Bank
Happy
with a Home Equity
Line of Credit!

What is a Home Equity Line of Credit (HELOC)?

A HELOC is a revolving line of credit that allows you (the borrower) to draw from it when needed, up to the approved amount using the equity in your home as collateral.

Benefits of a HELOC:

  • Easy access to funds through use of checks or a special Visa® card2
  • Interest only monthly payments
  • Adjustable rate options
  • No annual fee for the first year

A HELOC can help with:

  • Home improvements
  • Major purchases
  • Consolidating high interest debt
  • Paying tuition expenses

Home Equity FAQs

  • What is a Home Equity Loan? toggle accordion

    A home Equity loan is a fixed rate and term loan that uses the borrower’s equity in the home as collateral.
  • Why choose a home equity loan? toggle accordion

    A home equity loan is best for a borrower looking for a fixed payment, rate and length of term for a one-time larger purchase.
  • What could you do with a home equity loan? toggle accordion

    A Home Equity Loan is typically used for larger one-time expenses like home improvements, car purchase, education, and much more.
  • What are the benefits of a Home Equity Line of Credit (HELOC)? toggle accordion

    You can use a line of credit as you need it. It provides easy access to funds through use of checks or a special Visa® card*, offers adjustable rate options and has interest only monthly payments. In some situations, the interest may be tax deductible, consult with your advisor.

    *Home Savings Visa® debit cards are issued and administered by Elan Financial Services.

  • Can I arrange to have fixed payments? toggle accordion

    Yes, there are multiple payment options.
  • How do I access my Home Equity Line of Credit (HELOC)? toggle accordion

    A HELOC provides easy access to funds through use of checks or a special Visa® card2.
  • Is there a draw period for the Home Equity Line of Credit (HELOC)? toggle accordion

    There is a Draw Period of 10 years after the account is opened during which advances and purchases may be made, and during which reductions to principal are not required (unless credit limit has been exceeded), followed by a 10 year Repayment Period. During the Repayment Period, the minimum monthly payments amortize the amount of the outstanding balance at the end of the Draw Period.
  • What is the difference between the interest rate and the annual percentage rate (APR)? toggle accordion

    The interest rate is the cost the borrower pays each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges. An annual percentage rate (APR) is a broader measure of the cost of borrowing money, also expressed as a percentage rate. In general, the APR reflects not only the interest rate but also any points, fees and other charges that the borrower pays to get the loan.
  • How do I apply? toggle accordion

    Apply online at HomeSavings.com/HomeEquity or apply at the nearest Home Savings branch.
  • How do you decide if I qualify? toggle accordion

    Approval is typically determined based on a combination of things such as your credit history, the amount and type of loan, the value of the property, and the amount of equity (property value less current lien amounts).