Home Equity

Reach your goals with home equity

An OCCU home equity line of credit (HELOC) allows you to use the value you've built up in your home as collateral for a loan. The credit union HELOC provides you with a revolving balance, just like a credit card, that you can use to fund important goals like furthering your education, making home improvements, or consolidating debt. If you have equity in your home, have a reasonable credit score and have steady income to make monthly payments on your loan, a HELOC may be exactly what you need to reach some of those big life goals. Getting started is simple, with quick approvals and no application fee.

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Why choose a HELOC?

OCCU has affordable HELOC options for all homeowners, with rates that are lower than many other forms of credit. For instance, getting a HELOC instead of using a credit card can save you hundreds of dollars in interest. OCCU HELOCs offer you high loan-to-value rates. With no-equity-required options, five- to 15-year terms, and credit lines up to 95% of your home’s value, you can get exactly the line of credit you need. You can learn more about this home equity line of credit option in our blog “HELOC: Is this the home equity loan for you?”

How a HELOC works

Like a credit card, a HELOC has a credit limit that you can borrow against. The amount of credit you receive will depend on your credit score, your income, the value of your home and the remaining balance on your mortgage. The first years of a HELOC are known as the “draw” period. During this time, your minimum monthly payments will be interest only, and you may borrow up to the full credit limit. The interest rate will vary with the prime rate, as reported in the Wall Street Journal, so your monthly payment may change over the course of the draw period, but will remain interest only. You can, however, pay off part or all of the balance during this period and then borrow it again. The draw period varies, depending on what type of HELOC you get. At OCCU, the draw period on our HELOCs ranges from five to 15 years.

At the end of the draw period, you will no longer be able to access funds from your HELOC, and the repayment period will begin. During this 10- or 15-year period, you will continue to pay the interest on your loan, but will also begin to pay on the loan balance. Your payments will be calculated so that the entire loan is repaid by the end of the period. What life goals could you reach for with a HELOC?

Our dealings were always smooth, always easy when we needed titles released or whether it’s property or a vehicle or the HELOC. Everything we do we do there.

Jan Burch

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Home Equity Line of Credit FAQ »
*Rates current as of 07/01/2017. Variable rate based on prime plus margin. Margin amount depends on creditworthiness. Current APRs range from 4.75% to 10.25%. Maximum APR is 18.00%. Estimated account opening fees $175.00 - $2,300.00; these fees vary depending on circumstances. $175 origination fee.