MSU Federal Credit Union

SmartLine℠

A SmartLine℠ Home Equity loan is a hybrid between a home equity line of credit (HELOC) and a fixed-rate home equity loan. It is a revolving line of credit with the option to "lock" segments at fixed rates. Use our SmartLine Segment Calculator to estimate your monthly payments.

• Currently offered in Michigan, Illinois, Florida, Indiana, and Ohio
• A maximum of three segments can be locked at any given time, during the draw period
• Minimum segment amount is $2,500
• Segment repayment terms range from 12-180 months
• SmartLine℠ HELOC revolving variable interest rates and fixed segment rates available
• Segment rates determined at the time the segment is locked
• As a segment is paid down, it will replenish the line of credit availability
• $199 origination fee, plus valuation report fee and closing fee (if not closing at an MSUFCU branch)
• For properties in Florida, state mortgage recordation tax applies ($0.35 per $100 of credit limit)

Click the "Apply Now" button below to apply online, within ComputerLine, by phone or at a branch.

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How does a SmartLine℠ work?

A SmartLine Home Equity loan gives members the flexibility to have both a line-of-credit and fixed-rate loan options. Eligible properties include primary residences and owner-occupied second homes located within Michigan.

Once a SmartLine request is approved and finalized, members have the option of utilizing the funds as a variable-rate line of credit, meaning transferring the funds into their checking account to use accordingly. Members may also request to lock a Segment, which fixes a portion of the funds comparable to a loan at a fixed rate. Please note that interest is only charged on funds that have been borrowed. Segments must be at least $2,500 each.

After the first segment, there is $25 fee for each segment lock or unlock. To lock a Segment, contact the Credit Union by selecting the segment lock option within ComputerLine, the mobile app, by visiting a branch, calling 517-333-2424, or through the Message Center.

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What happens when I make payments?

Monthly payments are required once funds are borrowed from a SmartLine℠ Home Equity Loan. If there are no locked segments, the options for repayment are either monthly payments of 1% of the amount borrowed or Interest only, if eligible. These options are available during the 15 years of advances. After the 15 years, you will have 10 years to pay off the outstanding amount borrowed.

If there is a locked segment, repayment is made by making the fixed-rate monthly payment at the rate determined at the beginning of the lock. If there are multiple locks, the monthly payment would be the sum of the fixed-rate monthly payment of each.

If there are locks and money that has been borrowed from the line of credit, the monthly payment would be the sum of the fixed-rate monthly payment plus either 1% of the amount borrowed or interest only on the amount borrowed outside of the lock.

As payments are made, these funds replenish in your line of credit minus any interest paid. The amount owed will go down and credit availability will go up.

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What is a Fixed Rate Segment and why would I want that?

A Fixed Rate Segment is choosing to take a portion of your available line of credit and putting it into a fixed-rate that has a fixed monthly payment based on the term selected. The terms are a maximum 15 years or remaining term of the 25 year loan, whichever is less. A Fixed Rate segment allows a person to have a fixed-rate loan that has the same monthly payment for a specific amount of time - making budgeting easier.

For example, if you remodeled a bathroom for $10,000 and chose five years for the term of this segment, you would make 60 monthly principal and interest payments that will be fixed for the term. As you make payments on the locked segment, that money (minus interest) becomes available in the line of credit portion of your SmartLine℠ Home Equity loan.

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What are the term limits of a SmartLine℠ Home Equity Loan?

A SmartLine℠ Home Equity Loan has a term of 25 years. For the first 15 years advances may be taken from the available credit. After the advance period, there is a 10 year payback period. Once reaching the payback period, no other advances are able to be made from the SmartLine℠ Home Equity Loan. The interest rate you qualify for will be determined based on recent soft credit pull or credit report score and the amount owed will be broken down into 120 equal payments

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SmartLine Disclosure

What You Should Know About Your Home Equity Line-of-Credit

Smartline Home Equity Loan - How Does It Work

Privacy Notice

Reconsideration of Value

One SmartLine Home Equity Loan per household. Eligible properties include primary residences; owner-occupied second homes; condos; modular and manufactured homes; and one- to four-unit buildings with owner occupancy in one of the units. Properties must be located within Michigan, Illinois, Florida, Indiana, or Ohio. Consult with a reliable tax advisor about the deductibility of home equity loan interest. $199 origination fee, plus valuation report fee and closing fee (if not closing at an MSUFCU branch). For properties in Florida, state mortgage recordation tax applies ($0.35 per $100 of credit limit). You may only lock a segment of your loan during your draw period. There is no fee for the first segment; however, you will be charged a $25 fee for each subsequent segment. A fee of $25 will apply to requests to unlock a segment. Balances on segments reduce the availability on the line of credit. Your locked segment fixed interest rate will be determined based on your creditworthiness at the time your fixed-rate segment is approved. Actual APR will be determined by member's credit score at the time of the loan request. Rate subject to change. This product has a variable rate that is based on the market rate (prime plus margin). Your margin will be between 0.00% APR and 7.00% APR. Your overall rate (prime plus margin) will never fall below 2.00% APR, nor will it exceed 18.00% APR.

The segment monthly payment per $1,000 borrowed at 7.69% APR for a term of 60 months with 70% Loan-to-value (LTV) would require 60 monthly payments of $20.13 based on 30 days to first payment. SmartLine℠ loans can have three segments in addition to the line of credit. The payment is determined by adding together the segment payments and the line of credit payment.

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