Amplify Credit Union: 2022 Home Equity Review

Amplify Credit Union is based in Austin, Texas and was founded in 1967 by IBM employees. Although Amplify home equity loan products are only available to homeowners in Texas, the credit union offers low fees and flexible maximum loan amounts for those who qualify.

Amplify the credit union

The credit union has five branches across Texas. You must become a member of a credit union to be eligible for its home equity mortgage loan and line of credit, or HELOC. Although its branches are only in Texas, it offers other banking services in all 50 states.

Amplify Credit Union: At a Glance

Types of loans offered

Home Equity Loan

HELOC

APR range

From 6.17%

From 6.75%

Loan amounts

Starting at $25,000. The maximum amount depends on the amount of equity in your home

Starting at $25,000. The maximum amount depends on the amount of equity in your home

Credit score requirements

N / A

N / A

Repayment Terms

Five to 20 years

Drawdown over 10 years, repayment over 10 years

Average approval time

12 days minimum

12 days minimum

Amplify is best suited for borrowers who live in Texas and want to join a credit union. There is a lot of ways to joinfrom living in the Lone Star State to becoming a member of the American Red Cross.

You can borrow up to 80% of the value of your home with Amplify. If you’re looking to receive a lump sum of cash at a fixed interest rate, a home equity loan may be right for you. However, if you need different amounts of money over a long period of time — to finance a major home renovation, for example — a variable interest rate HELOC makes more sense.

Keep in mind that Amplify’s home equity loan interest rates increase with the term of your loan. So, for example, if you want to pay off your loan over a long period of time, your interest rate may increase to as high as 7.20% for a 20-year (240 month) home equity loan.

You can use the “Help Me Choose” tool on the Amplify website to determine which type of loan best suits your needs.

What we like

  • Flexible maximum loan limit: A homeowner who has outstanding credit and significant home equity has more flexibility in the maximum amount they can borrow.
  • Minimal fees: As required by Texas law, a lender can only charge a fee of up to 2% of your loan amount, which benefits you as a borrower because in some cases lenders can charge up to 5% of the total amount of your loan in fees.

What we don’t like

  • Only available in Texas: Amplify Home Loans are only available to members who live in Texas. The credit union, however, offers nationwide banking services.
  • Short repayment period: Amplify’s HELOC option only has a 10-year repayment period, which is short compared to the 20-year repayment period typically offered by many lenders.
  • Minimum Withdrawal Requirements: Your initial HELOC withdrawal must not be less than $10,000 and each subsequent withdrawal must be at least $4,000, giving you limited flexibility. Even if you don’t need all the money you need to withdraw, you will still have to pay interest, which will make your loan more expensive over time.

Home equity loan options

Amplify offers both home equity loans and HELOCs. For qualified borrowers, the credit union also offers home improvement loans at lower interest rates if you work with a contractor to renovate your home. Amplify is also behind the purchase of mortgages.

Costs

While there are no application fees or prepayment fees with Amplify, you will be charged a closing fee of $325 regardless of the size of your loan. One of the benefits of taking out a home equity loan in Texas is that the total amount of fees you will pay cannot exceed more than 2% of your loan.

How to qualify

Your credit score and credit history are the primary factors Amplify uses to decide whether or not you qualify for its home equity loans (Credit Union, however, does not disclose its minimum credit score requirements ). In addition to your FICO scoreyou’ll want to have enough equity built up in your home as well as verifiable, adequate income and a low debt-to-income ratio, or DTI (most lenders prefer to see a DTI of 36% or less, but no more than 43% ).

Begin

You can apply in minutes using the Amplify website. If you are approved for a loan, the funds will be available to you four days after your loan is closed. Before you begin, make sure you have all of your financial documents ready to submit on the Amplify website. Additionally, you should expect to provide the standard documents needed to verify your income, such as pay stubs, your W-2 form, and tax returns. You will also need supporting documents to show that you are current on your existing monthly mortgage payments.

Customer service

Amplify Credit Union offers a live chat option available on its website, as well as live phone support available Monday through Friday from 11:30 a.m. to 8:30 p.m. PT and Saturday from 12 p.m. to 5 p.m. PT. When it comes time to close your home equity loan, you will be required by Texas law to close in person at an Amplify branch.

Live phone support is available for general inquiries at 512-836-5901 or 800-237-5087.