A Home Equity Line of Credit, or HELOC, is a revolving line of credit that uses the equity in your home as collateral. Instead of receiving one lump sum, you can borrow what you need up to your approved credit limit, repay it, and borrow again while the line remains open and in good standing.
How a HELOC works
At People Driven Credit Union, a HELOC includes a 10-year draw period and a 20-year repayment period. During the draw period, you can access funds as needed and make interest-only payments on the amount you have borrowed. After the draw period ends, you can no longer draw additional funds, and you begin repaying principal and interest over the repayment period.
Why members use a HELOC
A HELOC can be helpful when you want flexible access to funds over time instead of all at once. Members often use a HELOC for home improvements, debt consolidation, education expenses, emergency family expenses, or other major financial needs.
What to keep in mind
Because your home secures the line of credit, it is important to borrow carefully and understand that HELOC rates are variable. If you want help deciding whether a HELOC is the right fit, call 248-263-4100 or connect with a Home Equity Specialist.
