HOME EQUITY POLICY

ARLINGTON MUNICIPAL FEDERAL 

CREDIT UNION

THE CREDIT UNION OFFERS HOME EQUITY LINES-OF-CREDIT IN THE AMOUNTS OF BETWEEN $25,000.00 AND $200,000.00 AT $5,000.00 INCREMENTS. THE FOLLOWING DETAILS APPLY.

  1. WE OFFER TWO TYPES OF HOME EQUITY LOANS:

       FIXED RATE FOR THE LIFE OF THE LOAN IS 4.50% OR A VARIABLE  RATE OF PRIME, ADJUSTED

      QUARTERLY, AS PUBLISHED IN THE WALL STREET JOURNAL ON THE FIRST BUSINESS

      DAY OF THE PREVIOUS MONTH.

     THE MIMIMUM RATE WILL BE 3.50%. CALL US FOR THE CURRENT RATE. 

2. THE PROPERTY MUST BE LOCATED IN MASSACHUSETTS.

3. THE PROPERTY MUST BE OWNER OCCUPIED. IF THE PROPERTY IS A SECOND/VACATION HOME,

    BOARD OF DIRECTORS APPROVAL IS REQUIRED.

4. THE CREDIT UNION MUST BE LISTED AS 2ND MORTGAGEE.

5. LOAN-TO-VALUE RATIO MAY NOT EXCEED 80%. PROPERTY VALUE WILL BE DETERMINED BY A

    FIELD ASSET VALUATION (FAV) PERFORMED BY A QUALIFIED AGENT CHOSEN BY THE CREDIT   

    UNION.

6. DRAW PERIOD SHALL BE 10 YEARS WITH AN ADDTIONAL 5 YEAR PAY-OFF PERIOD.

    MINIMUM DRAW SHALL BE $1,000.00

7. LOAN PAYMENTS ARE CALCULATED AT A 10 YEAR AMORTIZATION.

APPLICATION PROCESS: 

1. RETURN COMPLETED APPLICATION, ALONG WITH A COPY OF DEED TO THE PROPERTY.

2. COPY OF YOUR MOST RECENT MORTGAGE STATEMENT SHOWING CURRENT BALANCE

3. A COPY OF YOUR TAX BILL STAMPED PAID FROM YOUR CITY/TOWN HALL

4. TWO MOST RECENT PAYSTUBS OR TAX RETURNS

5. AN INSURANCE BINDER FOR AN AMOUNT EQUAL TO OR EXCEEDING THE BALANCE OF YOUR 1ST & 

    2ND MORTGAGEE AND LISTING AMFCU AS SECOND MORTGAGEE.

FLOOD INSURANCE COVERAGE IS REQUIRED IN FLOOD HAZARD AREAS.

** FIXED RATE HOME EQUITY LOANS ARE AVAILABLE AT THE CURRENT RATE OF 4.50% WITH A

    TERM OF 10 YEARS (120 MONTHS)