Unlock the Value of Your Home with a Flexible HELOC

A Home Equity Line of Credit (HELOC) is a revolving line of credit that uses your home’s equity as collateral. It works similarly to a credit card – you can borrow up to your credit limit, repay it, and borrow again during your draw period. The amount you can borrow is typically based on your home’s value and your existing mortgage balance.

A HELOC can be used for various purposes including home improvements, debt consolidation, education expenses, emergency funds, or major purchases. Since it’s secured by your home, it often offers lower interest rates than unsecured loans or credit cards.

Common eligibility requirements include: having sufficient equity in your home (typically 15-20%), a good credit score (usually 620 or higher), a stable income to support payments, and a healthy debt-to-income ratio. Your home’s value and current mortgage balance will also be considered.

A variable-rate HELOC has an interest rate that fluctuates with market conditions, typically based on a benchmark rate like the prime rate. A fixed-rate HELOC maintains the same interest rate throughout the term, providing consistent monthly payments. Some HELOCs offer the option to convert portions of your balance to a fixed rate.