Home Equity Line of Credit and Home Equity Loan Options

Home sweet home equity

Home is where the heart is, and sometimes it’s where your money is too. An Elevations Home Equity Loan or Line of Credit (HELOC) allows you to turn your home equity (translation: the value of your home above what you owe) into quick, convenient funds for an upcoming expense. You build your home equity when the value of your home increases, depending on market conditions, and/or as you pay down your mortgage loan balance(s).

You might be saying to yourself, “That all sounds awesome, but what could I use my home equity to finance?” Think along the lines of renovating your house into your dream home, financing an education for yourself or a loved one, consolidating high-interest credit card or personal loan debt, or buying a car. Check out our blog: What a Home Equity Loan Can Do for You.

    Home Equity Loan or Home Equity Line of Credit (HELOC): which is right for you?

    Home Equity

    Home Equity Loan Home Equity Line of Credit (HELOC)
    Loan type Get a one-time lump sum and make monthly principal and interest payments, aka an amortized loan. Revolving line of credit. Access money as you need it, when you need it.
    Best for Large, one-time expenses like renovating your house or buying a car. Expenses that are spread out over time like college tuition payments, minor home improvements and debt consolidation.
    Fund access Use funds from the lump sum that was either deposited into your Elevations account or made payable to you by check. When you need funds, use your Home Equity Visa Card, transfer money to your checking account or write a check.
    Rates Fixed rate. Variable interest rate with the option to fix your rate for a portion of your loan balance.
    Terms and payments Choose a 20/20 or 30/20:

    1. 20/20: Make monthly principal and interest payments from 5 - 20 years.
    2. 30/20: Your payments are calculated over 360 months (30 years). Make these monthly principal and interest payments over the course of 240 months (20 years). After 20 years, you pay the final outstanding balance in full.
    A HELOC includes two 10-year periods:

    1. Draw Period: During the first 10 years, make minimum interest only payments as you use the line of credit.
    2. Repayment Period: During the last 10 years, repay the outstanding balance with monthly principal and interest payments. Note that you won’t be able to draw funds from the HELOC during this time.
    Application process No application fee. Apply online, over the phone or in a branch. Credit, income and collateral qualifications apply; note that your credit will be pulled. After reviewing your application, an Elevations loan officer will be in touch.

    Ready to put your home equity to work?

    Apply Now

    * Offers subject to credit approval. All Credit Union loan programs, rates, promotions, terms and conditions subject to change anytime without notice.

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