2nd Mortgages
A second mortgage allows you to borrow against equity in your home that is gained from paying down an initial mortgage, and/or as the market increases the home’s value. Second mortgages can be structured as fixed rate loans or variable rate loans.
Fixed 2nd Mortgage
If you need to access your equity in one lump sum for immediate use, a fixed second might be the right option for you. Examples of this might be: to pay a contractor for an addition or major improvement to your home, to purchase a vehicle, or to purchase a recreation property. Features of a fixed second mortgage are:
- Access to a set amount of money right away.
- Loan pay-off begins immediately.
- Payments remain the same throughout the life of the loan.
- Can be structured as a balloon loan.
Home Equity Line of Credit
Home Equity Line of Credit (HELOC) offers members convenient access to the equity in their home by allowing members to receive proceeds of their equity through a lump sum or series of draws. There are two home equity line of credit plans available from Highmark Federal Credit Union: Plan A - VISA® Access, or Plan B – Standard Advance.
Plan A – VISA® Access
This plan offers you access to your line of credit with convenience and flexibility through a special VISA® Home Equity credit card. Available lines of credit up to $100,000, based on the equity of your home. This loan has a variable interest rate feature.
Features of this plan include:
- Convenient card access that can be used anywhere that accepts Visa®
- Check balances and transfer funds 24/7 through our ItsMe247 online banking service.
- Receive same great VISA® protections against fraud as with the Highmark Gold and Platinum credit cards.
- Earn Scorecard Rewards points with every purchase made on this special VISA® Home Equity Card.
- Low Annual Fee
Plan B – Standard Equity Advance
This plan offers you convenient access to your home equity by taking advances through our online banking service, ItsMe247, by a simple phone call to our office requesting funds, or at the teller line – up to the established limit based on the equity of your property. This loan has a variable interest rate feature.
Features of this plan include:
- Check balances and transfer funds 24/7 through our ItsMe247 online banking service.
- No Annual Fee
No matter where you bank, there are lots of reasons to choose Highmark for your Home Loan.
Current Home Equity / 2nd Mortgage Rates
These rates are effective as of April 15, 2013.
| Type of Loan | Terms | A Rate APR | B Rate APR | C Rate APR | D Rate APR | E Rate APR |
|---|---|---|---|---|---|---|
| 730+ | 680-729 | 640-679 | 600-639 | 599-Below | ||
| APR | APR | APR | APR | APR | ||
| Variable/Line of Credit* | Rates May Change Quarterly | Wall Street Prime plus 0.0% | Wall Street Prime plus 0.5% | Wall Street Prime plus 1.5% | Wall Street Prime plus 3.5% | Wall Street Prime plus 6% |
| Fixed* | 1 - 5 years | 4.45% | 4.95% | 5.95% | 7.95% | 10.45% |
| 6 - 10 years | 5.45% | 5.95% | 6.95% | 8.95% | 11.45% | |
| 11 - 15 years | 5.95% | 6.45% | 7.45% | 9.45% | 11.95% | |
| Balloon* | ||||||
| Up to 15 yr amortization | 5 years | 4.99% | 5.49% | 6.49% | 8.49% | 10.99% |
| Up to 20 yr amortization | 5 years | 4.99% | 5.49% | 6.49% | 8.49% | 10.99% |
| Up to 30 yr amortization | 5 years | 6.000% | 6.5% | 7.5% | 9.5% | 12% |
| *Interest rates increase 1% if LTV is greater than 90% based on the appraisal of the property. | ||||||
