A home equity line of credit is a revolving credit that can be drawn on incrementally at different times.
The amount of the line of credit is determined by taking a percentage of the appraised value of the home and minus the balance owed on the existing
mortgage. Income, debts, other financial obligations, and credit history are also factors in determining the credit line amount. Some lenders will charge membership or maintenance and transaction fees every time you draw on the line. Interest is typically
variable instead of fixed.2
Once the line of credit is approved and processed, you can tap into the funds whenever you need them. This gives you the flexibility to fund projects big and small — whether you’re upgrading your bathroom
or remodeling your whole home.
- Borrowers who need varying amounts of funds for different purposes at different times
- Borrowers who will need quick access to their home equity at a later time
- Ability to borrow small sums periodically instead of one lump sum
- You’re only charged for interest when the money is deducted
- Zero closing costs3
- No annual servicing fee
Depending on your credit and your home’s market value, lines of credit are available for up to $350,000.4 To begin using your home equity line of credit, you can write Equity Checks, use your HELOC debit card for purchases, or transfer
funds from your line of credit to another account.