LONG BEACH FIREMEN'S CREDIT UNION

THINKING ABOUT A 2ND TRUST DEED LOAN ON YOUR HOUSE?

Then Read This!

YOUR CREDIT UNION HAS ONE OF THE BEST DEALS ON
2ND T.D. LOANS AVAILABLE!
The most common 2nd. T.D. loan is the HOME EQUITY LINE OF CREDIT 2nd.. This is an open ended loan which permits you to borrow any amount up to the limits of the credit line. The terms are 15 years and it can be paid off and reaccessed anytime in the first 10 years. It carries a variable rate.  You can use the money for any purpose you wish such as buying another property, a vacation, a college education, home improvements etc.  In most cases the interest charges are tax deductible. Consult with your C.P.A. for technical information.

WHY IS OUR LOAN SUCH A GOOD DEAL?
OUR LOAN CARRIES A 5% LIFETIME CAP.
In contrast, most 2nd T.D. home equity line of credit loans offered by banks and S.& L.'s
have very high cap rates in the 13% to 15% range.

OUR LOANS ARE TIED TO THE 11th DISTRICT COST OF FUNDS.
This is a very stable and slow moving index, although it will go up with interest rate increases.
Our competitors often use indexes which tend to be much more volatile. Some examples are the prime rate, the 1 year treasury note or the LIBOR index. These indexes are very reactive to increases in short term interest rates.

HOW ARE PAYMENTS STRUCTURED?
Payments are based on the amount borrowed and the length of time remaining on the life of the
15 year contract. For example, say you have a $50,000.00 line of credit and you have used $10,000.00 to buy a car. Your payments are based on  $10,000.00. If you add another $5000.00 for a vacation then your new payment would be based on $15,000.00.

HOW MUCH CAN I BORROW?
LOANS CAN GO UP TO A MAXIMUM OF $200,000.00 AND ARE LIMITED TO
80% OF THE APPRAISED VALUE INCLUDING THE 1st. T.D..CALL OR COME IN TO THE CREDIT UNION FOR MORE INFORMATION.

If you don't have enough equity to get your loan from the credit union, please don't hesitate to ask me for advice or have me look at the terms of the loan. I will be more than glad to help you.
Sincerely,
Uncle Bill

**Disclaimer:  Every effort will be made to keep the figures on this website up to date, but sometimes changes have been made before the website is updated.  Due to the often fluctuating financial market, and the CU's policy of rate changes to reflect earnings, etc., the figures on this website should be used for estimates only.   Please contact the Credit Union prior to making any definite financial decisions.  In the event of a discrepancy between what is written here and the actual figure quoted by the Credit Union, the Credit Union's stated figures shall prevail.
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