What is a HELOC?

A HELOC is a form of revolving credit where your home serves as collateral. They’re primarily used for major expenses such as home improvements, education, medical bills, etc.

Reasons to Apply for a HELOC

Gain access to your home’s equity
for major expenses

Keep your mortgage rate by not refinancing

Get a lower interest rate than credit cards or unsecured loans

Loan Details

Loan Term15 years
5-year Draw Term followed by 10-year Repayment Term
IndexU.S. Prime Rate aka WSJ (Wall Street Journal) Prime Rate
Adjustment PeriodsDaily
Rate/MarginWSJ Prime + 1% – LTV 80% or Less
WSJ Prime + 2% – LTV 81% to 89%
Floor4.5%
Ceiling18%
Maximum Cap for Interest Rate AdjustmentNone
Minimum Initial AdvanceNone
Minimum Draw$100
Payment Options$100 or months’ accrued interest, whichever is greater
Closing CostsLoan Origination Fee: $500.00
Flood Determination Fee: $14.00
Appraisal Fee: $550.00-$700.00
Title Fees: Varies by loan amount
Mortgage Recording Fees: $174.00-$250.00
Return Item Fee: $27.00
Overdraft Item Fee: $27.00
Stop Payment Fee: $27.00
Prepayment PenaltyNone

Tips when comparing HELOC options

  • A HELOC is usually a variable interest rate loan, and it’s important to know which index is used to determine the interest rate, how often the value of the index changes, and how high it has risen in the past.
  • Understand the potential fees associated with a HELOC such as: application fees, appraisal fees, closing costs, and other maintenance and/or transaction fees.
  • Make a plan for how you will pay back the money you borrow.
  • Ask questions, that’s what we’re here for!

Learn more by reviewing

Wondering if a HELOC is right for you?

Contact us today, and we’ll guide you through the entire process.