Home Equity Line of Credit (HELOC)
Access your home's equity easily. Use funds for projects up to a 10-year draw period with favorable repayment terms. A HELOC works like a credit card, with a limit based on your home’s value. Withdraw the full amount at once, or take out smaller amounts as needed.
During the first five years, your payments will reduce your balance, allowing you to withdraw that amount again if needed, similar to a credit card. You will have a payment as long as there is a balance. After five years, if you choose not to extend the draw period for another five years (which requires written approval from the credit union), a repayment period will start. This repayment period can last up to 15 years from your last withdrawal. The HELOC has an adjustable interest rate that changes yearly based on the WSJ Prime Rate, plus a margin assigned to your loan based on credit risk.
This is the best option for members who want access to funds over a period of time. This is a good choice when rates are falling because you don't need to refinance to get a lower rate.
Home Equity Loan
Ideal for consolidating debt or accessing your home equity. Receive all funds up front with a steady interest rate and payment. This option could help combine high-interest debts into a single, manageable payment with a clear monthly cost for up to 15 years.
If you know how much you need and prefer stability over variable rates and payments from a HELOC, this loan is the right choice for you.