Using the equity you have in your home as collateral, a Home Equity Line of Credit, also known as a HELOC1, offers you the flexibility to draw on a variable line of credit line whenever you need it.2 It functions much like a credit card with your line of credit replenishing when you pay off your outstanding balance. Unlike a loan, you won't need to pay interest on untapped funds. Therefore, you decide both how much and when you need to draw from this source of funds while taking advantage of HELOC interest rates that are typically lower than credit card rates.3
Interested in learning more? Book an appointment at one of our offices serving the Dallas, Las Vegas, or Auburn Hills areas. If you can't visit us in-person, do not worry. InTouch Credit Union proudly provides HELOC to members in all 50 states.
You can use the funds for debt consolidation, education, purchase of an automobile, home remodeling, vacation, or almost anything you need. Some projects require more flexibility than others. A HELOC from ITCU is a handy resource to have. Your specified line of credit stays open while you make important decisions.
Let the equity you have in your home work for you. Build your next projects on the success you have already accumulated.
For more information, contact us.
1 All HELOC annual percentage rates, regardless of state residence are variable, based on the Wall Street Journal Prime Rate, “the Index”, published in the Money Rates section, plus a stated margin. Check rates for current Index. The APR may change on the first day of each calendar quarter, January, April, July, and October. Changes in APR can only occur if “the Index” has changed since the last rate change. The minimum is 4.00% and the maximum is 18.00%. APR is Annual Percentage Rate.
2 Contact a Credit Union representative for information regarding fees.
3 Terms and Conditions for all HELOCs are as follows: 1. The minimum line amount is $7500. 2. The draw period is five (5) years in length. The draw period cannot be extended, but a member may apply for a new HELOC and pay off their existing HELOC during the initial period to, in essence, extend the draw period. 3. The draw period is an interest only payment period. Reduction of principal is not required. 4. The repayment period may be either 5, 10, 15 years in length and the minimum payment amount is $60.00. 5. A single property can be secured by either a HELOC or a home equity loan, not both. Terms and conditions that are different between Texas and all other states HELOC types are: Texas HELOC 1. May borrow up to 80% of the value of home minus existing mortgages. 2. Each draw (advance) must be at least $4000, the minimum per Texas statute. 3. Advances may be completed through the loan processors by phone, in person or by written request. All Other States 1. May borrow up to 90% of the value of their home, minus existing mortgages. 2. No minimum draw (advance) required. 3. Advances may be completed through Online Banking, MONEYLINE, or through the loan processors by phone, in person, or by written request.
4 Consult your tax adviser regarding deductibility of interest.
