Quorum Federal Credit Union is an online banking institution that offers a well-rated mobile app and services across the US. Quorum has an ATM network of 100,000 terminals and 5,000 shared service centers nationwide.
As a credit union, Quorum prides itself on offering products that focus on the needs of its members. Its motto is “Banking that’s good. For you.” Quorum Federal Credit Union was also named one of the best credit unions in the U.S. for 2021 by Bankrate.
Quorum offers two types of home equity lines of credit, or HELOCs: an interest-only realty line for primary residences and an investment property HELOC for non-owner occupied homes. This lender offers low APRs for both products as well as 0.25 percent APR discount if you open a Quorum checking account and maintain a minimum balance of $5,000. Customers who maintain a minimum checking account balance of $50,000 are eligible for a 0.50 percent discount.
If you’re a Quorum member or are considering becoming one, one of its two HELOC products may be a great fit for you.
Quorum Federal Credit Union snapshot
|Loan types offered||HELOC|
|APR range||Interest-only RealtyLine HELOC: 3.95% to 18% (with discounts)
Investment property HELOC: 4.95% to 18% (with discounts)
|Loan amount range||Interest-only RealtyLine HELOC: $10,000 to $500,000
Investment property HELOC: $10,000 to $250,000
|Minimum credit score required||Not specified|
|Repayment terms||10-year draw period with 20-year repayment period or 5-year draw period with 10-year repayment period|
|Average time to approval||Not specified|
Quorum advertises a few distinct benefits, including:
- Great discounts: You can get a 0.25 percent rate discount If you maintain a minimum balance of $5,000 in a Quorum checking account, or a 0.50 percent rate discount with $50,000 or more in a Quorum CD.
- No prepayment penalty: You won’t be charged a fee if you pay off the principal on your HELOC before the end of your loan period.
- Online application: For all of Quorum’s home equity products, you can easily apply online.
Quorum is not the best fit for everyone. Its home equity products come with some drawbacks, including:
- Not available in Texas: If your property is in Texas, you’re not eligible for any of Quorum’s home equity products.
- Closing costs: The borrower is responsible for closing costs on all Quorum home equity products.
- Origination fee: Quorum’s HELOC origination fee is $495; many lenders don’t have this charge.
Types of fees charged
Quorum home equity borrowers are responsible for closing costs, as well as a $495 origination fee. There are no application fees, annual fees or termination fees.
Fees for appraisal and late payments vary, and there are several fees for documents and for services such as making loan payments via automated telephone service. Mortgage tax may apply in some states.
Loan products offered
In addition to mortgage products, Quorum offers two HELOCs: the Interest-Only RealtyLine and the Investment Property HELOC. The differences between the products are the type of property they cover, the minimum APR, the amount you can borrow and the repayment schedule.
The rate cap is 18 percent on both options. The APR is a variable rate, plus or minus a margin that is based on the Wall Street Journal prime rate index. The rate will not increase or decrease more than 2 percent annually.
These HELOCs also offer relationship discounts. If you have a Quorum checking account and maintain a monthly balance of $5,000, you get a 0.25 percent rate discount. If you have a Quorum CD with at least $50,000 in it, you can get an additional 0.50 percent rate discount. For both discounts, you must meet the requirements when you originate your HELOC and for the life of your loan.
Interest-Only RealtyLine HELOC
Quorum’s Interest-Only RealtyLine HELOC starts at 3.95 percent APR. You can borrow up to 95 percent of your home’s equity with a credit line up to $500,000. This HELOC also has a 10-year interest-only draw period followed by a 20-year principal and interest repayment schedule.
Investment Property HELOC
Quorum’s Investment Property HELOC allows you to borrow up to $250,000 on your non-owner-occupied single- to four-family home, condo or townhouse. This product has a five-year draw period when you make interest-only payments and a 10-year repayment period when you repay principal and interest. Rates start as low as 4.95 percent APR.
How to qualify for a home equity loan with Quorum
To qualify for a Quorum HELOC, you must be a member of the credit union. Quorum does not disclose a minimum credit score on its website, but you’ll likely need a credit score of at least 680.
All loans are subject to approval, and your APR will depend on credit history, loan amount, property usage and the combined loan-to-value, or CLTV, which is how much equity you are borrowing versus the value of your home.
How to get started
To apply for a Quorum HELOC, you can fill out an online application after logging into your online banking account. Not a member? You can apply for membership on the website and then get started on the HELOC application.
Quorum’s Member Service team can be reached by email form on the website or by phone at 800-874-5544 Monday through Friday from 8:30 a.m. to 7 p.m. ET. In addition to product information, a membership application and an ATM finder, the Quorum website features a Learning Hub with helpful articles, how-to guides on using the mobile app, budgeting tools and more.
How Bankrate rates Quorum Federal Credit Union
|Bankrate Score||4.0||Scoring factors|
|Availability||4.0||Lower score due to some lacking information|
|Affordability||3.6||Low minimum APR but origination and other fees|
|Customer experience||4.5||Online access and M-F customer support|
To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.
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.