What is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a line of credit that uses your home as collateral.
With a HELOC, you can draw from an approved credit amount at any time within the draw period, much like how a credit card works.
With typically lower fees and rates than fixed-rate loans, HELOCs are a great option for consolidating debt, buying a car, renovating your home, or other major expenses.
If approved for a home equity line of credit, your draw period can last up to 20 years with a competitive adjustable rate. Your monthly payment will be based on this rate and your outstanding balance amount. There’s also the option to make interest-only payments during the draw period. Draws from your line of credit can be easily accessed via a VISA® Platinum Credit Card (not available in Texas), convenience checks, or by visiting a branch in your area.
There are also potential tax-saving advantages with HELOCs as the interest may be tax deductible. Because every financial situation is different, make sure you speak to your tax advisor about the deductibility of interest. Access to substantial funds, ease of use, low interest rates, and tax advantages make HELOCs a great way to bring your projects, needs, and dreams to life.
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