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Home Equity
as low as
APR is the Annual Percentage Rate. As of 10/10/2023, the quoted interest rate assumes a first-lien, 75% loan-to-value (LTV), 60-month term, and a minimum credit score 740. Credit criteria apply. The actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, credit history, and collateral. Offer is subject to change without notice. Restrictions may apply. Membership with Arkansas Federal is required for this offer.

Turn your home's value into cash!

Wanting to tackle a home project, fund a vacation, consolidate debt, or even plan a dream wedding? With Arkansas Federal Credit Union, using the value of your home couldn’t be easier or more affordable. Even if you have no intention of selling your home right now, today’s hot housing market can lead to increased equity that you can use for a variety of projects or other financial needs.

Use the funds for anything:

  • Home Improvements
  • Debt Consolidation
  • Vacation
  • A Dream Wedding
  • Emergency Fund
  • Or anything else

Features & Benefits

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No Change to Mortgage

Keep your current mortgage rate and term while accessing equity (a separate loan).

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Up to 95% Financing

Borrow up to 95% of your home’s value—much more than the max 85% of most lenders.Borrow up to 95% of your home’s value, minus your mortgage balance.

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$0 Application Fee

There’s no cost to get pre-qualified. That’s a savings of $500!

More Great Benefits

Use the money for anything.

Use your money for just about anything—home improvements, debt consolidation, vacation, a dream wedding, emergency funds, or anything else.

Larger borrowing potential.

Depending on the amount of equity in your home, you might be able to obtain larger sums not possible through other types of loans, such as personal loans.

Get one lump sum.

Once approved, you’ll enjoy one lump sum to repay monthly.

Stable, fixed rates.

Regardless of what happens in the market, your rate won’t change.

Lower rates.

With a home equity loan, you can enjoy a lower rate than most credit cards or personal loans.

No prepayment penalties.

Want to pay your loan back faster? No problem. We won’t charge any fees for paying it back sooner.

Same, consistent monthly payment.

Since your rate remains fixed, your monthly payment will also remain the same throughout the life of the loan. 

Tax advantages.3

Your loan may be tax deductible if you choose to use the funds to improve your home.3

Questions? We have answers!

What is home equity?

“Home equity” may sound complicated, but it’s actually simple. Home equity is the value of your home minus what you still owe on your mortgage. So, if your home is worth $200,000, and you owe $150,000 on your mortgage, you have $50,000 in equity. The real question is—what could you do with your home’s equity?

What’s a Home Equity Loan?

A Home Equity Loan allows you to get a lump sum amount upfront to repay monthly with fixed, predictable payments.

How much can I borrow?

With Arkansas Federal, you can borrow up to 95% of your equityBorrow up to 95% of your home’s value, minus your mortgage balance. —more than what most lenders allow at a maximum of 85%. For example, if your home value is $200,000, but you owe $150,000, then you have $50,000 in equity, and we’ll allow you to finance 95% of that or $47,500.

What about fees?

There’s no application fee – that’s a savings of $500! We also don’t charge an origination fee. It’s all part of our goal to save you money!

What happens to my mortgage?

Absolutely nothing. Your mortgage remains untouched. A home equity loan is separate from your mortgage, so you’ll keep your current mortgage rate and term.

Are there other options?

Our fixed-rate home equity loan is a great option if you want the stability of a monthly payment that will not change over the life of your loan. But we also offer variable rate Home Equity Lines of Credit (HELOCs) with more of a revolving credit line, similar to a credit card. If you’re not sure which one is right for you, give us a call at 800.456.3000, and we’ll go over your options.

Is a Home Equity Loan tax deductible?

Depending on how the funds are used, you may be able to deduct the interest paid on your loan. Consult with your tax advisor regarding interest deductibility as tax rules change.3

Get Started. It's Easy!

Apply online. There’s no cost to apply and the application process is easy.
Have questions? Call us at 800.456.3000 or visit your local branch.

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