Your amount of equity is determined by subtracting the current mortgage balance and any additional loans or line of credits using the home as collateral from the current home value.
second mortgage
As Arizona’s credit union, we know all too well the issues that can come up on a home – and we mean that literally. During monsoon season, it’s not uncommon to see roof tiles being literally lifted up in a harsh wind. Brave the southern Arizona seasons with SunWest, and we’ll help you maximize your home equity.
features you can appreciate
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the equitable facts
A closed-end second mortgage is a home equity loan that allows you to draw from the equity in your home so you can transform it into a safe haven and comfortable oasis without spending a ton out of pocket. This type of home loan is best for homeowners that have a specific purpose in mind–maybe a backyard renovation or adding an additional room, or even consolidating debt.
lock it in
With a fixed rate and term, you don't have to worry about fluctuations in the housing market.
choose your term
Create a payment based on your budget with terms all the way up to 180 months (15 years).
enjoy competitive rates
Money markets have variable rates that adjust based on the market. You never lose a cent if rates decrease, and when they increase, you earn more without lifting a finger.
pay any day
We don’t believe in prepayment penalties. If you’ve been kicking your debt repayment into high gear, we’d much rather celebrate with you!
max out
Get up to $150,000 on your closed-end equity loan at SunWest.
low closing costs
Get up to $150,000 on your closed-end equity loan at SunWest.
endless possibilities
Equity’s not just for home reno. Use the equity that you’ve built toward a large purchase, major life event, consolidating debt, + more.
check out rates + estimate your home equity loan payment
second mortgage home equity loan
15-year max term
APR as low
as 5.49%
as 5.49%
Payment of $4.58 per $1,000
get moving on that second mortgage
Be proactive with your equity. You don’t want to be kicking yourself during the intense heat of summer (we know, we know, it’s a dry heat) when your ac goes out. Not only is it miserable, but it’s a hazard to your family’s health. Whatever your big-ticket needs are, we’ve got a solution.
Speak to one of our mortgage gurus for more information or to submit an application over the phone OR apply online from the comfort of your own home.
try it on, see how it fits
A second mortgage is great for those who have a specific budget in mind, but what if you need more flexibility? See how a second mortgage and home equity line of credit match and where they differ.
you man be asking...
second mortgage
HOME EQUITY LIne OF CREDIT
HOW DO I ACCESS MY EQUITY?
funds dispersed as a lump sum
best for mid-term savings
HOW DO RATES DIFFER?
fixed rate
6 months
12 months
24 months
12 months
24 months
HOW DO PAYMENTS DIFFER?
fixed monthly payment
MINIMUM MONTHLY PAYMENT IS A PERCENTAGE OF TOTAL BALANCE DURING WITHDRAWAL PERIOD, THEN FIXED DURING REPAYMENT PERIOD
HOW MUCH CAN I BORROW?
UP TO 80% LTV
MAX OF $150,000
MAX OF $150,000
UP TO 80% LTV
MAX OF $100,000
MAX OF $100,000
WHAT ARE THE BEST USES FOR
EACH HOME EQUITY LOAN?
EACH HOME EQUITY LOAN?
BEST FOR PROJECTS AND PURCHASES WHERE YOU KNOW HOW MUCH YOU’LL BE PAYING AND WANT TO PAY IT BACK WITHIN A SPECIFIC TIMEFRAME
BEST FOR MULTIPLE PROJECTS OR PURCHASES THAT WILL BE BROKEN UP OVER TIME OR TO HAVE EMERGENCY FUNDS AVAILABLE WITH A LOWER MONTHLY PAYMENT
WHAT ARE THE DOWNSIDES OF
EACH HOME EQUITY LOAN?
EACH HOME EQUITY LOAN?
IF YOU NEED MORE THAN THE ORIGINAL AMOUNT YOU APPLIED FOR, YOU’LL NEED TO APPLY FOR A NEW LOAN
THE VARIABLE RATE + ONLY MAKING THE MINIMUM MONTHLY PAYMENT COULD COST YOU MORE IN INTEREST
WHAT ARE THE BEST FEATURES OF
EACH HOME EQUITY LOAN?
EACH HOME EQUITY LOAN?
- YOU KNOW EXACTLY HOW MUCH YOU’LL PAY WHEN YOU TAKE OUT THE LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
- FLEXIBILITY OF HAVING FUNDS AVAILABLE FOR 5 YEARS
- LOWER MONTHLY PAYMENTS
- LOWER MONTHLY PAYMENTS
*APR = Annual Percentage Rate. See a representative for details.**Please keep in mind we always pull credit for any new member as part of our identity verification process.
second mortgage
HOW DO I ACCESS MY EQUITY?
funds dispersed as a lump sum
HOW DO RATES DIFFER?
fixed rate
HOW DO PAYMENTS DIFFER?
