HELOC
A HELOC is a revolving line of credit secured by a home's equity, allowing a homeowner to borrow against your home's value.
Revolving Credit
Borrow, repay, and borrow again up to your approved credit limit — giving you ongoing access to funds.
Borrow Against Your Equity
Tap into the cash value you’ve built in your home without refinancing your entire mortgage.
Flexible Access
Withdraw only what you need. Use funds as a lump sum or in smaller amounts over time.
Unlock Your Home's Potential
How a HELOC Works
What determines my credit limit?
Your HELOC limit is based on a percentage of your home's appraised value, minus any outstanding mortgage balance. This means you can access funds based on the equity you've built.
Understanding your credit limit helps you plan your borrowing effectively.
What is the draw period?
The draw period typically lasts between 5 to 10 years. During this time, you can borrow, repay, and borrow again as needed. Most lenders offer interest-only payments during this phase, making it easier to manage your cash flow.
This flexibility allows you to access funds for home improvements, education, or other expenses.
How does the interest rate work?
HELOCs usually come with a variable interest rate that is tied to the prime rate. This means your interest rate may fluctuate over time, impacting your monthly payments.
It's important to stay informed about market trends to anticipate changes in your payments.
What happens during the repayment period?
After the draw period ends, your HELOC transitions into the repayment period, which typically lasts between 10 to 20 years. During this time, you'll start paying both principal and interest, which can significantly increase your monthly payments.
Planning ahead for this transition is crucial to ensure you can manage your budget effectively.
How can The Huntress Home Loan Pro help?
We guide you through the entire HELOC process, ensuring you understand each step and find the best options tailored to your needs.
With our expertise and personalized service, you can confidently navigate your home equity journey.
What are the benefits of a HELOC?
A HELOC offers flexibility, lower interest rates compared to personal loans, and the ability to borrow only what you need when you need it.
This makes it an excellent choice for homeowners looking to finance major expenses or projects.
Eligibility Requirements
- Sufficient home equity (typically 15–20% or more)
- Good credit (usually 620–680 minimum, depending on lender)
- Stable and verifiable income
- Responsible debt-to-income ratio
- Reliable payment history
Common Uses for a HELOC
- Home renovations & repairs
- Debt consolidation
- Medical expenses
- Education costs
- Emergency fund access
- Large purchases (vehicles, appliances, etc.)
HELOC VS. Home Equity Loan
| HELOC | LUMP SUM |
|---|---|
| ☑ Revolving line of Credit | ☑ Lump Sum |
| ☑ Variable Rate | ☑ Fixed Rate |
| ☑ Borrow As Needed | ☑ Set monthly payment |
| ☑ Flexible Payments | ☑ Best for one-time expenses |
