What you need to know about a HELOC
Need cash to finance a home renovation project, wedding or vacation? Consider applying for a home equity line of credit, or HELOC. HELOCs are a very common type of loan. If you want to learn more about home equity lines of credit, OnPath Federal Credit Union is here to help. Just get in touch with one of our mortgage lending experts for more information.
How HELOC Works
As you make payments on your home over time, you build up something called equity. Equity is the portion of your home that you own. Normally, you can’t access this financial asset until you sell the house. But with a home equity line of credit, you can tap into those funds earlier. To figure out how much equity you have right now, subtract the amount of money you still owe on your mortgage from your property’s total value.
While HELOCs are like a second mortgage, they function more like credit cards. You can draw money out as needed, and then pay it back with interest. HELOCs are a great choice if you need smaller amounts of money over a long period of time. But they’re not exactly similar to credit cards. Whereas credit cards are unsecured, HELOCs are secured by your house. So, it’s important to know there is some risk involved if you miss payments.
After the draw period ends, it’s time for the repayment phase. At this point, you’ll no longer be able to withdraw money and you have to start paying it back, plus the interest accrued. Interest rates for HELOCs are not usually fixed, so they may fluctuate from month to month.
Applying for a HELOC at OnPath FCU
Interested in applying for a home equity line of credit? In order to get approved, we’ll evaluate your financial situation, including your credit history, credit score and your outstanding debts, to check for low risk. We offer an 80% loan-to-value ratio and loans up to $250,000. While most lenders charge application fees and closing fees, OnPath FCU does not. It’s just one more perk that OnPath FCU members enjoy.
Get fast funding with the best HELOC rates from OnPath FCU today. In addition to home equity lines of credit, OnPath FCU also offers other types of loans that may fit your situation better. Talk to one of our expert mortgage loan officers for personalized guidance and support. You can reach the Mortgage Department by calling 504-648-2064 or by visiting our website at https://beonpath.formstack.com/forms/contact_us_copy_copy