FIXED MONTHLY PAYMENT
HOW MUCH CAN I BORROW?
up to 80% LTV
max of $150,000
max of $150,000
WHAT ARE THE BEST USES FOR EACH HOME EQUITY LOAN?
BEST FOR PROJECTS AND PURCHASES WHERE YOU KNOW HOW MUCH YOU’LL BE PAYING AND WANT TO PAY IT BACK WITHIN A SPECIFIC TIMEFRAME
WHAT ARE THE DOWNSIDES OF EACH HOME EQUITY LOAN?
IF YOU NEED MORE THAN THE ORIGINAL AMOUNT YOU APPLIED FOR, YOU’LL NEED TO APPLY FOR A NEW LOAN
WHAT ARE THE BEST FEATURES OF EACH HOME EQUITY LOAN?
- YOU KNOW EXACTLY HOW MUCH YOU’LL PAY WHEN YOU TAKE OUT THE LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
HOME EQUITY LIne OF CREDIT
HOW DO I ACCESS MY EQUITY?
WITHDRAW FUNDS AS NEEDED
HOW DO RATES DIFFER?
VARIABLE RATE
HOW DO PAYMENTS DIFFER?
MINIMUM MONTHLY PAYMENT IS A PERCENTAGE OF TOTAL BALANCE DURING WITHDRAWAL PERIOD, THEN FIXED DURING REPAYMENT PERIOD
HOW MUCH CAN I BORROW?
up to 80% LTV
max of $150,000
max of $150,000
WHAT ARE THE BEST USES FOR EACH HOME EQUITY LOAN?
BEST FOR MULTIPLE PROJECTS OR PURCHASES THAT WILL BE BROKEN UP OVER TIME OR TO HAVE EMERGENCY FUNDS AVAILABLE WITH A LOWER MONTHLY PAYMENT
WHAT ARE THE DOWNSIDES OF EACH HOME EQUITY LOAN?
THE VARIABLE RATE + ONLY MAKING THE MINIMUM MONTHLY PAYMENT COULD COST YOU MORE IN INTEREST
WHAT ARE THE BEST FEATURES OF EACH HOME EQUITY LOAN?
- FLEXIBILITY OF HAVING FUNDS AVAILABLE FOR 5 YEARS
- LOWER MONTHLY PAYMENTS
- LOWER MONTHLY PAYMENTS
how do i calculate how much equity i have available?
what is the max loan-to-value (ltv) i can go up to?
SunWest lends up to 80% of your total appraised value.
what is the minimum loan amount for a second mortgage?
The minimum loan amount for a SunWest Second Mortgage is $5,000.
what’s the difference between a second mortgage and a first mortgage?
A first mortgage is the primary loan that goes toward paying a home. This could be the loan you used for the initial purchase of the home or a refinance.
For example, you purchased a home for $300,000 by getting a loan from Bank A. Bank A places a lien on your home that’s removed once you pay off the loan. This is your first mortgage. 5 years later, you decide to refinance for a lower rate. The refinance would also be considered a first mortgage because it is still the primary loan that pays for the home.
A second mortgage, or home equity loan, is a loan you take out using the equity you have available from your home’s value.
For example, you owe $100,000 on your home, and it’s worth $300,000. You have $200,000 in home equity. You need a new stove, money for a wedding, and want to pay off some high-interest credit cards, so you take out a second mortgage for $100,000 with Credit Union A. Bank A has the primary lien and Credit Union A has a secondary lien on your home.
what’s the difference between a second mortgage
home equity loan and a heloc?
home equity loan and a heloc?
Both second mortgages and HELOCs (home equity line of credit) are loans you take out using the equity you have available from your home’s value.
The difference between a second mortgage and a heloc is that a second mortgage is a closed-end loan where you get a lump sum and you pay it back each month over your specified term; whereas, a HELOC is a revolving line of credit similar to a credit card. You are approved up to a certain limit and can continue to use up to that amount for a specified period.
should I get a second mortgage home equity loan
or a heloc?
or a heloc?
That depends on your goals. A second mortgage is perfect if you only want to borrow a specific amount and pay it back. Second mortgages have a fixed monthly payment and a fixed interest rate.
For example, you want to finance the installation of a new, total home security system and pay it back with a moderate to large monthly payment.
A home equity line of credit is great for people who want more flexibility in how much they borrow and how frequently. With a SunWest HELOC, you can use the credit line for up to 5 years, paying a percentage of the balance each month. Once the 5-year period ends, the line is closed, and you pay a fixed monthly payment for up to 10 years. HELOCs also have a variable interest rate that can increase a max of 1% every 6 months.
For example, you will be doing home renovations that will include a lot of projects that you want to do one at a time, using the line as you go.
