Connexus Credit Union: 2020 Home Equity Review

Connexus Credit Union provides home equity loans and HELOCs in addition to auto loans, personal loans, student loans, credit cards and banking products.

Headquartered in Wausau, Wisconsin, the credit union’s primary branches and ATMs are located in Wisconsin, Minnesota, Ohio and New Hampshire. But it’s part of the CO-OP shared branch network with more than 5,600 shared branches throughout the U.S. and over 54,000 surcharge-free ATMs.

Connexus serves more than 360,000 members throughout all 50 states. It prides itself on maintaining a member-focused institution with values that include integrity, respect and open and honest communication.

Prospective borrowers will find numerous home equity product options and a robust online experience.

Connexus Credit Union snapshot

Benefits

Getting a home equity loan with Connexus comes with a number of benefits, including:

• Dedicated home equity team: Borrowers seeking a home equity loan or HELOC can call a dedicated representative to get personalized service throughout the process.
• Online application process: Borrowers are able to apply entirely online, although those who desire more personalized service are able to apply via phone.
• High borrowing limits: You can borrow up to 90 percent of your home’s equity with a fixed-rate home equity loan.

Drawbacks

Connexus may not be the right choice for everyone. Before signing up, consider the following:

• Membership is required: Borrowers are required to join the credit union in order to get a loan. To join, you must be affiliated with a member community or company. You can also join the credit union’s charity, Connexus Association, by making a one-time $5 donation.
• Limited footprint: If you’re looking for in-person help, Connexus has branches and ATMs in only four states, although you may be able to make “select transactions” in one of its partner branch locations.

Types of fees charged

Connexus 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, a convenience fee of $9.95 for paying by debit or credit card online ($14.95 by phone) and a forced place insurance processing fee of $12.

It doesn’t specify an origination fee or appraisal fee for any of its products.

Notably, the rates quoted for its HELOC products are introductory rates. After the introductory period (either six or 12 months), the rate may move up by as much as 2 percentage points.

Loan products offered

Home equity loan

The fixed-rate home equity loan from Connexus allows you to borrow up to 90 percent of your home’s equity. It has a minimum loan amount of $5,000, and rates start as low as 4.482 percent APR. Repayment options range from 60 to 240 months, or five to 20 years.

HELOC

HELOCs from Connexus come with variable introductory rates starting as low as 3.49 percent APR. That rate can be locked in for six months with an 80 percent LTV. A rate of 3.99 percent APR can be locked in for 12 months at 80 percent LTV. After the introductory rate-lock period ends, rates and terms are subject to change.

HELOCs allow borrowers to take out as much as they need, whenever they need it, up to the credit limit. The minimum loan amount is $5,000.

The draw period on this HELOC is 15 years, and there’s a 15-year repayment period. Minimum payments are 1.5 percent of the amount borrowed.

Interest-only HELOC

The variable introductory rate for an interest-only HELOC is 3.49 percent APR, which can be locked in for six months with an 80 percent LTV. A variable rate of 3.99 percent APR can be locked in for 12 months with an 80 percent LTV.

The terms and rates are subject to change after the intro period ends. As with the standard HELOC, borrowers can take out as much as they need whenever they need it up to their credit limit. It has a minimum loan amount of $5,000.

The draw period and repayment period are both 15 years. Finance charges start accruing on the day an advance is made.

5/1 ARM home equity loan

The 5/1 adjustable-rate mortgage option from Connexus comes with a variable rate starting as low as 5.013 percent. The rate becomes variable after the initial five-year term and then adjusts annually with a minimum annual cap of 2 percent and a lifetime cap of 6 percent.

Homeowners can borrow up to 90 percent of their home’s equity with this loan, with a minimum loan amount of $5,000. Repayment options range from 60 to 240 months.

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

While Connexus doesn’t advertise many strict eligibility requirements, it does advise that people shopping for a mortgage have a credit score of at least 640 and a debt-to-income ratio below 43 percent. Borrowers for its home equity products must also have a combined loan-to-value ratio of 80 percent to qualify.

Applicants will need to provide proof of income and get a home appraisal. The credit union won’t finance mobile homes.

Perhaps most importantly, applicants will need to become a member of the credit union before signing up for a loan. Membership is available to members of certain groups or residents of select counties in Connexus’ service area. Potential borrowers can also become a member by paying $5 to the Connexus Association.

How to get started

If you’re interested in getting a home equity loan or line of credit from Connexus, you can start the process online at connexuscu.org or by phone at (800) 845-5025.

Applying online requires only a few steps. You’ll select your loan product, provide personal information and details about your property, submit your application and then wait for approval.

If you have questions, the call center is available Monday through Saturday. Questions can also be sent through the credit union’s contact page, by email at info@connexuscu.org or over online chat.

How Bankrate rates Connexus Credit Union

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.