HELOC

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• What is a HELOC, and how does it work?

  • ​A HELOC is a revolving line of credit that lets you borrow against your home’s equity. During the draw period, you can withdraw funds as needed, paying only interest. In the repayment period, you repay the principal and interest.

• What can I use a HELOC for?​

  • ​You can use it for home improvements, debt consolidation, education expenses, emergencies, or any other personal needs.

• How is the interest rate on a HELOC determined?​

  • ​HELOCs typically have variable interest rates based on the prime rate, with some fixed-rate options.

• How quickly can I access funds from a HELOC & how much?

  • You can access 100% of your credit line at closing, but the min required draw is 75% ​

• What are the Draw Terms & Structure?​

  • 30-Year Loan Term includes:

    • 5-year Interest Only Draw Period:

      • For the first 5 years of the loan, you can borrow funds up to your credit limit and are only required to make payments on the interest accrued on the amount you've borrowed.

    • 25-year Repayment Period (fully amortizing) 
      After the draw period ends, the HELOC enters the repayment period and you can no longer withdraw funds. You must start repaying both the principal and interest on the loan. ​

• Can I repay funds ahead of schedule?​

  • Yes, there are no prepayment penalties, allowing you to pay off the balance early without extra costs.

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