What is the difference between Home Equity Loan and Home Equity Line of Credit?
A Home Equity Line of Credit works very much like a credit card. You are allowed to borrow up to a certain amount for the life of the loan in a time limit set by Freedom First. Home Equity Line of Credit rates are set based on the Prime Rate. A Home Equity Loan is lump sum loan with a fixed rate - the funds are distributed all at once and you must pay the amount back in fixed payments, kind of like a car loan.
A Home Equity Line of Credit works very much like a credit card. You are allowed to borrow up to a certain amount for the life of the loan in a time limit set by Freedom First. Home Equity Line of Credit rates are set based on the Prime Rate. A Home Equity Loan is lump sum loan with a fixed rate - the funds are distributed all at once and you must pay the amount back in fixed payments, kind of like a car loan.
Can I use Home Equity to renovate my house?
Yes, home equity can be used for home improvements.
Are there closing costs on a Home Equity Loan?
Yes, there are closing costs. Depending on the product, creditworthiness, and other factors, some closing costs may be covered by Freedom First. Explore our home equity options for more details.
Do I need to get a home appraisal?
As part of the application process, an appraisal may be required to determine the value of your home.
As part of the application process, an appraisal may be required to determine the value of your home.
How fast will I get my money?
The application process varies with many different factors. Please have all your paperwork ready when applying for a faster process.
The application process varies with many different factors. Please have all your paperwork ready when applying for a faster process.
How much can I borrow with a home equity loan?
If you want to estimate how much equity may be in your home prior to applying, use our Home Equity Line of Credit calculator. However, please note that the actual amount will depend on a number of factors and may not match what the calculator shows.
What is the difference between interest and APR?
The interest rate is the percentage charged on the money you borrow, while the APR (Annual Percentage Rate) reflects the total yearly cost of the loan, including the interest rate plus certain fees and closing costs. In simple terms, the interest rate tells you what you're paying to borrow money, while the APR gives a more complete picture of what the loan really costs.
The interest rate is the percentage charged on the money you borrow, while the APR (Annual Percentage Rate) reflects the total yearly cost of the loan, including the interest rate plus certain fees and closing costs. In simple terms, the interest rate tells you what you're paying to borrow money, while the APR gives a more complete picture of what the loan really costs.
How do I figure out how much equity I have available to me in my loan?
You can access your equity line or loan balance by going to Freedom First Online Banking or by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free).
You can access your equity line or loan balance by going to Freedom First Online Banking or by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free).
If you want to estimate how much equity may be in your home prior to applying, use our Home Equity Line of Credit calculator. However, please note that the actual amount will depend on a number of factors and may not match what the calculator shows.
What is LTV and why is it important?
LTV stands for Loan-to-Value. This ratio helps determine your eligibility for a home equity loan or line of credit, as well as the maximum amount you may be able to borrow compared to the actual value of your home.
LTV stands for Loan-to-Value. This ratio helps determine your eligibility for a home equity loan or line of credit, as well as the maximum amount you may be able to borrow compared to the actual value of your home.
What are benefits of using home equity?
You may potentially get a lower rate because the loan or line of credit is secured by your home's equity. You may also be eligible for a tax deduction; consult a tax advisor to see if you qualify.
You may potentially get a lower rate because the loan or line of credit is secured by your home's equity. You may also be eligible for a tax deduction; consult a tax advisor to see if you qualify.
How do I find out my home’s value?
An appraisal is the best option to determine your home's value.
An appraisal is the best option to determine your home's value.
Is the interest I pay tax deductible?
Interest may be tax deductible in certain situations. Please consult a tax advisor for further information regarding the deductibility of interest.
Interest may be tax deductible in certain situations. Please consult a tax advisor for further information regarding the deductibility of interest.
Do I need perfect credit for a home equity loan or line of credit?
No. We give Home Equity secured loan options to a wide variety of credit applicants.
No. We give Home Equity secured loan options to a wide variety of credit applicants.
How do you decide if I qualify for a home equity loan or line of credit?
Our underwriting professionals make the determination on many factors.
Our underwriting professionals make the determination on many factors.
What will my home equity loan or line of credit rate be?
Your rate will depend on your creditworthiness and other factors during the underwriting process.
Your rate will depend on your creditworthiness and other factors during the underwriting process.
Home Equity Line of Credit (HELOC)
How can I access my HELOC funds?
After your HELOC has been funded, you have access to use your funds at any time. Since it's an open line of credit, that means if you pay off your balance, you'll have access to those funds again - similar to a credit card.
- Transfer to a Freedom First deposit account: This method is the quickest and most convenient way to access your funds. If you have a Freedom First checking, savings, or money market account, you can instantly transfer funds from your HELOC within online banking.
- If you're not enrolled in online banking but want to use this feature, please call us at 540-389-0244 (local) / 866-389-0244 (toll-free) and say "online banking" or visit a branch.
- Transfer to an outside account with Bill Pay: If you'd like to transfer the funds to a checking, savings, or money market account NOT at Freedom First, you can use our free BillPay feature in online banking.
