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Home Equity Loans

Home Personal Loans & Lines of Credit Home Equity Loans

Home equity line of credit (HELOC)

Unlock the power of your home’s equity using a HELOC. You’ll get the convenience of a flexible line of credit at an attractive rate; plus, you can lock-in a portion of your advanced funds into a fixed-rate payment plan so that your payments stay the same from month to month. Your interest may even be tax-deductible (though you’ll need to confirm that with your tax advisor).

How does it work?

HELOCs work a lot like credit cards. With a credit card, the bank establishes your credit limit based on your income and credit score. You can spend as much or as little as you want as long as you stay under that limit. HELOCs work under that same principle, but your credit limit is based on how much equity you have in your home along with your income. Since your home secures the line of credit, the limit is typically set by subtracting the balance you owe on your mortgage by a percentage of the appraised value of the home, which is typically set at about 90 percent. 

Example

  • You bought your home for $300,000 and owe $250,000 on it.
  • Your home appraises for $400,000.
  • With the standard 90 percent guidelines, you may be eligible for a credit line of $110,000.

Loans are subject to credit approval.

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