Home Equity Lines of Credit (HELOCs)
Access the cash you need using your home’s equity
With a new HELOC, you could enjoy variable APRs ranging from 3.99% to 10.35%. Rates include discount for automatic payment from a BBVA deposit account. See below for terms and conditions.
Like a credit card, a HELOC gives you a line of credit, except with a limited advance period.
But unlike a credit card, a HELOC’s interest rate may be significantly lower because the loan is secured by your home, which is used as collateral.
A HELOC may be suitable for:
- Making major purchases (appliances, cars, RVs, boats, etc.)
- Improving your home
- Refinancing your existing mortgage
- Consolidating high-interest debt
- Paying unexpected expenses over time
Take advantage of our promotional rates, currently as low as 2.99% variable APR.1
For a limited time, you could lower the rate for the life of the line if you take an initial advance of at least $35,000 within 15 calendar days after closing and set up automatic payments. When you apply between January 2 and July 31, 2020 and set up automatic payments, you could enjoy:
1.00% interest rate discount when you:
- Take initial advances totaling $50,000 and above within 15 calendar days after closing, and
- Maintain that outstanding balance for at least the first three billing cycles.
0.50% interest rate discount when you:
- Take initial advances totaling between $35,000 and $49,999 within 15 calendar days after closing, and
- Maintain those outstanding balances for at least the first three billing cycles.
With a HELOC, you’ll enjoy these features:
Access your credit line whenever you need funds with four convenient options: a Visa® Platinum Credit Card, convenience checks, by phone or in branch. (Visa® Platinum Credit Card is not available to make draws in Texas.)
Enjoy a competitive adjustable rate, with monthly payments that vary based on the rate and your outstanding balance.
Interest-only payment options
Opt to make interest-only payments during the draw period. Interest-only payments may result in a lower monthly payment. However, your monthly payment will likely increase after the draw period ends.
Choose to "lock in" up to three portions of your line of credit at a fixed rate with fixed monthly payments. You can convert your outstanding balance or take a new draw at a fixed rate at any time during your draw period. A minimum draw of $2,500 ($4,000 in TX) is required and a $75 fee is charged for each fixed-rate advance taken (Not applicable in TX). This fee is waived for your first transaction.
Bank-paid closing costs
Speak with a banker to see if you qualify for special bank-paid closing costs. You may qualify if your line of credit is between $10,000 and $500,000 and certain conditions are met.
Potential tax benefits
Potentially lower your tax bill when you deduct interest paid on your year-end taxes. (Please note that tax laws regarding the deductability of interest paid on HELOCs have recently changed. Consult a tax advisor regarding the potential deductability of interest and charges.)
Terms & Eligibility
Important HELOC terms
A $75 annual fee is charged on the first anniversary of the line and every year thereafter (not applicable in Texas).
Fixed-Rate Advance Fee
A $75 fee is charged for each fixed-rate advance taken and is waived for your first transaction (Not applicable in Texas).
Minimum Required Periodic Payment
During the draw period, the minimum monthly payment will be an amount sufficient to pay accrued finance charges at the applicable APR, plus any principal balance in excess of the credit limit, subject to a minimum payment of at least $75. During the repayment period, the minimum monthly periodic payment will be an amount sufficient to repay the outstanding balance in principal and interest payments over the remaining term at the applicable APR.
Term Draw Period
Your draw period may last up to 10 years. Please speak with a banker to determine the draw period for your HELOC.
- 15 years if the balance owed is $20,000 or more
- 10 years if the balance owed is less than $20,000
Maximum Interest Rate Cap
Maximum APR for all HELOCs will not exceed 18%.
Is a home equity loan or HELOC right for you?
Want to make the equity in your home work for you? Compare our home equity loans and HELOCs to determine which option is a good fit for your situation.
|Features||HELOC||Home Equity Loan|
Fixed or Variable Rate
Variable APR, with option to lock in a fixed rate for three portions of the line of credit
Fixed rate, with fixed monthly payments
Disbursal of Funds
Funds available as you need them
Funds disbursed as a lump sum
Bank-Paid Closing Costs
Available for qualifying Lines
Available for qualifying Lines
Interest-Only Payment Option
How to Apply
Frequently asked questions
What is a HELOC?
