Features of a Home Equity LOC
Cash Required at Closing
The Best Reward Home Equity LOC
Best Reward Home Equity Line of Credit
Up to 85% of the appraised value of your home minus your 1st mortgage.
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$150 to $250 (Depending on the Term of the Loan)
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Convenient FAQs about Home Equity LOC
What is a HELOC used for?
A home equity line of credit allows you to borrow against the equity in your home. How you choose to use the money is up to you. Popular reasons to take out a HELOC include making improvements to your home, consolidating high-interest debt, or funding emergency expenses.
While your options are endless, you want to ensure that your decision makes sense in your big financial picture.
How does a HELOC affect your credit score?
A home equity line of credit will impact your credit score, similar to a credit card. You want to be mindful of your utilization rate, which is the percentage of your credit limit currently being used. Having too much debt no matter the form can negatively impact your credit score.
How do payments on a HELOC work?
Payments on a home equity line of credit are similar to the payments you'd make on a credit card. The amount will depend on how much you borrow at any given time. The more you borrow, the higher your payments will be, and vice versa.
HELOC payments are unlike a home equity loan when you borrow a lump sum and make the same payment each month.
How much can you borrow on a HELOC?
You can borrow up to 80% of the value of your home with a home equity line of credit.
Here's an example. If the value of your home is $300,000 and the mortgage balance is $100,000, you have $200,000 in equity.
$300,000 x 80% = $240,000
$240,000 - $100,000 = $140,000
That means you can establish a HELOC with a limit of up to $140,000.
APR and payment vary depending on loan amount, term, applicable fees, credit score, and combined loan-to-value (LTV). All loans are subject to credit application and approval, receipt of property appraisal demonstrating acceptable real estate value, and acceptable title search result. Borrower must obtain and pay separately for Homeowners Insurance on real property securing the loan and Flood Insurance for property located in a Special Flood Hazard area. Borrower is separately responsible for Real Estate Taxes. Other conditions and restrictions may apply. Consult your tax advisor about the deductibility of interest. Programs and conditions are subject to change at any time.