A HELOC is a revolving line of credit that uses your home as collateral. It allows you to borrow funds as needed, up to a predetermined credit limit, using the equity you’ve built in your home.
What is a Home Equity Line of Credit (HELOC)?
Here are the key features that make a HELOC different and useful:
- You borrow only what you need during a 10-year draw period
- You pay interest only on the amount you actually use
- You can repay and borrow again as many times as you want
- After the draw period, you enter a 20-year repayment phase
How a HELOC Works
First, we approve you for a credit limit based on your home’s equity. Next, you draw funds as needed by check, transfer, or card. Then, you make monthly payments on the balance you owe. Finally, once the draw period ends, you repay the remaining balance in predictable payments.
Why Members Choose a HELOC
A HELOC gives you flexibility and control. You pay less interest when you borrow less, and you can access funds quickly without reapplying. Many members use it for home improvements, debt consolidation, or unexpected expenses.
Common Questions
What is a Home Equity Line of Credit (HELOC)?
A HELOC is a revolving line of credit that uses your home as collateral. It allows you to borrow funds as needed, up to a predetermined credit limit, using the equity you’ve built in your home.
Get Help from Our Team
Call us at 844-700-7328 during business hours. Our team explains exactly what a Home Equity Line of Credit (HELOC) is and helps you apply. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.
5 Helpful Hints About a HELOC
- First, calculate the equity in your home.
- Next, decide if you need flexible access or a one-time lump sum.
- Also, compare current HELOC rates before you apply.
- Then, set up AutoPay to make payments easier and possibly earn a rate discount.
- Finally, contact us at 248-263-4100 to learn more about what a Home Equity Line of Credit (HELOC) can do for you.
People Driven Credit Union offers a Home Equity Line of Credit (HELOC) that gives you real flexibility and control over your home equity. You borrow when you need it, pay interest only on what you use, and enjoy competitive rates with personal service. Many members have successfully used a HELOC for years and achieved their financial goals. Thank you for banking with us. Our team is always ready to help you understand what a Home Equity Line of Credit (HELOC) is and how it fits your needs.
