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Home Equity Lines of Credit

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is a revolving line of credit in which you can borrow up to 80% of the value of your home, less what you have left to pay on your mortgage. With a low variable interest rate, a 5-year draw period, and a repayment period of up to 10 years - a Best Reward Credit Union HELOC is a great value!

And best of all, you can use as much as you need, only when you need it without borrowing a lump sum. Simply make payments on the amount you use, and as you pay down your loan, your available credit increases. The interest you pay may qualify as an income tax deduction; check with your tax advisor.

Use the equity in your home to consolidate debt, fund home improvements, buy a new car, pay college tuition bills, enjoy a dream vacation, and more! As a homeowner, it's the most affordable way to get the things you want.

PLEASE NOTE: We are temporarily suspending new applications at this time. Thank you for your understanding.

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HELOC Rates

At Best Reward Credit Union, we are committed to providing you with an affordable Home Equity Line of Credit. As a member, you can take advantage of our competitive interest rates for your HELOC. You'll find that our rates are often much less than you'd get with a personal loan, credit card, or other forms of financing. We believe you deserve a low interest rate, and we strive to provide you with just that.

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HELOC Resources

Best Reward Credit Union wants you to make an educated choice about your Home Equity Line of Credit. Use the tools and resources below to support you in conducting the research you need to make the best decision for you.

 


HELOC Frequently Asked Questions

What is a HELOC used for?
A Home Equity Line of Credit allows you to borrow against the equity in your home. How you choose to use the money is up to you. Popular reasons to take out a HELOC include making improvements to your home, consolidating high-interest debt, or funding emergency expenses. Either way, you want to be sure that your decision makes sense for your bigger financial picture.

How does a HELOC affect your credit score?
A Home Equity Line of Credit will impact your credit score, similar to a credit card. You want to be mindful of your utilization rate, which is the percentage of your credit limit currently being used. Having too much debt can negatively impact your credit score.

How do payments on a HELOC work?
Payments on a Home Equity Line of Credit are similar to the payments you'd make on a credit card. The amount will depend on how much you borrow at any given time. The more you borrow, the higher your payments will be, and vice versa. HELOC payments are unlike a Home Equity Loan when you borrow a lump sum and make the same payment each month.

How much can you borrow on a HELOC?
You can borrow up to 80% of the value of your home.

Here's an example. If the value of your home is $300,000 and the mortgage balance is $100,000, you have $200,000 in equity.
$300,000 x 80% = $240,000
$240,000 - $100,000 = $140,000
You can establish a HELOC with a limit of up to $140,000.

Are You Ready For A HELOC?
If you're considering moving forward with a Home Equity Line of Credit, let Best Reward Credit Union support you in showing you how this could work for your situation. Our HELOC specialists can provide you with a no-obligation quote and answer any questions you have about the process. Give us a call or start the process online, and we'll be in touch. We're ready to support you when you decide to take the next step.

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APR and payment vary depending on loan amount, term, applicable fees, credit score, and combined loan-to-value (LTV). All loans are subject to credit application and approval, receipt of property appraisal demonstrating acceptable real estate value, and acceptable title search result.  Borrower must obtain and pay separately for Homeowners Insurance on real property securing the loan and Flood Insurance for property located in a Special Flood Hazard area.  Borrower is separately responsible for Real Estate Taxes.  Other conditions and restrictions may apply.  Consult your tax advisor about the deductibility of interest.  Programs and conditions are subject to change at any time.