- Click or tap the "Pay" button in online/mobile banking.
- Click or tap the + button at the top and select "Person."
- Choose "direct deposit" to make a free account-to-account ACH transfer.
- Follow the prompts to enter the account information.
- Select a date to schedule the transfer.
- Convenience checks: If you requested checks when you opened your HELOC, you may use them to pay others directly. To request additional checks, please call our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) and say "order checks" or visit a branch.
- Visit a branch: Stop by any Freedom First branch for additional help with transfers or to request an official (cashier's) check from your HELOC.
There are several options to make payments on your Freedom First HELOC. The easiest method to make payments is from a Freedom First deposit account (checking or savings), which will also qualify you for Online Banking where you can easily see your payoff progress and payment history.
- Transfer: It's convenient and free to make your monthly payment and set up automatic payments in the Freedom First mobile app or online banking portal. Having a HELOC at Freedom First means you're a member, and each membership comes with a Primary Share savings account. You can use this account to conveniently make and schedule your payments. Plus, you have access to our competitive options for checking accounts, money markets, and certificates (CDs), too!
- Special Tip: Within online banking, you can set up an email reminder that your payment is due. You can also view your available balance and transaction history.
- Automatic Withdrawals: Freedom First offers free automatic monthly withdrawals from your primary financial institution. These automatic withdrawals can be set up at your bank or credit union, or at one of our convenient Freedom First branches.
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- To do this at another financial institution, you will need Freedom First's routing number (251483023) and your loan account number. You can find your loan account number on your loan agreement, listed in online banking, or by inquiring at a branch. For your security, loan account numbers cannot be provided over the phone. You can use this information to set up automatic or manual payments through your financial institution's bill pay service.
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- To do this at a Freedom First branch, you will need a voided check from the account to be debited. Please allow us 5-7 business days to establish the ACH transaction agreement from your financial institution to your loan at Freedom First.
- In-Person: You can make your payment at one of Freedom First's many branches in the Roanoke, New River Valley, and Lynchburg areas. Exact street addresses and hours for each branch can be found online here. Please note that our branches do NOT accept payments by card and can only accept payments by cash or check.
- Online: If you do not wish to pay from your Freedom First Primary Share savings account or another Freedom First account, you still have the option to pay online for a fee. Just hover over the "Help & Support" tab and click on "Quick Pay." This will take you to the payment portal, which will require you to input your 9-digit account number, and your 2-digit loan ID. You can find this information in your original loan agreement, in online banking, or by visiting a branch. For your security, loan account numbers cannot be provided over the phone. Please note that use of Quick Pay will incur a $12 fee per instance.
- By Phone: If you call Freedom First to make your payment, please note that you will be using our Quick Pay service for a $12 fee per instance. You will need your 9-digit account number and your 2-digit loan ID to make the payment. Simply call 540-389-0244 (local) / 866-389-0244 (toll-free) and say "loan payment" to get started.
Can I request an increase in my Home Equity Line of Credit?
In order to increase your Home Equity Line of Credit limit, you would need to apply for a new loan by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visiting a branch.
In order to increase your Home Equity Line of Credit limit, you would need to apply for a new loan by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visiting a branch.
How many months will I have access to my available credit with my Home Equity Line of Credit?
You will be able to make advances from your Home Equity Line of Credit for 120 months (10 years).
You will be able to make advances from your Home Equity Line of Credit for 120 months (10 years).
What is the Prime Rate?
The Prime Rate is based on the federal funds rate, which is set by the Federal Reserve and is among the most widely used benchmark in setting rates for home equity lines of credit.
What does end of draw mean with a Home Equity Line of Credit, and what happens?
The draw period (or advance period) for the Home Equity Line of Credit is 120 months (10 years). Once that period ends, the loan will enter repayment. In the repayment period, payments will consist of principal and interest payments amortized over the remaining 120 months (10 years).
The Prime Rate is based on the federal funds rate, which is set by the Federal Reserve and is among the most widely used benchmark in setting rates for home equity lines of credit.
What does end of draw mean with a Home Equity Line of Credit, and what happens?
The draw period (or advance period) for the Home Equity Line of Credit is 120 months (10 years). Once that period ends, the loan will enter repayment. In the repayment period, payments will consist of principal and interest payments amortized over the remaining 120 months (10 years).
How far in advance should I prepare for end of draw for my Home Equity Line of Credit?
If you are at the end of the draw period but like the convenience of having access to the Home Equity Line of Credit, you would need to apply for a new loan by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visiting a branch.
If you are at the end of the draw period but like the convenience of having access to the Home Equity Line of Credit, you would need to apply for a new loan by calling our Contact Center at 540-389-0244 (local) / 866-389-0244 (toll-free) or visiting a branch.
Is a Home Equity Line of Credit (HELOC) better than a personal loan?
This depends on your individual needs. Contact us so we can help you make the best financial decision for your situation.
Can I use Home Equity Line of Credit (HELOC) for debt consolidation?
Yes, a HELOC can be used for debt consolidation.