Accounts & Services

Yes, there are two types.

Our first program is an Interest Only line-of-credit plan which requires monthly payments of interest only until the final principal balance is due at the end of seven years. This program offers great flexibility when making your monthly payments.

Our second program is a fixed payment, rate, and term program where the entire loan amount is disbursed upfront and a fixed payment amount is made on a monthly basis until the loan is paid in full. We offer 5, 7, 10 & 15 year fully amortized loans and a 7 year fixed rate loan with up to a 30 year amortization and a balloon payment due at the end of 7 years.

The home equity plan is a line-of-credit secured by the equity in your home. A line-of-credit is established, then you are able to draw from your account whenever you need money for a major purchase, education, or home improvement. You don't have to complete a lengthy application each time you make an advance.

If this loan is for a bridge loan, meaning this will be a second mortgage on your existing home and the funds will be used to purchase a new home, the maximum loan to value is limited to 90% for the first and second mortgages combined. If the first mortgage loan for the new home is not financed by the ACU, a $350 application fee will apply. At the time of payoff, an early closure fee up to $350 will be added to the payoff letter for all home equity loans to cover the fees incurred by the ACU.

If a new first mortgage is obtained through ACU, you will be required to pay only the actual fees associated with obtaining the bridge loan, and the application fee and early closure fee will be waived.

Any promotional rates offered by ACU will not be applicable for a bridge loan.

Approximately two weeks after signing your loan agreement, you will receive a book of checks that can be written for your purchases, etc. These checks will clear against your line-of-credit and interest will begin to accrue at that time. You can also call the credit union and ask us to send a check to you, or we can advance funds and deposit them directly into your ACU account. An advance can also be made through Home Banking.

A home equity loan/line-of-credit plan can be used to consolidate existing high cost debt, finance a car, make home improvements, or pay for college or other educational expenses. Other uses include wedding expenses, computers, recreational vehicles, etc.

The loan/line is secured by a first or second mortgage on your home equal to the amount approved. The home must be a residence owned by you and located in the states of Illinois or Idaho. We are unable to grant a mortgage/lien on vacant property or mobile homes. If you sell your home, the entire balance of your loan must be repaid in order to clear our lien from the title to your home.

After you complete and submit your loan application, a representative will contact you to review your request. At that time, the loan requirements and cost will be explained. Also, we will let you know what information is needed. In addition to your credit application, we will need verification of your income, a copy of your homeowner's insurance policy, a copy of your tax bill, a statement from your first mortgage holder, as well as authorization to check credit and order an appraisal/title search.

Credit approval is usually granted within 24-hours of receipt of a complete application package. We anticipate that the entire process will take 2 to 3 weeks. The appraisal, credit report, and title search are ordered immediately after your application is approved and you authorize us to proceed. When these are returned, we will contact you to schedule a closing.

As a general rule, the interest you pay on a home equity loan/line is deductible on your personal tax returns, however, the IRS rules place limitations on the amount of interest you can deduct depending on the size and purpose of the loan. We recommend that you consult your tax advisor for details.

The amount is determined by the net value of the applicant's home and the ability to repay. In addition, you must meet ACU's standards of credit worthiness. Each request is unique and will be judged on its own merits.

The value of the home is determined by a professional appraisal of market value. The net value is equal to 85%* of the appraised value less any mortgages or related liens or liabilities. Here is an example of how to calculate the net value (available equity) in your home:

*Loan or line amounts can exceed 85%, but there is a higher rate for amounts between 85.01% - 90% Loan to Value

The maximum line-of-credit is $200,000 and the minimum line is $10,000.

The maximum fixed loan is $200,000 and the minimum loan is $5,000.

Your current first mortgage, if you have one, will not be affected. Our lien must be the only remaining recorded lien on your home except for your first mortgage. Any other mortgages or liens must be paid-off by our loan.

The interest rate for fixed rate loans are set in accordance with current market rates, and is fixed for the entire life of the loan.

For lines-of-credit, the interest rate (APR) for all advances and for any existing balances is indexed to the prime rate listed in the Money Rates column of the Wall Street Journal on the last business day of each calendar month. The plan offered by Argonne Credit Union has tiered interest rates that are based on the credit line and determined as follows:

Rates effective as of 11/13/2008

If the property is non-owner occupied, 1% must be added to the rates shown above. The maximum Loan to value would be 70%.

If the loan-to-value exceeds 85% or greater, 1% must be added to the rate.

The line-of-credit has a variable rate that is subject to change each month. The rate can increase or decrease over time, and will never be more than 16% APR or less than 5% APR.

Regular monthly payments are required under both plans. They are explained in detail below.

Fixed Rate Plan - Fixed payments are made monthly until the loan is paid in full. Fixed payments are also required on the 7 year fixed loan with up to a 30 year amortization, and a balloon payment due at the end of 7 years. There will be an early closure fee up to $350 if the loan is paid off and closed within the first 12 months.

Interest Only Home Equity Line - The minimum monthly payment will cover all interest that has accrued for the month, with a minimum payment due of $100 per month. The monthly payment amount will be calculated at the end of each month, based on the outstanding principle balance. The entire amount of the loan is due at the end of seven years. There will be an early closure fee up to $350 if the line is paid off and closed within the first 12 months.

With all Argonne Credit Union loans, larger payments can be made at any time without penalty (with the exception of closing the Interest Only Home Equity Line or Home Equity loan within the first 12 months). Payroll deduction or allotment payments can usually be arranged.

All fees for your home equity application are paid by ACU, with the exception of bridge loans. Fees will be paid by the credit union for the first home equity loan/line established. Borrowers are required to pay all fees associated with refinancing an existing ACU home equity loan/line of credit, with a minimum fee of $125. There are no points charged and there is no annual maintenance fee.

For all loans and lines-of-credit, there will be an early closure fee up to $350 if the loan / line is paid off and closed within the first 12 months.

Once your Interest Only line-of-credit is established, future advances are quick and easy. You will be issued a book of checks that you can write anywhere they are accepted. We can also send you a check or deposit the advance into your Argonne Credit Union account. An advance can also be made through Home Banking. There is no charge to make an advance. Although the minimum initial advance of $5,000 will be disbursed on the first day following the expiration of the rescission period, future advances can be made for as little as $500. Advances may be made at any time during the contract period. This draw period may be refinanced at your option.

If you have a first mortgage, your first mortgagee will usually maintain a fund to pay real estate taxes and homeowner's insurance. Copies of your paid tax receipts and current insurance policy will be needed for our files. Our agreement requires that homeowner's insurance is maintained and taxes are current at all times.

Yes. Ask your agent to add Argonne Credit Union as the 2^nd mortgagee and mail a copy of the policy to Argonne Credit Union: Attn: Real Estate Dept.

Home Equity loans are not assumable by any buyer of your home and must be repaid at the time of sale.