Before borrowing against your home’s equity, it helps to understand how the process works: what you can borrow, how the rates work, and what repayment might look like. Below are the most common questions we hear about the details of home equity financing.
HELOCs usually have two phases:
A draw period: Our draw period extends up to 10 years, where you can borrow up to your limit as needed, only paying interest on the amount you've used.
A repayment period: Once the draw period expires, any remaining balance you owe is paid back over 10 years.
Our home equity options can be approved for up to a maximum of 90% Loan-to-Value(LTV). What this means is the total amount of your mortgage plus the amount you'd be financing with the home equity must be worth 90% or less of the home's appraised value.
*Please note: The above example is for informational purposes only and is not a guarantee of credit. Home equity loans are subject to credit approval.
Home Equity Loans have fixed interest rates, meaning your rate and monthly payment stay the same over the life of the loan.
HELOCs feature variable interest rates, which can fluctuate with market conditions. Some may offer an initial fixed-rate period through specials promotions.
Rates are often lower than unsecured loans or credit cards, since your home is used as collateral.