Loans
Borrow smart to build your future
Loans allow you to borrow money for large expenses like education, vehicles, or a home and repay it over time. Understanding how loans work helps you choose the right option, avoid unnecessary costs, and protect your long-term financial health.
Loans 101
Best practices
Here are some important lending best practices that you can use in your daily life.
Shop before you sign
Comparing lenders, rates, and terms can save you thousands of dollars over the life of a loan.
Look beyond the monthly payment
A lower payment can still mean paying much more in interest over time. Always review the total cost.
Borrow only what you need
The more you borrow, the more interest you pay and the longer debt stays in your life.
Understand your interest rate
Even small rate differences can dramatically change what a loan truly costs.
Prepare before applying
Strong credit, stable income, and savings improve loan approval chances and terms.
Avoid stacking debt
Multiple loans increase financial stress and reduce flexibility.
Review refinancing carefully
Refinancing can help, but only if fees, terms, and long-term costs truly improve your situation.
Terms & definitions
You need to know what things are before you can make sense of them. Here are some basic terms and definitions to help you better understand loans and the lending process.
Term |
Definition |
|---|---|
Principal |
The amount of money you borrow |
Interest |
The cost of borrowing money |
APR (annual percentage rate) |
The true yearly cost of a loan, including interest and some fees |
APY (annual percentage yield) |
The yearly amount you earn on savings |
Loan term |
How long you have to repay the loan |
Mortgage |
A loan used to buy property or real estate |
Home equity |
The part of your home that you truly own |
Personal loan |
A loan with fixed monthly payments used for many purposes |
Escrow |
An account that collects and pays property taxes and insurance |
Down payment |
Money you pay upfront toward a large purchase, like a home or car |
Refinance |
Replacing a loan to change the rate, term, or monthly payment |
Fixed vs. variable rate |
Fixed rates stay the same; variable rates can change over time |
Additional resources
Connect with SECU
In person or virtual. Connect with us when it’s convenient for you.
VISIT THE VIRTUAL FINANCIAL CENTER
SCHEDULE IN-PERSON APPOINTMENT
SCHEDULE VIRTUAL APPOINTMENT
Loans & lending FAQs
A home equity line of credit, or HELOC, works a lot like a credit card. It’s a flexible line of credit secured by your home’s equity, but with a “draw” period (typically the first 10 years of a HELOC) which you may access from your available balance. You can draw at any time from this balance up to your available credit limit for things like home improvement, a medical bill, or a family vacation.
Interest rates on HELOCs are usually variable rates. With a SECU HELOC, you can lock in up to three fixed-rate, fixed-payment subaccounts under one master line. Often the interest on a HELOC is tax deductible, although you should check with your tax advisor.
Mortgage interest rates are determined by a number of factors, including market and economic conditions, credit characteristics, personal financial situation, and the amount of the down payment or equity.
For our most current mortgage rates, visit our rates page.
Private mortgage insurance (PMI) is required on all conventional loans where the member either has less than 20% equity in the property, in the case of a refinance; or less than a 20% down payment, in the case of a purchase. The lender will obtain the insurance, and the fee will be included in the member’s monthly mortgage payment. It insures the lender against the member’s default on the loan.
Yes, we offer the following business loans to fit your short- and long-term needs:
- Commercial mortgage
- Business line of credit
- Business term loan
- Business credit cards
Loan qualifications differ depending on which loan you are applying for. The best way to find out if you qualify for a loan is to apply.
Your credit score plays a role in whether you qualify for a loan. To check yours, log in to online banking and click Credit Score.
A loan application can have an instant decision or take up to 4 days for a decision, depending on the type of loan or if we need to follow up and gather more information.
