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.
Take on the world one project at a time with a SunWest Home Equity Line of Credit (HELOC) that gives you the flexibility to use what you need, when you need it. Put your equity to good use…like updating your outlets to avoid electric shock.
A SunWest 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, we'll add up all debts that use your home as collateral, subtract this from your homes value to calculate your available equity, and determine your HELOC limit.
Withdraw up to your 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 limit is removed, and you no longer have access to withdraw funds, and you enter your repayment period.
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 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 for crown molding, a dental crown, a diamond crown - whatever helps you feel like the king of the castle.
Withdraw funds for up to 5 years + pay the balance back over a 10-year repayment term once your draw period ends.
Rates starting at 7.50% thatcan increase or decrease according to the market.
Prepayment penalties don’t live here. When you pay your loan off early, you’ll save on interest + we’ll high five you for being a financial savant.
During your draw period, your monthly payment is only 1.5% of your balance to give you flexibility in your monthly budget.
Through online banking, you can view your balances + move money right into your checking. Need a large cash withdrawal? Give us a call + we’ll get it ready for a quick, safe pickup.
Use your home equity for anything you can dream up. Consolidate credit cards? Nice! A llama farm? Different, but we love that for you!
Give us a call and speak to one of our home 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 second mortgage is great for those who have a specific budget in mind, but what if you need more flexibility? See how a second mortgage and home equity line of credit match and where they differ.
*APR = Annual Percentage Rate. See a representative for details.**Please keep in mind we always pull credit for any new member as part of our identity verification process.
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.
A first mortgage is the primary loan that goes toward paying a home. This could be the loan you used for the initial purchase of the home or a refinance.
For example, you purchased a home for $300,000 by getting a loan from Bank A. Bank A places a lien on your home that’s removed once you pay off the loan. This is your first mortgage. 5 years later, you decide to refinance for a lower rate. The refinance would also be considered a first mortgage because it is still the primary loan that pays for the home.
A second mortgage, or home equity loan, is a loan you take out using the equity you have available from your home’s value.
For example, you owe $100,000 on your home, and it’s worth $300,000. You have $200,000 in home equity. You need a new stove, money for a wedding, and want to pay off some high-interest credit cards, so you take out a second mortgage for $100,000 with Credit Union A. Bank A has the primary lien and Credit Union A has a secondary lien on your home.
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 rate can only increase a max of 1% every 6 months, 2% annually.
Once your draw period ends, the available limit is removed, and your loan is converted to a 10-year repayment period.
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.