Michigan Educational Credit Union

Need to make a big ticket purchase, finance a college education, consolidate bills, or tackle some other major expense? A Home Equity Loan from MECU is what you're looking for. We offer low rates, no closing costs, and the interest may even be tax deductible (please ask your tax advisor).

Curious what your payments would be or whether or not you might be eligible? Use our Home Equity Loan Eligibility & Payment Calculator to find out.

Please read the following before applying on line or printing and mailing your application

Disclosed Terms:

1. GOOD FAITH ESTIMATE: ALL COSTS AND FEES ARE WAIVED UNTIL FURTHER NOTICE.

a. Application Fee (payable at application)                   $190.00(e)          includes appraisal fee of $175.00

b. Closing fee (payable at closing)                                $100.00(e)

c. Title Insurance (payable at closing)                          $170.00(e)           (based on $20,000 title insurance policy)

d. Recording Fees (payable at closing)                         $ 30.00(e)

e. Flood Report                                                           $ 13.00(e)

f. Survey (if required)                                                    $          (e)

g. Other (if required)                                                     $          (e)

(e) = estimate

You have the right to a copy of the appraisal report used in connection with your application for credit. If you wish a copy, please write us at the address we have provided. We must hear from you no later than 90 days after we notify you about the action taken on your credit application or you withdraw your application.

2. VARIABLE RATE: This is a variable rate loan meaning that the Daily Periodic Rate and Annual Percentage Rate may vary based on the Loan Rate Index. The Annual Percentage Rate will be determined by subtracting 1/4 percent for credit limits from $10,000 to $49,999 and 3/4 percent from $50,000 and up to the average of the preceding calendar quarter Prime Rate as published in the Wall Street Journal Money Rates Column. There will be possible quarterly adjustments to the Annual Percentage Rate effective January 1, April 1, July 1, and October 1, of each calendar year. Any adjustment will be rounded to the nearest one quarter of 1%.

3. The Daily Rate is equal to the ANNUAL PERCENTAGE RATE divided by 365. The ANNUAL PERCENTAGE RATE shall never be more than 18% nor less than 4.0%. In no event will the ANNUAL PERCENTAGE RATE as applied to the loan balance increase more than 2 percentage points in one year. Refer to the Rate Sheet for Rates and Daily Rates.

4. Loan amount: The maximum established line of credit allowed will be calculated by taking 85% of the appraised value and subtracting what balance is due on an existing mortgage.

5. The minimum line of credit that can be requested will be Ten Thousand Dollars ($10,000). The maximum line of credit that can be requested will be One Hundred Twenty Five Thousand Dollars ($125,000). After the initial loan there is no minimum for draws. Payments are calculated at $12 per thousand or $9 per thousand, of the new loan balance (minimum payment $50).

6. You are allowed one increase within the draw period of 5 years at no cost. Should you submit more than one increase per draw period the Credit Union may hold you responsible for all fees.

7. FIXED RATE: This is a fixed rate loan and the Annual Percentage Rate is based on the Prime Rate the day of application. The rates are determined daily.

For loans up to 80% of the value, the 5-year rate is Prime-0.50 (but never less than 4.5% APR), the 10-year rate is Prime (but never less than 4.5% APR), and the 15-year rate is Prime+0.50 (but never less than 4.5% APR).

For loans of 81%-90% of the value, the 5-year rate is Prime+0.50 (but never less than 4.5% APR), the 10-year rate is Prime+1.00 (but never less than 4.50% APR), and the 15-year rate is Prime+1.25 (but never less than 4.5% APR).

Minimum loan amount is Ten Thousand Dollars ($10,000). Maximum cannot exceed One Hundred Fifty Thousand Dollars ($150,000). The ANNUAL PERCENTAGE RATE shall never be more than 18% nor less than 4.5%.

8. Rescission Period: As required by REG Z the three (3) day delay in monetary disbursement will be enforced from the loan settlement date.

Limitations and Restrictions

Property/residence of concern must be owner occupied (principal residence only - and located in the state of Michigan).

All multiple units considered must be eligible to have a lien registered.

All liens will be properly recorded in the county in which the property/residence resides.

The mortgage is not assumable.

Line-of-Credit will automatically cancel upon any delinquency or if the member moves.

Excessive draws keeping the outstanding amount at the limit is considered abusive and privileges will be suspended for at least (6) six months.

The following will not qualify for consideration of establishing a line-of-credit:

Undeveloped land

Pre-constructed housing units, such as a mobile home or portable modules without permanent foundations

New construction

Any request which would fall subsequent to an existing land contract

Any request which would fall subsequent to an existing second mortgage

Vacation home or secondary residence

Any property on which there is an arrearage in the property taxes

Any property that is zoned other than residential, i.e. commercial, industrial, etc.

Any property in which the title is held in the name of a trust

Any property on which there is a divorce lien

Any property other than single family - i.e., duplex, etc.

Applying has never been easier. You can apply online or print an application and mail it in. If you prefer you can contact one of our loan officers at

734-455-9200 (Plymouth)

734-261-1050 (Livonia)

734-761-7505 (Ann Arbor)

810-494-6000 (Brighton)

248-399-7474 (Royal Oak)

586-566-5599 (Macomb Township)

Please dial our toll free number, 1-888-261-3355, outside of the Detroit Metropolitan area.

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