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Home Equity Line of Credit

Funds Available When You Need Them

Have an ongoing expense or regular payments you need to make? Your home’s equity may let you Live Smarter by borrowing against its value for paying other bills.

What is Home Equity?

If you own a home and have paid off a large enough portion of the principal, you’ve built up equity. Equity is simply the difference between what your home is worth and the amount you still owe on it. For example, if your home is worth $200,000 and you still owe $150,000, you have about $50,000 in equity. 


What is a Home Equity Line of Credit?

A Home Equity Line of Credit (HELOC) allows you to open a line of credit to borrow against, based on how much equity you have in your home.

Couple meets with credit union representative, shaking hands, happy to receive home equity line of credit


What’s the Difference Between a Home Equity Line of Credit (HELOC) and a Home Equity Loan?

While a HELOC is a revolving line of credit with a variable interest rate from which you can draw, a home equity loan is a fixed loan with a set payment schedule that provides you a larger sum up front for making a one-time purchase. Think a Home Equity Loan might be a better fit?

Home Equity Loan: Learn More


What are the benefits of a Home Equity Line of Credit, and which home equity option is better for your needs?

The choice really depends on what you need it for. After reading about both home equity options, if you’re not sure what will work better for you, we can help you understand them better. We'll talk about the application process, see if you qualify, and discuss which could work for you and your needs.

Think of a HELOC loan as more like a credit card. Once it’s approved for a given amount, you can decide when you want to use the money, and you can withdraw it from that account. Once you’ve taken some out, you’ll have payments due. A HELOC is more practical for purchases that are made a smaller amount at a time, like one-at-a-time home projects. A HELOC uses your home as collateral, and the rates are generally lower than credit cards. Plus it could have tax benefits, depending on how it’s used.

Full disclosures listed below.

HELOC Features:

  • Secured Loan

  • 1st or 2nd Lien

  • Loan to Value is Determined by Credit Score

  • Variable Rate

  • No Closing Costs

  • Mortgage Tax Paid by First Source

  • Funds As Needed Up to 15 Years

  • Variable Draw Period Up to 15-Years with 15-Years Additional to Repay

  • Interest Only During Draw Period, Principal Plus Interest During Repayment Period

  • Auto Payment Available

  • If Paid Before 3 Years, Member Repays Closing Costs

  • Mortgage Refinance

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Make an appointment to see what's possible and how you qualify.

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Which home equity option is right for you?

Check out our helpful loan comparison calculator.


Home Equity Comparison Calculator

Home Equity Line of Credit

Rate APR
Introductory Rate as low as 1.49% for six months*
Variable Rate as low as Prime Rate

*After 6 months, the APR (Annual Percentage Rate) may vary monthly based on the Prime Rate published in the Wall Street Journal plus a margin. Prime rate as of 06/14/2018 is 5.00%. Minimum Line of Credit loan is $7,500. Rates can increase or decrease, but not to exceed 15.99% APR.

Loan rates and terms are determined by overall credit history and are subject to change without notice. Applications are subject to credit approval. Rates apply to new loans and are based on a loan to value (LTV) up to 80%.

If closed within 3 years of the opening date, reimbursement for certain fees paid to third parties to open the loan is required. Fees vary depending on loan amount and can be as low as $852.50 for a $50,000 loan or $1,227.50 for a $100,000 loan.

Consult a tax advisor for deductibility for interest. Homeowners insurance is required.

*Federally insured by NCUA. Membership and credit requirements apply. Rates and terms determined by overall credit history and subject to change. By submitting your email, you give First Source permission to send you informative and promotional emails, including information on upcoming events, products, and services. You may change your designation at any time in the future. Thank you for letting us help you Live Smarter.