before immediately deciding to roll your closing cost fees into your principal home equity loan balance:
- Pros: No need to pay large sums at closing, easier budgeting.
- Cons: Higher principal balance and slightly more interest paid over time.
The best option for your financial situation may not be ideal for someone else. Our Owasso branch team will walk you through both options so you can make a fully informed decision based on your circumstances and preferences.
Do I Need to Provide You With Proof of My Homeowner’s Insurance?
Yes, proof of homeowner’s insurance is standard for home equity loans and HELOCs. This protects both your investment and the credit union’s security interest in your property.
What You’ll Need
Here are the things you’ll need to bring to the meeting with your Oklahoma Central Credit Union loan rep:
- A copy of your current insurance policy
- Coverage details (amounts and expiration date)
- Updates after renewal if the policy is set to expire soon
Our team will let you know exactly which documents to provide to avoid any delays in your application. Call us today to find out more!
Contact the Team at the Oklahoma Central Credit Union Owasso Branch Today!
Qualifying for a home equity loan doesn’t have to be confusing. At Oklahoma Central Credit Union, we review your equity, credit profile, income, and documentation to give you a clear picture of where you stand.
If you’re looking for transparent guidance on fees and requirements, local service from a trusted Owasso branch, and flexible repayment options based on your needs, then stop by for a consultation today!
Do you qualify? Now is the perfect time to find out. Visit our Owasso branch, call us, or reach out online to schedule an appointment. We’ll help you unlock your home’s potential and put your equity to work for you.
Call Oklahoma Central Credit Union’s Owasso branch today!
