What is a HELOC?
A HELOC is a line of credit that reflects the equity held in your home. Lines of credit may have a fixed rate for a period of time or a variable interest rate that will allow it to increase or decrease over time, meaning your payment will likely fluctuate as well.
Much like a credit card, or standard line of credit, you can borrow from your HELOC, pay it back, and then borrow again. Each month you will pay a percentage of the principal you have borrowed along with interest and pay annual fees during the loan term.
Our HELOCs are straight lines of credit that draw for the loan's entire life. When your HELOC matures or comes due, repay the balance or re-apply for another HELOC or home equity loan. All new applications are subject to underwriting and approval.
HELOCs offer a more significant amount of flexibility in comparison to Home Equity Loans. While a loan requires you to take out the total amount, a HELOC can be used as needed.
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