HELLO, HELOC



If you’re looking for a simple way to access your home equity, a HELOC, or home equity line of credit, might be the perfect answer.

 

Borrow what you need, when you need it


A HELOC is a revolving credit line that allows you to borrow against the equity you’ve accrued in your home. Much like a credit card, you can pull funds from your HELOC as you need them, which offers you greater flexibility over how much you borrow.


HELOCs consist of two phases known as the draw period and the repayment period. During the draw period, you can pull funds from your line of credit and make interest-only payments on what you’ve borrowed. When the repayment period kicks in, you’ll no longer be able to draw funds, and your payments will include both principal and interest.


 

Can a HELOC help you meet your goals?


The money from a HELOC can be used however you choose, such as financing home improvements, paying for medical bills or education, or consolidating high-interest debt. Keep in mind that since the loan is secured by your home — meaning you’ll be putting your home up as collateral — it’s important to use your home equity wisely.


 


A HELOC may be a good option if you:


  • Aren’t ready to sell but want to tap into your home equity

  • Have a low rate on your first mortgage and want to avoid refinancing (this makes sense if today’s rates are higher than your current rate)

  • Want to access funds over several years, instead of cashing out a big lump sum



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