A home equity line of credit, or HELOC, is a revolving line of credit that uses your home as collateral. A HELOC works much like a credit card—allowing you to draw approved credit at any time during a specified draw period.
Monthly payment amounts are based on the outstanding line balance. If principal is repaid during the draw period payments are made, credit becomes available again.
How does a HELOC work?
A home equity line of credit, or HELOC, is a line of credit you get based on the amount of equity you have in your home, your creditworthiness, and your debt-to-income ratio.
Interest Rate: The interest rate on a HELOC is adjustable, meaning it changes periodically to reflect market conditions.
Terms: A typical term for a HELOC is 20 years with a draw period of 10 years, during which time you can access your credit as you need it up to the limit.
During the draw period, you will only pay interest on the balance (not principal); therefore, your monthly payment will change based on your outstanding balance. During the draw period, you will regain access to your credit up to the limit when you pay down your balance, much like a credit card.
Repayment: The second phase of a HELOC is the repayment period during which you can no longer draw on your line and must start paying back your balance plus interest.
What can I use a HELOC for?
You can use your funds for a variety of purposes, including home improvements, major purchases (appliances, cars, RVs, boats, etc.), refinancing your existing mortgage, debt consolidation2, and miscellaneous expenses.
Is a HELOC secured or unsecured debt?
A home equity line of credit is secured by the equity in the borrower’s home; therefore, it is considered secured debt.
How much equity is required for a HELOC?
Most lenders require borrowers to maintain 10-20 percent of their equity after taking out a home equity loan or line.
For example, if your home is worth $300,000 and you owe $200,000 on your first mortgage, based on 10-20 percent loan-to-value ratio, you could borrow between $40,000 and $70,000. Of course how much you can borrow also depends on your creditworthiness and your debt-to-income ratio.
How does a HELOC affect my credit score?
A home equity line of credit will appear on your credit report as a revolving line of credit. A HELOC is considered a “secured” line of credit, which can make it more favorable to credit agencies than a credit card or unsecured line of credit.
What matters most is how you manage your line of credit. Missing or late payments can have a negative impact on your score, as can maxing out your available credit.
Can I get a HELOC if I have a mortgage?
Yes, you can if you have enough equity in your home to borrow against. If you have not built sufficient equity in your home you likely not be able to qualify for a HELOC.
What’s more, many lenders prefer that you have your mortgage for at least a year or two before you can apply for a home equity loan or line of credit.
If you do have sufficient equity and acceptable credit, you can qualify for a HELOC while also having a mortgage. In fact, home equity loans and lines are often referred to as “second mortgages.”
Can I get a HELOC with an FHA loan?
The FHA (Federal Housing Administration) doesn’t offer home equity lines of credit. However, if you have an FHA loan and build up enough equity in your home, you can apply for a HELOC from another lender.
You may also be interested in:
Home Equity Loans
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BBVA Express Personal Loans
Get a competitive personal loan rate, with potential same-day funding upon approval.
1 Rate Discount: For applications received between January 2 and July 31, 2020 which close on or before October 31, 2020, discounted margins are available in the following amounts if you take minimum draws within 15 days of account opening when that minimum balance is maintained for at least the first three billing cycles: (1) a margin discount equal to 0.50% will apply for initial draws between $35,000 and $49,999; and (2) a margin discount equal to 1.00% will apply for initial draws of at least $50,000. In addition, automatic payment from a BBVA deposit account required to qualify for rate discount. Discounted margins are subject to forfeiture upon borrower becoming 60 or more days past due or upon failing to meet one of the above requirements after closing. This offer may be combined with Bank-paid closing costs. Discount offer is not available for line increases on existing BBVA HELOCs.
Standard Rate(s): Any outstanding balances on your HELOC will accrue interest at the standard rate(s) contained in your credit agreement. “Prime” means the highest per annum Prime Rate of interest published by the Wall Street Journal, which was 3.25% as of 03/17/2020. APR will vary with Prime; will be based on your collateral property location, credit line amount, CLTV ratio and other factors; and can range from Prime plus 0.74% (currently 3.99% variable APR) to Prime plus 7.10% (currently 10.35% variable APR) (includes 1.00% interest rate reduction for automatic payment from a BBVA deposit account). APR will not exceed 18% or go below 2.50% at any time during the term of your account.
