1. What is the difference between a HELOC and a Home Equity Master Line?

A HELOC is a flexible line of credit secured by your home’s equity but with a “draw” period (typically the first 15 years) which you may access from your available balance. You can draw at any time from this balance up to your available credit limit.  Interest rates on HELOCs are usually variable rates.

With a Home Equity Master Line, you have the flexibility of a Home Equity Line of Credit with the option to lock in up to (3) fixed rate, fixed payment sub-accounts under your Home Equity Master Line.  The best of both worlds! The advantage of a revolving home equity line and a fixed rate/fixed term option.
 

2. What is a Home Equity Master Line sub-account and why would I want one?

You can divide up your Home Equity Master Line into smaller portions called sub-accounts. A sub-account gives you the advantage of a fixed rate, fixed payment, and a fixed pay off schedule.
For example, let’s say you want to purchase an $8,000 kitchen countertop. You have a $20,000 credit limit on your Home Equity Master Line and no outstanding balance.  You can create an $8,000 sub-account and either lock in that amount at a fixed rate with fixed payments or allow the $8,000 to remain in your variable rate outstanding balance.
 

3. Is there a minimum dollar amount for a Home Equity Master Line sub-account?

$5,000.
 

4. Is there a maximum number of Home Equity Master Line sub-accounts?

We allow up to three fixed rate sub-accounts.
 

5. Is there a maximum dollar amount for a Home Equity Master Line sub-account?

No.  The total outstanding balance including all sub-accounts may not exceed your Home Equity Master Line credit limit.
 

6. Will I be billed separately for each sub-account? Do I need to make separate payments for each Home Equity Master Line sub-account?

You will receive a monthly billing statement for funds advanced on your variable Home Equity Master Line.  All funds that are locked into a fixed rate sub-account will be billed separately and appear on your monthly account statement.
 

7. What happens to extra payments? For example, if I pay $700 when the monthly amount due was $500, what happens to the extra $200?

The additional $200 will be applied to the principal balance for the home equity line of credit or sub-account you’ve chosen to make a payment to.  
 

8. How do I set up a Home Equity Line sub-account?

Simply go to our website at Mocse.org and click on Home Equity under the Loans tab.  You can send a secure lock request to our Loan Department for the amount you would like to establish for your sub-account.  You cannot exceed more than (3) fixed rate sub-accounts at one time.  You can also contact the credit union directly at 209-572-3600 or visit any branch location.
 

9. Is the interest on my Home Equity Master Line still tax deductible?

You should consult with your tax advisor for further information regarding deductibility of interest and charges.
 

10. Can sub-accounts be set up at any time, even if there is already a balance on the Home Equity Master Line?

Yes, you may set up a fixed rate sub-account at any time but may use ONLY the available balance.
 

11. Are there closing costs associated with a Home Equity Master Line?

Fees to open a Home Equity Master Line range from $241.00 to $1,118.00 based upon the collateral valuation.  Property insurance is required. Additional fees can include the following:  Lock Fee: $25.00, Annual Fee: $25.00 and Application Fee: $0.  
 

12. How can I access my Home Equity Master Line?

You can access your Home Equity Master Line a number of ways.  You will have check writing capabilities, transfer access in online and mobile banking or you can contact the credit union directly.
 

13. Can I pay off my sub-account using funds still available on my Home Equity Master Line? 

Yes, you can transfer funds from the Master Line to pay off an existing fixed rate sub-account.