Take on the world one project at a time with a SunWest Credit Union Home Equity Line of Credit (HELOC) that gives you the flexibility to use what you need, when you need it.
A Home Equity Line of Credit (HELOC for short) shows you the value of home ownership by allowing you to borrow money from the equity in your home.
When you apply for a line of credit, we'll add up all debts that use your home as collateral, subtract this from your home's value to calculate your available equity, and determine your credit limit.
Withdraw up to your HELOC loan's credit limit whenever you want, as many times as you want for up to 5 years, and use those funds toward anything you want without having to submit estimates or get approval.
Once your 5-year draw period ends, your HELOC loan limit is removed, and you no longer have access to withdraw funds.
During your repayment period, your monthly payments will be calculated over a 120-month (10-year) term during which you’ll pay back the principal balance + interest of your HELOC.
You’re not limited to using HELOC funds just on home improvements. Once your home equity line of credit is available on your account, you can use the funds just like a credit card but at a much lower interest rate than most cards.
Use your HELOC loan for crown molding, a dental crown, a diamond crown - whatever helps you feel like the king of the castle.
Give us a call and speak to one of our HELOC loan extraordinaires. They can go into more detail and even take your application over the phone. You can also apply online from the comfort of your own home.
A HELOC is great for those that want the flexibility to withdraw funds from their equity as needed without going through a new loan process each time. But what about those who have a specific budget in mind and want to pay the loan off quickly?
Compare the differences between a second mortgage and home equity line of credit to see which is the best option to achieve your goals.
Your amount of equity is determined by subtracting the current mortgage balance and any additional loans or line of credits using the home as collateral from the current home value.
SunWest lends up to 80% of your total appraised value.
Borrow as little as $5,000 and as much as $100,000.
Both second mortgages and HELOCs (home equity line of credit) are loans you take out using the equity you have available from your home’s value.
The difference between a second mortgage and a HELOC, is that a second mortgage is a closed-end loan where you get a lump sum and you pay it back each month over your specified term; whereas, a HELOC is a revolving line of credit similar to a credit card. You are approved up to a certain limit and can continue to use up to that amount for a specified period.
Your HELOC interest rate can only increase a max of 1% every 6 months, 2% annually.
That depends on your goals. A second mortgage is perfect if you only want to borrow a specific amount and pay it back. Second mortgages have a fixed monthly payment and a fixed interest rate.
- For example, you want to finance the installation of a new, total home security system and pay it back with a moderate to large monthly payment.
A home equity line of credit is great for people who want more flexibility in how much they borrow and how frequently. With a SunWest HELOC, you can use the credit line for up to 5 years, paying a percentage of the balance each month. Once the 5-year period ends, the line is closed, and you pay a fixed monthly payment for up to 10 years. HELOCs also have a variable interest rate that can increase a max of 1% every 6 months.
- For example, you will be doing home renovations that will include a lot of projects that you want to do one at a time, using the line as you go.
*APR = Annual Percentage Rate.
**LTV = Loan to Value.
See a representative for details.
1. Rates listed subject to change and based on the lowest current offer. Rates are determined by factors such as, but not limited to, loan term, credit score, and home value. Minimum and maximum loan balances may vary by term. All calculations listed in the chart above are estimates to illustrate loan and rate cost and should not be used as a formal quote. Please speak with a representative to quote your specific rate and payment.
