While a HELOC functions like a credit card with a variable limit, a home equity loan provides a lump sum with fixed payments. HELOCs have flexible borrowing and repayment terms, while home equity loans are more structured with fixed interest rates.

Lenders typically allow you to borrow up to 80-90% of your home’s value, minus any outstanding mortgage balance. For example:

• Home value: $400,000
• Mortgage balance: $250,000
• 80% of home value: $320,000
• Available credit: $320,000 – $250,000 = $70,000

• Payment Example: $70,000 @ 8.75% = $512/month approximately

Common uses include:

• Home improvements
• Debt consolidation
• Emergency expenses
• Education costs
• Large purchases

• Flexibility: Borrow as needed.
• Interest savings: Pay interest only on the amount used.
• Potential tax benefits: Interest may be tax-deductible if funds are used for home improvements (consult a tax advisor).

• Variable interest rates: Payments can increase if rates rise.
• Risk of foreclosure: Defaulting on payments could result in losing your home.
• Overspending: Easy access to funds may lead to excessive borrowing.

During the draw period, you may only need to pay interest. Once the repayment period begins, you’ll make principal and interest payments. The repayment terms depend on the lender’s policies.

Costs may include:

• Application fees
• Appraisal fees
• Annual maintenance fees
• Closing costs
• Early termination fees (if applicable)

Yes, depending on your financial situation and lender’s terms. Refinancing might involve converting the HELOC into a fixed-rate loan or extending the draw period.

Lenders typically assess:

• Credit score (usually 620 or higher/lower)
• Debt-to-income ratio (preferably below 45%)
• Home equity amount
• Employment and income stability

You may need:

• Proof of income (pay stubs, tax returns)
• Credit report
• Mortgage Statement
• Proof of homeowner’s insurance

Consider:

• Personal loans
• Cash-out refinancing
• Credit cards (for smaller expenses)

You can apply for loans or membership through the Harvesters website.

Contact a Harvesters’ CU Loan Officer.

While a HELOC functions like a credit card with a variable limit, a home equity loan provides a lump sum with fixed payments. HELOCs have flexible borrowing and repayment terms, while home equity loans are more structured with fixed interest rates.

Lenders typically allow you to borrow up to 80-90% of your home’s value, minus any outstanding mortgage balance. For example:

• Home value: $400,000
• Mortgage balance: $250,000
• 80% of home value: $320,000
• Available credit: $320,000 – $250,000 = $70,000

• Payment Example: $70,000 @ 8.75% = $512/month approximately

Common uses include:

• Home improvements
• Debt consolidation
• Emergency expenses
• Education costs
• Large purchases

• Flexibility: Borrow as needed.
• Interest savings: Pay interest only on the amount used.
• Potential tax benefits: Interest may be tax-deductible if funds are used for home improvements (consult a tax advisor).

• Variable interest rates: Payments can increase if rates rise.
• Risk of foreclosure: Defaulting on payments could result in losing your home.
• Overspending: Easy access to funds may lead to excessive borrowing.

During the draw period, you may only need to pay interest. Once the repayment period begins, you’ll make principal and interest payments. The repayment terms depend on the lender’s policies.

Costs may include:

• Application fees
• Appraisal fees
• Annual maintenance fees
• Closing costs
• Early termination fees (if applicable)

Yes, depending on your financial situation and lender’s terms. Refinancing might involve converting the HELOC into a fixed-rate loan or extending the draw period.

Lenders typically assess:

• Credit score (usually 620 or higher/lower)
• Debt-to-income ratio (preferably below 45%)
• Home equity amount
• Employment and income stability

You may need:

• Proof of income (pay stubs, tax returns)
• Credit report
• Mortgage Statement
• Proof of homeowner’s insurance

Consider:

• Personal loans
• Cash-out refinancing
• Credit cards (for smaller expenses)

You can apply for loans or membership through the Harvesters website.

Contact a Harvesters’ CU Loan Officer.