Home Equity Line of Credit (HELOC)

What is a home equity line of credit?

A home equity line of credit, or HELOC, is a revolving credit line. It’s secured by the equity you’ve built in your home and can be used as needed — like a credit card. You only pay interest on what you draw from your HELOC.

HELOC Benefits:

• Standalone HELOC now available.
• Standard HELOC: Close concurrently with a first mortgage to avoid MI or jumbo financing.
• Maximum CLTV: 89.99%.
• Line amounts of $50,000-$500,000.
• 680 minimum FICO score.
• Variable interest rate based on the Wall Street Journal prime rate.
• Multiple draw options.
• Interest-only and principal and interest product options available.
• Available on 1–4-unit primary residences, including warrantable condos, PUDs and modular homes.

Low cost

Because HELOCs are secured, they typically have lower rates than personal loans or credit cards. In addition, there are no application fees or closing costs1 and the interest may be tax deductible.

Flexibility

With HELOCs you can borrow funds over time as needed. They also offer flexible repayment options, including interest-only payments for those who qualify.

Convenient access

You can draw on your HELOC by using convenience checks or electronically transferring money to your checking account.

What could you do with a HELOC?

Home improvements

Whether you’re looking to remodel your kitchen or build an outdoor living area.

Debt consolidation

You may be able to save money by using a HELOC to consolidate higher-cost debt, such as credit cards and student loans.

Major purchases

If you’re planning on funding major expenses, such as college tuition, the flexible as-needed availability of funds and the low interest rate may make a HELOC a wise choice for financing.