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Home Equity Loans

home equity loans

What can your home equity do for you?

The equity in your home could be the perfect source for a loan.


A home equity loan can be an excellent choice for financing a large, one-time expense. Use the money for home improvements or repairs, college expenses, unexpected emergencies or any other purchase that requires a considerable sum of cash.

With an ALEC Home Equity Loan, you’ll enjoy a competitive, fixed rate. A fixed term. And steady monthly payments. Plus, interest paid on a home equity loan may be tax-deductible.**

ALEC Home Equity Loan highlights:

Closing costs up to $500 paid by ALEC^

$5,000 minimum loan amount

3, 5 and 7 year terms available

Potential for a 0.50% loan discount off standard home equity loan rates***

Home Equity Loan Rates

TypeAPR* as low as
Second Mortgage — 36-Month Fixed Rate 1,85.00%
Second Mortgage — 60-Month Fixed Rate 1,85.75%
Second Mortgage — 84-Month Fixed Rate 1,86.75%
* APR = Annual Percentage Rate. All loans subject to credit approval. Rates subject to credit history, term and other factors. Not all applicants will qualify for our lowest rates. Rates can change daily.
1 Returning loan members who have a current loan with ALEC and are applying for a new loan will automatically receive a 0.50% APR rate discount. New loan members who do not have any current loans with ALEC must have an ALEC Checking Account (Free or Rewards) with $500 in direct deposit per statement cycle AND be enrolled in E-Statements to be eligible for the 0.50% APR discount. Discount not valid on credit cards, mortgage, Personal Lines of Credit and Home Equity Line of Credit.
8 Home Equity Loan: The rate displayed includes a 0.50% APR rate discount. Returning loan members who have a current loan with ALEC and is applying for a new loan will automatically receive a 0.50% APR rate discount. New loan members who do not have any current loans with ALEC must have an ALEC Checking Account (Free or Rewards) with $500 in direct deposit per statement cycle AND be enrolled in E-Statements to be eligible for the 0.50% APR discount. Rates subject to credit history, term, and other factors.

Your Savings Calculator

Interested in saving more money? If you’re currently paying a higher rate on a loan at another financial institution, consider refinancing it. This calculator allows you to enter your current information, and then shows you how much money you could save with a loan from us.

ALEC Home Equity Loan FAQs

What are the differences between a Home Equity Loan and HELOC?

With an ALEC Home Equity Loan, the loan is closed-ended. The rate on a Home Equity Loan is fixed and has a defined term. The loan and payment amounts are set. This is not an open line of credit.

With an ALEC HELOC, this loan is open-ended. It has an introductory rate and then a prevailing variable rate after the introductory rate. The prevailing rate is based on the Prime Rate and is subject to change monthly. In addition, your HELOC payment can be interest only or principal and interest. You can also continue to use the open line on your HELOC for an extended period of time. This means that you can use funds on your HELOC for a project, pay it off, and then use the line again for a separate project.

Does the interest rate on the Home Equity Loan remain fixed for the duration of the loan?

Yes. The interest rate on an ALEC Home Equity Loan remains fixed for the duration of the loan term.

What are the costs associated with a Home Equity Loan or HELOC?

ALEC absorbs the majority of closing costs for a Home Equity Loan or HELOC. The member is responsible for the $350 appraisal fee. Minnesota members are also responsible for paying a mortgage registration tax.

How long does it take to close on a Home Equity Loan or HELOC?

You can close your Home Equity Loan or HELOC in as little as 30 days.

Are there any pre-payment penalties with a Home Equity Loan or HELOC?

There are no pre-payment penalties with a Home Equity Loan or HELOC.

Does ALEC offer Home Equity Loans or HELOC's in all fifty states? Or is this product for members that live in specific states?

No. ALEC does not offer Home Equity Loans or HELOC's in all fifty states. Home Equity Loans and HELOC's are currently available in IL, WI, OH and MN at this time.


All loans subject to credit approval. ALEC currently offers home equity loans in IL, WI, OH and MN. Loans available up to 80% LTV (loan-to-value).
* Rates subject to credit history, term, and other factors. Amortization up to 15 years. Loans will be renewed at the end of the 60-month term, with options to reapply or pay in full at that time. Home Equity Loans/Lines are available in Illinois, Ohio, Wisconsin and Minnesota only and limited to owner occupied properties. ALEC will waive closing costs up to $500 for fees including, Title Insurance and Recording Fees.
** Consult your tax adviser for details regarding your situation. Not intended to be tax advice.
*** ALEC members will automatically earn a 0.50% APR loan discount if they are a new member applying for a loan within the first 60 days of membership OR if they are a returning ALEC loan member. Existing members that don't meet the above criteria earn the 0.50% APR discount with a $500 monthly direct deposit into an ALEC Checking account and enrollment in E-Statements.
# Maximum loan to value may be reduced in declining property value markets. (less any outstanding liens)
^ ALEC will waive closing costs for fees including, title insurance and recording fees up to $500. You are required to have homeowner’s insurance on the property. All borrowers will be required to pay a $350 appraisal fee at closing. Minnesota applicants are responsible for a mortgage registration tax.
NMLS# 421478. View a complete list of all other NMLS numbers.