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BENEFITS
Loan
Program
Description
Union members usually get the best interest rates and
lending terms from a credit union. But most credit unions
do not lend more than $2,500, and even fewer will lend
more than $5,000. This program provides a source for
AFGE members to obtain unsecured loans from $2,500 up
to $15,000 with a longer repayment period than banks
and most credit unions. The interest rates are substantially
lower than those of finance companies, where historically,
union members borrowed larger sums.
Vendor
Household
Bank, f.s.b.
700 Wood Dale Road
Wood Dale, IL 60191
Features
*
Lower interest rates.
* Apply by mail or phone.
* No application fee.
* High loan amounts: $15,000.
* Longer repayment periods (up to seven years).
* Bills can be consolidated for lower monthly payments.
* Option to skip payments.
* 1/4% (.25%) reduction for automatic payment.Eligibility
All
current members are eligible to apply for these benefits.
An annual fee is waived as long as the individual remains
an AFGE member.
Compare
Interest Rates
Finance companies often charge an interest rate of 19%
to 26% or more.
Interest
Rate
Interest rates are fixed for the life of the loan. The
interest rate may vary depending on the applicant's
credit history. The rate begins at around 12%.
This
program is limited to members who reside in the United
States, Virgin Islands and Puerto Rico.
Home
Equity Loans
For
members who own their own home, a home equity loan may
be the best vehicle to borrow money. One advantage is
that a home equity loan may be tax deductible, whereas
a personal or unsecured loan would not be deductible.
There
are two options:
REGULAR
HOME EQUITY:
Members may borrow up to 85% of the equity in their
home, from a minimum of $5,000 to a maximum of $250,000.
The maximum term is 15 years.
100%
HOME EQUITY
This loan product meets the needs of a member who owns
a home but currently does not have enough equity to
qualify for a standard home equity loan. Members who
qualify may borrow from $5,000 up to $25,000.
Special
Features
*
Members can choose a closed-end loan that provides
a set time to repay the amount
* borrowed at a fixed interest rate OR
* Instead of borrowing a set amount, members can choose
to have a line of credit with a pre-set amount available
as needed.
* Members can save 1 4% off the APR by choosing automatic
re-payment through their checking account.
Interest Rates
The low interest rates are determined by the product
and credit worthiness of the applicant.
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