A HELOC is a line of credit that allows you to borrow against the value, or equity, built up in your primary, vacation or second home, or rental property. A HELOC is open-ended, so withdraw only the money you need, as you need it, within a specific time period. Borrow any amount up to your credit line at any time within 15 years, subject to terms of the account agreement. You'll only pay interest on the amount advanced. You'll make regular payments until the loan is paid in full, based on the current interest rate and your loan balance.
HELOC and your mortgage
You can borrow up to 90% of the appraised value of your home, minus the amount owed on your mortgage. You can borrow up to 65% of the appraised value of a rental property. Interest payments from your HELOC may be tax deductible; consult your tax advisor.
In addition, your HELOC can serve as protection for your LGFCU Checking Account, when you opt in to our Overdraft Transfer Service. Funds will be transferred to the Checking Account in $500 increments from Home Equity Lines of Credit.
You can access more cash even faster with a real-time loan advance from your HELOC.
Is a HELOC right for you?
We've got you covered:
- No application or credit report fees
- No origination fees
- Close at a branch near you, if applicable
Primary residences, vacation or second homes, and rental properties are eligible for HELOCs. The property must be located in North Carolina, South Carolina, Virginia or Georgia. HELOCs are not available for manufactured homes. Property insurance is required with a HELOC.
Using a HELOC from the Credit Union makes sense. The application process was smooth and fast.I’m satisfied.
How to calculate your HELOC payment
The minimum payment due is based on the APR, your highest loan balance, and the billing frequency you selected when applying.
Each time you pay the loan balance to $0, the required payment amount resets.
The table shows the APR and billing frequency that determines your payment per $1,000 you borrow.
Minimum payment by APR per $1,000 borrowed below |
||
| APR | Monthly | Semi-Monthly/Bi-Weekly |
|---|---|---|
| Up to 12.00% | $12.00 | $6.00 |
| 12.25% - 15.00% | $14.00 | $7.00 |
A HELOC in action
Now let’s look at an example. Shirley A. Member has a primary home valued at $400,000 with a mortgage balance of $320,000. First she calculates the maximum amount she can borrow using 90% loan-to-value.
Next, Shirley decides to borrow the maximum amount possible. Since payments are based per $1,000 of the amount borrowed, her required minimum payment if repaid monthly with an APR up to 12.00% is calculated like this:
Shirley’s monthly payment is $480.
Your resources: Loan Information Checklist and HELOC Terms
HELOCs are subject to approval, are available for properties located in NC, SC, GA or VA, and are not available for manufactured homes.
