Sunmark FCU, Schenectady, N.Y., has introduced a new mortgage product that will allow borrowers throughout the region to use their home equity to secure a 3.99% loan.
The HomeFlex will be available for anyone in the Capital's six-county area with an existing home loan and can be used to for home improvements, college tuition or financing an auto, according to Frank DeGraw, head of mortgage financing at the $400 million credit union.
"We feel this is going to be gang-busters once people hear about it," DeGraw told the Credit Union Journal. "There's been a lot of excitement internally too, from employees who know this is a great rate and that there's going to be a lot of interest."
The initial rate of the variable-rate product is 3.99%, good for five years. The rate cannot be increased more than 2% a year after that.
The loan was created from requests for a low cost, flexible borrowing option that will enable members to meet a variety of financial needs. Sunmark plans to hold the loans in portfolio, said DeGraw.
The credit union serves residents of Albany, Schenectady, Montgomery, Saratoga, Schoharie and Rensselaer counties. Credit Union Journal is an affiliate of National Mortgage News.
