No-Fee Home Equity Loan Special!*
Apply by Labor Day for No Closing Fees* and Excellent Rates
This promotional offer ended 9/4/2023.
A home equity loan from Lanco Federal Credit Union can be a great way to access funds you need for nearly any purpose. Click here to learn more about Lanco FCU’s home equity loan offerings.
Home Equity Loan FAQs
What are the pros and cons of a home equity loan?
Benefits of a home equity loan
A home equity loan can provide you with an affordable way to borrow funds for nearly any large expense. Because your primary residence is used as collateral, you can generally borrow a greater amount and enjoy a lower interest rate when compared to to other types of personal loans. The approval of a home equity loan is based on your credit and ability to repay, and the amount of equity available in your home. With a fixed home equity loan, your rate will not change after signing, so whether you choose a term as short as three years, or opt for a 10- or 15-year term, your monthly payment will stay the same over the entire course of the loan.
Because a home equity loan is a type of mortgage, the approval process generally takes four to six weeks, though sometimes it may take longer. There are many consumer-protection regulations that lenders must follow during the underwriting process, including observing a mandatory waiting period following the application, and a 3-day recision period after the loan signing. In addition to the time required, there are also some upfront costs associated with home equity loans that you must pay at closing, such as fees for your home appraisal or valuation and deed recording, to name a few. The lender will disclose all applicable fees that you will be responsible to pay, as well as any fees that they may waive—also called lender credits.
For individuals who may not have much equity available, or if funds are needed quickly, other borrowing options might be more beneficial or quicker to get an approval decision for than a home equity loan. For example, a loan secured by your vehicle may provide you with the ability to also borrow with a lower rate, but the application and funding process may take less than one week. For expenses that may fluctuate over time, you may find it more convenient to open a line of credit. If you’re not sure what type of loan is best for your borrowing needs, contact us to speak with a lender.
Do I need to be a member of Lanco Federal Credit Union to get a loan?
Membership is not required to apply
You do not need to be a member of Lanco FCU to apply for a loan from the credit union. However, you do need to meet the credit union’s eligibility requirements.
You are eligible to join Lanco Federal Credit Union if you live, work, worship, or attend school in Lancaster County, PA.
Additionally, if your immediate family or household member is eligible for membership, their eligibility may extend to you.
Membership is required to take a loan
If your loan application is approved and you want to accept the offer, you will need to become a Lanco FCU member to open the loan. Additionally, when you become a member, your whole family may be eligible to join and enjoy our member benefits.
How much does it cost to join the credit union?
There is no cost to apply for membership or join Lanco Federal Credit Union. The only requirement to maintain membership is that you keep a minimum deposit of $5.00 in your share savings account. This deposit is not a fee—it is the portion of your balance that shows your ownership in the credit union.
Can I learn more before applying?
Use our loan calculators to estimate your payments
We understand that you may want to see the how the numbers work out before you submit an application, which is why we provide free and convenient loan calculators. If you have a general idea of what your current credit score is, view our current rates above and use them for possible loan estimates.
Contact us with any questions
We know that there are many factors to consider when you’re trying to decide what the next best step is for your personal finances. Our member services team is happy to help answer any questions you may have. To connect with us, please fill out our contact form, text us, or call (717) 569-7180.
Our regular business hours are Monday through Thursday 9am–5pm, Friday 9am–6pm, and Saturday 9am–12pm.
*Advertised APR accurate as of 8/21/23 for borrowers with 750+ credit score. Rates vary based on borrower qualifications and loan term. Payment example: A loan of $40,000 at 5.99% APR will require 120 monthly payments of $443.88. Closing costs will be waived for applications received 7/1–9/4/23 that meet offer qualifications: 2nd-lien home equity loans only with balances of $40,000 or more, not to exceed 80% Loan-to-Value. New money only. One- to four-unit owner-occupied residential properties located in Pennsylvania only. Property insurance required; flood insurance may be required. If loan is paid off within 24 months, closing costs will be added to payoff balance. Offer may be changed or withdrawn at any time.
About Loan-to-Value (LTV) Ratio: To calculate your available equity, multiply your home’s value by the LTV percent, then subtract your current mortgage balance.
For example: Value of Home [ $200,000 ] x 80% LTV [ 0.80 ] = [ $160,000 ]
[ $160,000 ] – Current Mortgage Balance [ $100,000 ] = Available Equity [ $60,000 ]