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Home Equity Line of Credit:
There are occasions when credit is a useful strategy to reach your personal and financial goals. One way some people access credit is by borrowing money on the equity they have in their home. Your home equity may qualify you for a sizable amount of credit, available for use when and how you please, and at an interest rate that is quite low.

If you are currently in the market for credit, consider our Home Equity Line of Credit (HELOC) option. A Home Equity Line of Credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be your largest asset, many homeowners use their credit lines only for major items such as education, home improvements, debt consolidation, or medical bills and not for day-to-day expenses. Under the tax law, depending on your situation, you may be allowed to deduct the interest because the debt is secured by your home. (Please consult a tax adviser to determine whether you qualify for interest deduction.)

With a Home Equity Line of Credit, you will be approved for a specific amount of credit, which may be the maximum amount you may borrow at any one time under the plan. The draw period (or fixed length of time) during which you can borrow money on our HELOC is seven years. The full loan term is ten years. As you pay off the principal, your credit revolves and you can use it again. For example, let's say you have a $10,000 line of credit. You borrow $5,000, but then pay back $3,000 toward the principal. You now have $8,000 in available credit.

As you pay back your HELOC, your payment amount will change based on the variable interest rate and your outstanding balance. Interest-only is the required payment and you may choose to lower your monthly payments by making interest-only payments, but you always have the option of making principal payments. If you choose to make interest- only payments, be sure you are comfortable paying off the loan in full at the end of the loan term or be prepared to refinance the loan for another term.

We are now offering Home Equity Lines of Credit (HELOC) for up to 80% of the available equity in your home. For example, if your home is currently valued at $500,000, the numbers below outline how we arrive at your potential credit limit.

Please use our Interest Rates link to find out our current HELOC rate. We also offer a half-percentage point (.5%) rate reduction for a HELOC that is approved for solar product installations. Because our HELOC rates are variable, there is a maximum increase of 5% and a lifetime floor of 3% from your initial rate.

We encourage you to call our loan officer, Lisa Carrisales, if you have any questions about our Home Equity Line of Credit. You can reach her at 460-2304.