Would you like more information on a Home Equity Line of Credit?
- Apply For A Home Equity Loan!
- View our current rates
- Calculate your payment amount
(Note: Home Equity Lines are calculated over a 20 year term)




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Would you like more information on a Fixed Rate Home Equity Loan?
- Apply For A Home Equity Loan!
- View our current rates
- Calculate your payment amount
(Note: Fixed Rate Home Equity Loan terms may be as long as 15 years)   



 Limited Time Offer: Open a New Home Equity Line & Pay 2.49% Annual Percentage Rate!!

Comparing Home Equity Loans and Lines of Credit

Your home equity is the difference between what you owe on your mortgage (and on any other home loans) and the market value of your home. You build equity as that difference grows - when you repay mortgage principal to decrease the amount you owe, or when your home's value increases.

You can borrow against that equity when you need cash, using either a home equity loan or a line of credit. Both offer a number of advantages over other types of financing, including:

  • Interest Savings. Home equity loans and lines typically have much lower interest rates than other types of financing, such as credit cards and personal loans.
  • Tax Benefits. Just like your first mortgage, the interest you pay on a home equity loan or line is usually tax-deductible. Consult your tax advisor about the deductibility of interest.

Comparing Home Equity Loans and Credit Lines

Home Equity Loan

Home Equity Line of Credit

 What You Get

A single lump-sum payment
for the full loan amount.

A revolving source of cash that you can
draw from as needed.

 How You Use It

To finance large one-time expenses
that have a definite cost.

To finance ongoing expenses or misc.
purchases, like a credit card.

 How You Repay

Repay the full loan amount over
a specific time period, at a fixed
interest rate.

Make payments on the outstanding
balance, at a variable interest rate.


It offers simple repayment terms,
and the security of knowing your
payments will never increase.

It's there when you need it, and you
only make payments on what you use.



Home Equity Lines Of Credit

A variable-rate credit line secured by your principal residence in Maryland, Virginia, Pennsylvania, Delaware or the District of Columbia, your Home Equity Line Of Credit has an interest rate that is based on the Prime Rate as published in the Wall Street Journal. A discounted introductory rate is usually available for the first months of the loan. The maximum line may be up to 90% of the value of your home less your existing mortgage that will not be paid off with the loan proceeds. Third mortgages are not permitted unless the second mortgage is held by LM Federal. Once your loan is settled at the Credit Union, or at one of several locations convenient to you, funds may be accessed conveniently with check-writing at no cost. Closing costs are waived for loans with a credit limit of $20,000 or greater. Note: closing costs paid by the credit union will be added to the loan payoff if the loan is closed within three years of origination (paying the loan to zero does not mean the loan is closed).

Home Equity Line of Credit Disclosure (PDF) 

The minimum monthly payment due is based on the balance when a loan advance was last given. The minimum payment is calculated by amortizing your new loan balance of a 20-year term at the current interest rate in effect. You may repay your loan by convenient payroll deduction, by automatic transfer from a Credit Union account or the mail. To calculate a payment, consult our online loan payment calculator.

Send an email to a Loan Specialist at loans@lmfcu.com

In The Market For A New House?  Click here to learn more



Fixed-Rate Home Equity Loans  

This borrowing option is a fixed-rate installment loan secured by your primary residence in the Maryland, Virginia, Delaware, Pennsylvania or the District of Columbia. Members with good credit will qualify for our lowest rates and be able to borrow up to 90% of the value of their home. Repayment terms of up to 15 years are available. There are no points, balloon payments, credit report or application fees. Closing costs are waived if the loan amount is $20,000 or greater. NOTE: Closing costs paid by the Credit Union will be added to the loan payoff if the loan is closed within three years of origination. The Credit Union may require the prepayment of the home appraisal fee if the property value is in doubt (you would be advised of this requirement after you apply). 

For loans of less than $20,000*, closing costs for the loan may be paid at settlement by the member or taken from the loan proceeds. Closing costs include fees for a title search, attorney fees, county and/or state taxes and fees, recording and release fees, lien and/or judgment reports, etc. Ask for a closing cost estimate prior to submitting an application. Closing costs, which range from $280 to $1,500, will vary based on fees and taxes charged by your local and/or state government.
*The home appraisal fee is normally paid the the Credit Union. The cost of the appraisal will be added to the loan payoff if the account is closed within one year.

Send an email to a Loan Specialist at loans@lmfcu.com

In The Market For A New House?  Click here to learn more

Other Information

You may apply for a home equity loan online, by phone during regular business hours (800) 410-0501, option #2, by fax or in person. Applications that meet our lending requirements are approved within 24 hours of receipt. Your home appraisal is then ordered (if an appraisal is required); results are received in less than a week. Your settlement date is then scheduled, typically within one week. For Maryland residents, settlements are held at the Credit Union office or by meeting our mobile settlement officer at a location convenient to you. For DC, VA, DE and PA residents, the settlement is held at the office of a title company in your area.

The home must be your primary residence and zoned for residential use; mobile homes are not eligible. Adequate property insurance and flood insurance (if your home is located in a flood plain) must be maintained on the home during the life of the loan. LM Federal is an equal housing lender.

Loan to Value Maximum loan may be as much as 90% of the appraised value of your home (for fixed rate equity loans) and as much as 90% of the appraised value (for home equity lines) less any existing mortgage that won't be paid off with the new loan proceeds ($150,000 maximum for home equity lines, $100,000 for fixed rate home equity loans), depending on your credit history. Additional rate discounts apply for lower Loan to Values (LTV's). For example:

Appraised Value


X up to 90%




Less 1st Mortgage

 - $120,000

Maximum Loan

$ 69,000

First Mortgages

At LM Federal, we understand that applying for a mortgage can be an intimidating task. That's why we've teamed up with PHH Mortgage Services to bring you a new, technologically advanced method of obtaining a mortgage. As one of the largest and most successful mortgage originators in the nation, PHH Mortgage Services promises easy, convenient and competitive loans. Together, we can provide your loan decision over the telephone or online, while you wait in the convenience of your home or office. In most cases, we can have all the answers you need within 20 minutes. For additional information, please click here.

NMLS ID# 408903

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