HELOC Terms: All HELOC applications are subject to program eligibility, underwriting, and collateral requirements and approval, including credit approval. Collateral property must be in AL, AZ, CA, CO, FL, NM, or TX. Property insurance required, including flood insurance where applicable. Certain property types are not eligible collateral. HELOCs have a 1-year draw period, which we may renew annually up to a maximum of 10 years. During the draw period you will be required to make monthly payments of accrued interest, plus any principal balance in excess of the credit limit, with a minimum payment of $75. CHOOSING TO REPAY ONLY ACCRUED INTEREST DURING THE DRAW PERIOD MAY CAUSE YOUR MONTHLY PAYMENT TO INCREASE, POSSIBLY SUBSTANTIALLY, ONCE YOUR HELOC TRANSITIONS TO THE REPAYMENT PERIOD. Following the draw period, the length of the repayment period will depend on the amount of the then-outstanding balance. If your outstanding balance is less than $20,000, the repayment period will be 10 years. If the outstanding balance is $20,000 or greater, the repayment period will be 15 years. During the repayment period, the minimum monthly payment will be an amount sufficient to repay the outstanding balance over the remaining term at the APR in effect at the start of the repayment period. If rates subsequently increase, your minimum payments may not be sufficient to fully repay the principal that is outstanding on your line. If they are not, you will be required to pay the entire outstanding balance in a single balloon payment at maturity (not applicable in Texas). Texas HELOCs: If rates increase after the start of the repayment period, your monthly payment will increase so that the balance is fully repaid at maturity.
Fixed-Rate Option: You can convert to a fixed rate and fixed payment at any time during the draw period. Minimum payment due on a fixed-rate option advance includes principal and interest in fixed monthly payments. A $75 fee is charged for each fixed rate conversion option that is exercised (not applicable in Texas), waived for the first transaction. Your APR may increase if you exercise this option. A fixed-rate option, in the minimum amount of $2,500.00 ($4,000 in Texas), may be requested only by phone or in person at a BBVA office. You are limited to two fixed-rate option requests in a 365-day period and to a maximum of three fixed-rate options outstanding at any time. The term of each Fixed-Rate Option will be the term you select at the time of that option, with a maximum of 15 years.
Closing Costs: BBVA will pay for all closing costs on new home equity products with amounts ranging from $10,000 to $500,000. Credit requests for less than $10,000 or more than $500,000 shall be subject to actual closing costs incurred and permitted by law. To qualify for Bank-Paid Closing Costs, the borrower must complete a $10,000 draw requirement within 30 days which must remain outstanding for 90 days (not applicable in Texas). Bank-paid closing costs are subject to recoupment from borrower(s) if loan is paid off within 2 years (not applicable in Texas). Closing costs vary by state and typically range from $675 on a $10,000 credit line to $11,114 on a $1,000,000 credit line. Texas closing costs typically range from $935 to $7,339 depending on credit line amount.
Additional information: Annual Fee: $75 on the first anniversary of the line and every year thereafter (not applicable in Texas). Overlimit Fee: $25 per occurrence when you cause your credit line to go over your credit limit (not applicable in Texas). Texas Late Fee: 5% of the minimum payment amount or $15, whichever is less. Non-Texas Late Fee: $25. Early Closure Fee: If you close your line within 2 years from the opening date, any third-party closing costs paid by BBVA will be charged back to your HELOC (not applicable in Texas). Debt Consolidation: The relative benefits you receive from loan consolidation will vary depending on your individual circumstances. If your HELOC has a longer term than the bills you are consolidating, you may not realize savings over the entire term of your HELOC. Texas HELOCs: BBVA cannot use a customer’s home equity funds to pay (in part or in full) BBVA non-homestead debt at account opening. Minimum draw in Texas is $4,000. To use convenience checks to make draws, borrower must submit request for convenience checks. VISA Platinum Card is not available.
2Debt Consolidation: The relative benefits you receive from loan consolidation will vary depending on your individual circumstances. If your Home Equity Loan has a longer term than the bills you are consolidating, you may not realize savings over the entire terms of your Home Equity Loan or Line.
BBVA Checking Accounts: Checking accounts subject to approval, which may include credit approval. $25 minimum opening deposit required.
BBVA and BBVA Compass are trade names of BBVA USA, a member of the BBVA Group. BBVA USA, Member FDIC and an Equal Housing Lender. NMLS #402936 Rev. 6/2020