No Closing Costs.** Unlock Your Home’s Value!
Did you know your NEPA home could help you pay for your next big goal? The equity you’ve built is one of the most useful financial tools you have. Your home equity represents the difference between what your property is worth and what you still owe on your mortgage. Tapping into that equity through a home equity loan can be a smart financial move, whether you’re looking to renovate your kitchen, pay for education, consolidate debt, or handle a major life expense. At Choice One Community Credit Union, we’ve been serving the NEPA community for decades, and we understand what matters to our neighbors. That’s why we offer home equity loans with no closing costs,** competitive fixed rates, and the kind of straightforward service you won’t find at big banks.
What Is a Home Equity Loan?
A home equity loan is a lump-sum loan that lets you borrow against the equity you’ve built up in your home. Unlike a line of credit, you get one payment upfront and repay it over a fixed term with a fixed interest rate. Think of it as a second mortgage, except it’s designed to give you cash for whatever you need right now.
Here’s how it works: Let’s say your home is worth $300,000 and you have $200,000 remaining on your primary mortgage. Your equity is $100,000. With our home equity loans, you can typically borrow up to 80% of your home’s value, meaning you could access a significant portion of that equity. After you apply, we’ll review your credit and finances and order an appraisal to verify your home’s current value. Once you’re approved and everything’s finalized, you’ll receive your funds quickly. From there, you’ll make fixed monthly payments on that home equity loan over your selected term.
Because your home serves as collateral, lenders typically offer much better rates on home equity loans than they would on a personal loan or credit card. That’s part of why these loans make sense for many homeowners when they need access to substantial funds.
Why Choose a Home Equity Loan from Choice One?
We’re not a mega-bank operating out of a distant headquarters. We’re Choice One Community Credit Union, rooted right here in Wilkes-Barre, Hazleton, Plains Township, Kingston, and Old Forge. When you work with us on a home equity loan, you’re working with people who live in the same communities you do.
- No Closing Costs: Closing costs on a home equity loan can run anywhere from $2,000 to $5,000 with many lenders. With us, there are none.** So more of what you borrow goes toward what you actually need.
- Fixed Rates: Our fixed rate home equity loans mean your interest rate stays the same for the entire life of your loan. No surprises, no payment fluctuations. You know exactly what you’ll pay each month.
- Competitive Rates: As a credit union, we’re member-owned and not-for-profit. That structure lets us pass better rates directly to you. When you compare home equity loan rates across the market, you’ll see the difference.
- Fast Approval and Funding: We keep things moving. From application to closing, our streamlined process typically takes less than two weeks, and you’ll receive your funds shortly after.
- Flexible Terms: Whether you want to pay off your home equity loan in 5 years or 15 years, we’ve got options that fit your budget and timeline.
- Local Service: Need to discuss your application in person? Stop by any of our NEPA branches. Prefer to chat by phone? Our loan officers are happy to walk you through everything.
How Much Can You Borrow?
The amount you can borrow depends on your home’s current value, how much you still owe on your mortgage, and your overall financial picture. Most lenders, including us, allow you to borrow up to 80% of your home’s appraised value minus what you owe. So if your home is worth $250,000, you have up to $200,000 in total borrowing capacity (80% of $250,000). If your primary mortgage balance is $150,000, a home equity loan could get you $50,000 in fresh funds. Subject to credit approval.
To figure out your specific borrowing capacity, you’ll need to know two numbers: your home’s current value (an appraisal will confirm this) and your existing mortgage balance (check your latest mortgage statement). Our loan officers can help you work through these numbers and discuss what amount makes sense for your situation. If you’re not sure about your home’s current value in the NEPA real estate market, we can guide you through that conversation as well.
Keep in mind that lenders also evaluate your credit score, income, and debt-to-income ratio. These factors help us determine not just how much you can borrow, but the rate you’ll receive. Generally, a good credit score and stable income will put you in a stronger position for a competitive rate on your home equity loan.
Common Ways to Use a Home Equity Loan
One of the great advantages of a home equity loan is flexibility. You can use the funds for almost anything. Here are some of the most common reasons our members choose to tap their home equity:
- Home Improvements: Upgrading your kitchen or bath, adding a deck, replacing a roof, or finishing a basement. These projects not only improve your quality of life; they can also increase your home’s value.
- Debt Consolidation: Rolling high-interest credit card balances into a home equity loan with a lower fixed rate can significantly reduce your overall interest costs and simplify your monthly payments.
- Education: Whether it’s for your own degree, helping a child through college, or vocational training, education costs have gotten steep. A home equity loan can be a more affordable way to fund these goals compared to federal student loans or private lenders.
- Major Purchases: A new vehicle, boat, or other large purchase becomes more manageable with a lump sum of funds and a predictable payment plan.
- Medical or Emergency Expenses: Sometimes life throws a curveball. A home equity loan can provide the funds you need during an unexpected crisis without derailing your finances.
- Starting a Business: If you’re a NEPA entrepreneur with a solid business plan, a home equity loan can provide the capital to get your venture off the ground.
Home Equity Loan vs. HELOC: Which Is Right for You?
