Q. What is a Finish Line Loan?
A. It is a short term, no cost, low rate first lien position loan. The loan gives our members a fixed amount of money that is paid back over a shorter time period, between three to ten years. Members will make fixed payments every month that reduce the loan amount until it is paid off.
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Q. Who would this program be ideal for?
A. This program is ideal for members who do not owe a large amount on their first mortgage. So this program may not work for everyone and you will still have to qualify for the new payment. It is however ideal for retirement planning or small home upgrade projects so members can own their home without a mortgage payment much sooner than with many traditional mortgage loan products. With no cost and great low interest rates, this is the perfect plan for those looking to make their home their own ‐ FASTER!
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Q. Why pick a short term fixed program?
A. A shorter term fixed loan with a low rate will allow members to pay off their home and own it free and clear much faster than a conventional 30‐year fixed loan. For example, if you took out a 30‐year fixed loan in 2005, you will not own your home until 2035. If it was refinanced today for 10 years, it will be paid off in 2021. The monthly payment may be higher, but that is because so much more of the payment is going to reduce the principle balance and the amount of interest members will save over the life of the loan will be very significant. Please see the attachment to this email with examples.
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Q. Is the loan for refinances only?
A. No. The member who owns their home free and clear can also take money out for home improvements, education expenses, travel etc. With a shorter term for payback and lower interest rate this can be very beneficial and with a fixed rate there is no need to worry about payments going up. The loan is for first lien position only.
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Q. How can the funds from a Finish Line Loan be used?
A. Members can use funds for refinancing existing debt or for cash out such as personal, family, or household needs. Consolidating debt, financing home improvement projects, and paying for a child’s education are common reasons to make use of the funds from this great low rate no cost program!
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Q. Does a Finish Line Loan constitute a lien on my house?
A. Yes. KeyPoint Credit Union will take a deed of trust the home.
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Q. What happens if the member sells the house before the finish line loan is paid off?
A. The member will need to pay any outstanding balance in full, including any early termination fees if applicable.
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Q. How do members apply?
A. Call 888‐255‐3637, apply online, or visit any branch.
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Q. How soon will the member know if they have been approved for a Finish Line Loan?
A.We can often pre‐qualify an application within 24 hours of an online application. Once the application is approved, the home equity department will be in contact with the member the day of the approval.
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