A Guide to Mortgages & Home Equity Loans


Would you like to buy a home, but are worried you’d never qualify for a mortgage? Or maybe you just don’t know about the process behind it? Want to renovate, but can’t seem to save the extra cash?

Learn how you can answer these questions, and more.

What is a mortgage?

mortgage is a loan in which property or real estate is used as collateral.

You, the borrower, enters into an agreement with the lender where you receive funds upfront to make payments over a specified time period until it is paid back in full.

A mortgage is often referred to as a home loan when its used for the purchase of a home.

What is home equity?

Home equity is the homeowner’s interest in a home. This number can increase over time if the value of the property also increases or the mortgage loan is being paid off.

Basically, home equity is the portion of your property that you truly “own”.

Home equity is typically a homeowner’s most valuable asset.

Later in life, it will become of great value, so it’s best to understand how it works and how to use it wisely.

Well, how do they work?


Mortgages are for those who want to purchase a home, but do not have the full amount of funds for it. They can also be used to borrow cash for other projects using the home as collateral.

For example, let’s say you want to borrow $200,000 at 5.00% for 30-years, then your mortgage will come out to $1,073.64 a month.

Home Equity

The easiest way to understand home equity is to begin with the value of your home and subtract the money still owed.

For example, assume you purchased your home for $200,000, made a 20% down payment, and got a mortgage loan to cover the remaining $160,000.

This means that your home equity interest is 20% of the property value. Essentially, you “own” $40,000 worth of your home.

How can HRCCU help you?

We make our mortgage and home equity processes easy and pain-free. As a member of HRCCU, you are able to apply online for either or apply in person at any of our branch locations.