You may have heard about a HELOC (Home Equity Line of Credit) as well. Both products let you borrow against your home’s equity, but they work differently. A home equity loan gives you a lump sum upfront with a fixed interest rate and a fixed payment schedule. A HELOC works more like a credit card. You have a credit line available, you draw from it as needed, and your rate typically adjusts over time.
Which is better? It depends on your situation. Choose a home equity loan if you need a large amount of cash right now, want predictable monthly payments, and prefer the certainty of a fixed rate. A HELOC makes more sense if you might need funds gradually over time, want flexibility to borrow only what you use, and can handle a variable interest rate. Many homeowners actually have both. A home equity loan for their big project and a HELOC as a safety net.
How to Apply for a Home Equity Loan at Choice One
Step 1: Gather Your Information. Have your home address, current mortgage information, recent pay stubs, and a rough sense of your credit ready. You’ll also want to know approximately how much you’d like to borrow and what you plan to use it for.
Step 2: Submit Your Application. Once you’re ready to move forward, we’ll take your application. You can do this in person at a branch, over the phone, or online. We’ll order the home appraisal at this stage.
Step 3: Review and Approve. Our team will verify your information, review the appraisal, check your credit, and assess your finances. Most applications are approved within 3-5 business days, assuming everything checks out.
Step 4: Close Your Loan. You’ll sign the closing documents (we can do this at a branch, or electronically if you prefer). At closing, we’ll go over your final terms, answer any questions, and explain your payment schedule.
Step 5: Receive Your Funds. Typically within 1-2 business days after closing, your funds will be transferred to your account. You’re ready to move forward with your project or financial goal.
Frequently Asked Questions About Home Equity Loans
Can I use a home equity loan if my credit score isn’t perfect? We work with borrowers across the credit spectrum. A lower credit score might mean a higher interest rate, but it doesn’t automatically disqualify you. We’ll review your entire financial picture. Your income, debt-to-income ratio, and home equity to make a fair lending decision. Give us a call to discuss your specific situation.
What happens if home values in NEPA drop? Real estate values can fluctuate, but for homeowners who already have an approved home equity loan, your loan terms don’t change based on market conditions. Your rate stays fixed, and your payment remains the same. If you’re in the application phase and values have shifted, the appraisal process will reflect current market conditions, which is why getting an appraisal is part of our application.
How long does the entire process take? From application to funding, most home equity loans close within 10-14 days. The appraisal typically takes 3-5 days, and underwriting runs another 3-5 days. If there are any hiccups that need clearing up, it might stretch to three weeks, but that’s the exception, not the rule.
What if I’m not sure whether a home equity loan or a HELOC is right for me? That’s exactly why we’re here. Our loan officers are genuinely interested in helping you find the right product for your situation. Schedule a conversation at one of our Wilkes-Barre, Hazleton, Plains Township, Kingston, or Old Forge branches, and we’ll walk through the pros and cons of each option based on your goals.
Are there any hidden fees I should know about? No. Our home equity loans come with no closing costs.** That’s a promise. You’ll pay an interest rate that’s disclosed upfront, and that’s it.
Ready to Put Your Home’s Equity to Work?
Your home represents years of payments and investment. That equity is valuable, and you shouldn’t have to pay thousands in closing costs just to access it. At Choice One Community Credit Union, we believe home equity loans should be straightforward, affordable, and available to people who live and work right here in NEPA. Whether you’re a member already or you’re considering joining, we’d love to talk with you about what’s possible.
Stop by any of our branches in Wilkes-Barre, Hazleton, Plains Township, Kingston, or Old Forge to learn more. While you’re there, check out our other products too. From checking accounts to auto loans to membership. If you have questions about whether a home equity loan makes sense for you, our team is ready to help. There’s no obligation, and we genuinely want to see you succeed.
*APR=Annual Percentage Rate. Rates shown are for qualified borrowers and are subject to change without notice. Rate shown for the Home Equity Fixed Rate includes a .25% discount for auto deduct from a Choice One share or share draft account. Additional rates and terms are available. Rates shown for HELOC is a special introductory rate for a 6-month period and in effect until 6/30/2026. At the end of the introductory rate term, the rate converts to the Prime Rate. Maximum Rate is 18.00%. Minimum Rate is 5.00%. Minimum monthly payment $100.00. The annual percentage rate can change quarterly on the first day of January, April, July and October. There is no limit on the amount by which the annual percentage rate can change during any one year period. Contact the credit union for complete details.
**No Closing Cost Promotion applies to owner-occupied properties only. Third party fees will be reimbursed for the cost of originating your loan excluding any property tax or transfer fees. Fee Reimbursement–The lender may have paid some third party fees associated with this loan. Please refer to the Closing Disclosure provided prior to loan closing for an itemization of third party fees paid by the Borrower (if applicable), and those paid by the Lender on the Borrower’s behalf. The Borrower agrees to reimburse the Lender the actual amount of bona fide third party fees paid on the Borrower’s behalf, as permitted by applicable law, if the loan is paid off within twenty four (24) months after consummation.
