Connexus Credit Union: 2024 Home Equity Review

Benefits

• You can borrow up to 90 percent of your home’s equity with the credit union’s fixed-rate home equity loan.
• You can apply for a home equity product entirely online or call a dedicated representative to get personalized service throughout the process.

Drawbacks

• You’ll need to join the credit union in order to get a HELOC or home equity loan. To join, you must be affiliated with a member community or company, or join the Connexus Association by making a one-time $5 donation.
• If you’re looking for in-person assistance, Connexus has branches in three states (Wisconsin, Minnesota and Illinois).

Home equity loan products offered

Connexus Credit Union offers a fixed-rate home equity loan and variable-rate home equity lines of credit (HELOCs), the latter of which includes an option to make interest-only payments during the draw period. The fixed-rate home equity loan allows you to borrow up to 80 percent of your equity at a minimum loan amount of $5,000. The repayment terms range from five to 15 years.

Meanwhile, HELOCs come with variable introductory rates for six months, also with a minimum loan amount of $5,000. The draw period is 15 years, followed by a 15-year repayment term. You’ll need to make a minimum payment of 1.5 percent of the amount borrowed, at least $25. Note: The credit union’s home equity products aren’t available in Alaska, Hawaii, Maryland or Texas.

Types of fees charged

Connexus Credit Union doesn’t charge an annual fee for any of its home equity products. However, it does charge closing costs of $175 to $2,000 depending on the property location and loan terms. It also charges a returned loan payment fee of $15 ($9 by phone) and a force-placed insurance processing fee of $12. The credit union doesn’t specify whether it charges an origination fee or appraisal fee for any of its products.

How to qualify for a home equity loan with Connexus Credit Union

To be eligible for a home equity product from Connexus Credit Union, you’ll need a combined loan-to-value (CLTV) ratio of 80 percent (in other words, at least 20 percent equity in your home). You can only take out a HELOC or home equity loan on a primary residence or eligible second home (no investment properties).

More importantly, you’ll need to become a member of the credit union, either by being eligible based on membership criteria or making a donation to the Connexus Association. How to apply with Connexus Credit Union If you’re interested in getting a home equity loan or line of credit from Connexus, you can start the process online, by email or by phone at 800-845-5025. The credit union’s call center is open from 7 a.m. to 7 p.m. CT Monday through Wednesday; 9 a.m. to 7 p.m. CT Thursday; 7 a.m. to 7 p.m. CT Friday; and 8 a.m. to 1 p.m. CT Saturday.

How Bankrate scored Connexus Credit Union

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.