A home equity line of credit (HELOC) is a line of credit secured by the available equity of your home (the value of your home less the amount you owe on it). Unlike a second mortgage that provides you with a one-time lump sum payment, a HELOC works more like a credit card, giving you the flexibility to use the available credit in the account any time within its draw period.
A HELOC can have a variable interest rate that fluctuates over the life of the line. Payments will vary depending on the interest rate and how much credit you have used. If you require additional cash over time, a HELOC may be a good option to consider.
- Line of credit amount depends on home equity borrower's creditworthiness and occupancy.
- Promotion effective for requests submitted 12/1/17 through 1/31/18. The promotional rates apply to up to five Fixed Rate Equity Loan Options (FRELO) during the draw period of your HELOC; it is available to existing and to new owner-occupant EEX accounts with an advance on the line of at least the minimum loan amount and automatic payment from an American Savings Bank checking account. Based on a 15-year fixed rate loan of $30,000 at 4.00% APR, there will be 180 monthly principal and interest payments of $221.91. Current non-promotional rates as of 12/1/17 is 7.25% for a 15-year fixed rate loan. Other FRELO terms and rates are available. FRELO may be added upon your request.