Home Equity Line of Credit (HELOC)

Put the power of the equity that is already under your roof to work for you with a Home Equity Line of Credit or HELOC. The resources are there when you need them, but you don’t make payments until you borrow the money.

 

Homeowners with greater than 25% equity may qualify for a home equity line of credit in which the home serves as collateral, subject to credit approval. The borrowed money can be used for almost any purpose, including remodeling, home repairs, medical expenses, college tuition, debt consolidation, or as a backup in case of emergencies. 

 

Advantages of a Home Equity Line of Credit:

• A revolving line of credit is approved for a maximum amount and can be used and repaid repeatedly — Funds are available whenever you need them without going through the loan approval process over and over.
• Funds are accessed by check. — Easy access to cash when needed. You don't need to contact the bank each time you want to make a draw against the loan. Use Online Banking to deposit funds into checking or savings account and make loan payments.
• Interest assessed on the outstanding balance — Interest is charged only on the actual amount advanced, typically resulting in lower monthly payments compared to a conventional loan with a principle and interest payment. 
• Rates are typically lower than most other consumer loan products, so you save money. Balloon payment will often result at loan maturity. Offer of credit is subject to credit approval.
• Interest paid may be tax deductible (check with your tax advisor)
• Once established, your home equity line of credit is there when you need it to use over and over again — You can improve your home, consolidate personal obligations and make major purchases like a new car, or fund important investments.