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.
home equity line of credit
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.
features you can appreciate
DIRECT DEPOSIT
overdraft protection
mobile banking
zelle + mobile wallet
how does a heloc work?
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.
1
the starting point
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.
2
draw period
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.
3
draw period ends
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.
4
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.
throw yourself a line
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.
buy now, pay later
Withdraw funds for up to 5 years + pay the balance back over a 10-year repayment term once your draw period ends.
low variable rates
Rates starting at 7.50% thatcan increase or decrease according to the market.
accelerate your payoff
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.
low monthly payment
During your draw period, your monthly payment is only 1.5% of your balance to give you flexibility in your monthly budget.
easily access funds
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.
make dreams happen
Use your home equity for anything you can dream up. Consolidate credit cards? Nice! A llama farm? Different, but we love that for you!
check out rates + estimate your home equity line of credit payment
home equity line of credit
15-year max term
10-Year repayment period
APR* as low as 5.62%
draw period payment of $5.21 per $1,000
repayment period payment of $11.23 per $1,000
estimate your home equity line of credit payment
apply for a heloc
arizona style
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.
try it on, see how it fits
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.
you man be asking...
second mortgage
HOME EQUITY LIne OF CREDIT
HOW DO I ACCESS MY EQUITY?
funds dispersed as a lump sum
best for mid-term savings
HOW DO RATES DIFFER?
fixed rate
6 months
12 months
24 months
12 months
24 months
HOW DO PAYMENTS DIFFER?
fixed monthly payment
MINIMUM MONTHLY PAYMENT IS A PERCENTAGE OF TOTAL BALANCE DURING WITHDRAWAL PERIOD, THEN FIXED DURING REPAYMENT PERIOD
HOW MUCH CAN I BORROW?
UP TO 80% LTV
MAX OF $150,000
MAX OF $150,000
UP TO 80% LTV
MAX OF $100,000
MAX OF $100,000
WHAT ARE THE BEST USES FOR
EACH HOME EQUITY LOAN?
EACH HOME EQUITY LOAN?
BEST FOR PROJECTS AND PURCHASES WHERE YOU KNOW HOW MUCH YOU’LL BE PAYING AND WANT TO PAY IT BACK WITHIN A SPECIFIC TIMEFRAME
BEST FOR MULTIPLE PROJECTS OR PURCHASES THAT WILL BE BROKEN UP OVER TIME OR TO HAVE EMERGENCY FUNDS AVAILABLE WITH A LOWER MONTHLY PAYMENT
WHAT ARE THE DOWNSIDES OF
EACH HOME EQUITY LOAN?
EACH HOME EQUITY LOAN?
IF YOU NEED MORE THAN THE ORIGINAL AMOUNT YOU APPLIED FOR, YOU’LL NEED TO APPLY FOR A NEW LOAN
THE VARIABLE RATE + ONLY MAKING THE MINIMUM MONTHLY PAYMENT COULD COST YOU MORE IN INTEREST
WHAT ARE THE BEST FEATURES OF
EACH HOME EQUITY LOAN?
EACH HOME EQUITY LOAN?
- YOU KNOW EXACTLY HOW MUCH YOU’LL PAY WHEN YOU TAKE OUT THE LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
- FLEXIBILITY OF HAVING FUNDS AVAILABLE FOR 5 YEARS
- LOWER MONTHLY PAYMENTS
- LOWER MONTHLY PAYMENTS
*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.
second mortgage
HOW DO I ACCESS MY EQUITY?
funds dispersed as a lump sum
HOW DO RATES DIFFER?
fixed rate
HOW DO PAYMENTS DIFFER?
FIXED MONTHLY PAYMENT
HOW MUCH CAN I BORROW?
up to 80% LTV
max of $150,000
max of $150,000
WHAT ARE THE BEST USES FOR EACH HOME EQUITY LOAN?
BEST FOR PROJECTS AND PURCHASES WHERE YOU KNOW HOW MUCH YOU’LL BE PAYING AND WANT TO PAY IT BACK WITHIN A SPECIFIC TIMEFRAME
WHAT ARE THE DOWNSIDES OF EACH HOME EQUITY LOAN?
IF YOU NEED MORE THAN THE ORIGINAL AMOUNT YOU APPLIED FOR, YOU’LL NEED TO APPLY FOR A NEW LOAN
WHAT ARE THE BEST FEATURES OF EACH HOME EQUITY LOAN?
- YOU KNOW EXACTLY HOW MUCH YOU’LL PAY WHEN YOU TAKE OUT THE LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
- LOWEST INTEREST RATE FOR A HOME EQUITY LOAN
HOME EQUITY LIne OF CREDIT
HOW DO I ACCESS MY EQUITY?
WITHDRAW FUNDS AS NEEDED
HOW DO RATES DIFFER?
VARIABLE RATE
HOW DO PAYMENTS DIFFER?
MINIMUM MONTHLY PAYMENT IS A PERCENTAGE OF TOTAL BALANCE DURING WITHDRAWAL PERIOD, THEN FIXED DURING REPAYMENT PERIOD
HOW MUCH CAN I BORROW?
up to 80% LTV
max of $150,000
max of $150,000
WHAT ARE THE BEST USES FOR EACH HOME EQUITY LOAN?
BEST FOR MULTIPLE PROJECTS OR PURCHASES THAT WILL BE BROKEN UP OVER TIME OR TO HAVE EMERGENCY FUNDS AVAILABLE WITH A LOWER MONTHLY PAYMENT
WHAT ARE THE DOWNSIDES OF EACH HOME EQUITY LOAN?
THE VARIABLE RATE + ONLY MAKING THE MINIMUM MONTHLY PAYMENT COULD COST YOU MORE IN INTEREST
WHAT ARE THE BEST FEATURES OF EACH HOME EQUITY LOAN?
- FLEXIBILITY OF HAVING FUNDS AVAILABLE FOR 5 YEARS
- LOWER MONTHLY PAYMENTS
- LOWER MONTHLY PAYMENTS
how do i calculate how much equity i have available?
what is the max loan-to-value (ltv) i can go up to?
SunWest lends up to 80% of your total appraised value.
are there limits to the dollar amount i can borrow on a heloc?
Borrow as little as $5,000 and as much as $100,000.
what’s the difference between a second mortgage and a first mortgage?
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.
what’s the difference between a second mortgage
home equity loan and a heloc?
home equity loan and a heloc?
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.
how much can my rate change?
Your HELOC rate can only increase a max of 1% every 6 months, 2% annually.
what happens to my rate after the 5-year draw period ends?
Once your draw period ends, the available limit is removed, and your loan is converted to a 10-year repayment period.
should I get a second mortgage or a heloc?
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.
