A Home Equity Line of Credit (HELOC) is a form of revolving credit in which your home serves as collateral. You can be approved for a specific amount of credit. Similar to a credit card account, you will have a maximum limit with which you may borrow at any time under the plan. Checks are usually provided in order to draw on your line.

To determine your credit limit, the amount is based on a percentage of the appraised value of your home, or “loan to value”. The repayment of the equity loan can vary by lender. Most home equity lines are set for a fixed period, such as 10 years, during which time you may draw money, called the “draw period”. After the draw period most lenders allow a repayment over a fixed period, for example, 10 years.

With most HELOCS, the interest rate is based on the prime rate. Therefore, you will have a variable interest rate that will have a lifetime rate cap which your rate cannot exceed. The monthly payment is configured on your line balance times your current interest rate divided by 12 months.

We offer many different lines of credit which vary in draw periods, interest rates, etc. We can also offer to those that qualify, a HELOC where there are no costs to the client.

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