Heloc: Turn your home equity into a credit line
Features You’ll Love
A home equity line of credit (HELOC) gives you flexible access to your home’s value. Use funds as needed, pay it down over time, and enjoy lower rates than most credit cards.
Low, competitive variable rates
No pre-payment penalties
Easy online application process
5-year draw period
Lower payments during draw period (1.5% of balance)
Pay the balance back over a 10-year repayment term
Easy access to funds — online or in person
Check current interest rates and run the numbers to estimate your monthly loan payments before making a decision.
A HELOC gives you flexible access to your home’s equity over time. From your credit limit to how you draw and repay funds, here’s what to expect along the way.
Most homeowners choosing to tap into their equity are deciding between a second mortgage and a HELOC. Compare the key differences to find the option that works best for how you plan to use your funds.
HELOC (Home Equity Line of Credit)
Second Mortgage
How You Access Funds
Lump sum upfront
5-year draw period, 10-year repayment period
Interest Rate
Fixed rate
Variable rate
Monthly Payments
Fixed monthly payment
Minimum monthly payment is a % of your balance during the draw period, then becomes a fixed payment during the repayment period
Loan Structure
One-time loan
Revolving line of credit (reuse as you repay)
Access Period
Full amount received upfront
5-year draw period + 10-year repayment
How Much You Can Borrow
Up to 80% LTV* (max. $250,000)
Up to 80% LTV* (max. $250,000)
Best For
One-time projects or purchases with clear payoff timeline
Ongoing or phased projects with flexible access to funds
Considerations
Fixed amount so you have to apply again if you need more
Variable rates may change, and lower early payments can mean more interest
Key Advantages
Predictable payments and lower interest rate
Flexible fund access for 5 year and lower monthly payments
Think a Second Mortgage is the better fit for you?
How do I calculate how much equity I have available?
Your available equity is your home’s current value minus what you still owe on your mortgage and any additional loans or lines of credit secured by the home.
What is the maximum loan-to-value (LTV)?
SunWest lends up to 80% of your home’s appraised value.
Are there limits to how much I can borrow with a HELOC?
You can borrow as little as $10,000 and up to $250,000.
How much can my rate change?
Your HELOC rate can increase by up to 1% every 6 months, with a maximum increase of 2% per year.
What’s the difference between a second mortgage and a HELOC?
Both use your home’s equity, but they work differently.
A second mortgage gives you a lump sum with fixed monthly payments over a set term.
A HELOC (home equity line of credit) works more like a credit card. You’re approved up to a limit and can draw from it over time. With a SunWest HELOC, you can use the line for up to 5 years, making payments based on your balance. After that, it converts to a fixed repayment period of up to 10 years. HELOCs also have a variable rate that can increase up to 1% every 6 months.
Should I get a second mortgage or a HELOC?
It depends on how you plan to use the funds.
A second mortgage is best if you need a specific amount upfront and prefer fixed payments and a fixed rate.
A HELOC is better if you want flexibility by borrowing as needed over time. This can be helpful for ongoing expenses, like home projects completed in stages.
*APR = Annual Percentage Rate. On approved credit. Certain terms, restrictions and conditions apply. Refinanced loan interest rate cannot be lower than 4.99% APR when refinancing up to 2.00% APR below your existing rate. The first payment may be deferred for up to 90 days. Your loan will accrue interest during that time. Proof of current loan rate may be required prior to closing in order to receive the refinanced rate. Offer is for vehicle refinance applications processed before July 6, 2026. This offer does not apply to vehicles currently financed through SunWest Federal Credit Union. Rates are subject to change without notice. $50 donation per funded loan will be made to Valley of the Sun United Way. SunWest reserves the right to modify or discontinue a portion or all of this promotion at any time.
See a representative for complete details, qualifications, and disclosures.
The Fine Print
*LTV = Loan to Value
