All About Home Equity

What is Home Equity?  Equity is the amount the market value exceeds the amount owed on the property.  In plain English it is the amount of money you would have left after selling your house and paying off the mortgage. 

Where does Home Equity come from? Equity in your home generally comes from one of two sources:

  • You buy it with your down payment when purchasing your home and through the principal payments of your mortgage. 
  • It comes from increased market value giving you a larger spread between your mortgage balance and the price your home would sell for.

What about Sweat Equity?  This term describes the increase in market value after a house is repaired or fixed-up by the owner.  The "sweat" part refers to the physical labor and time invested to improve the property.  

How do you use the Equity in your home? The equity is not in a liquid or cash form you can use. It has long been a form of savings used to finance a bigger or more expensive home by selling it and using the equity or profit as a down payment in the new home lowering the monthly mortgage payments.

How do you access the Equity now? You can refinance your first mortgage in a higher amount getting cash back.  However, there are numerous fees associated with a first mortgage.  A simpler and less costly way to get the cash out of your house is a Home Equity Loan.  This is also called a second mortgage because it is a second lien against your property and nothing changes with your first mortgage. 

You put your house on the line so take a Home Equity Loan out from someone you trust - Wawa Credit Union!

We lend in the states of Pennsylvania, New Jersey and Delaware on your primary residence or vacation home provided the vacation home is not a rental property.  We lend up to 80% of the value of your home.

The formula we will use for determining the maximum loan amount is as follows:

Appraised value X .80 - mortgage balance(s) = the maximum amount available to borrow.


Calculation Example


Appraised value


Multiplied by  80%

X        .80

Equals 80% of the Value


Minus mortgage balance outstanding

  - 75,000

Amount available for a Home Equity Loan

=   45,000


Your cost is a $50.00 application fee plus a $225.00 processing fee.  There are no additional fees for the credit report, appraisal or recording.  

 We will offer home equity loan with a fixed rate with a minimum loan amount of $5,000.00.

**All Loans are Subject to Credit Approval**

Click for a preliminary application or go to the documents page and click on Loan – Preliminary Request / Pre-approval Form.


Life's Little Instructions

  • Learn to listen.
  • Every so often, push your luck.
  • Opportunity sometimes knocks very softly.
  • Think big thoughts, but relish small pleasures.
  • Leave everything a little better than you found it.
  • Never underestimate the power of a kind word or deed.
  • Never give up on anybody -- miracles happen every day.
  • Become the most positive and enthusiastic person you know.
  • Don't expect others to listen to your advice or ignore your example.
  • Judge your success by the degree that you're enjoying peace, health, and love.
  • Don't forget: a person's emotional need is to feel appreciated.
  • Don't use time or words carelessly, neither can be retrieved
  • Never waste an opportunity to tell someone you love them.
  • Treat everyone you meet like you want to be treated.
  • Smile a lot: it costs nothing and is beyond price.
  • Make new friends but cherish the old ones.

  August Quotes

A little girl asked her father, "Daddy? Do all fairy tales begin with Once Upon A Time?" He replied, "No, there is a whole series of fairy tales that begin with 'If elected I promise . . . '"

Politics is the gentle art of getting votes from the poor and campaign funds from the rich by promising to protect each from the other. Oscar Aminger

The problem with political jokes is they get elected. Henry Cate