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Home Equity Line of Credit

What is HELOC?

A Home Equity Line of Credit (HELOC) is a tool which allows you to utilize the equity in your home to borrow money for whatever you need. Generally, HELOCs are used for large expenses, such as home improvements, college expenses, medical bills or even auto purchases. Often the interest on a HELOC may be tax deductible – consult your tax advisor for more information.

A home equity line of credit (HELOC) is a line of credit extended to a homeowner that uses the borrower’s home as collateral. Once a maximum loan balance is established, the homeowner may draw on the line of credit at his or her discretion. Interest is charged on a predetermined variable rate, which is usually based on prevailing prime rates.

For example:

Appraised value of home $100,000
Percentage of credit accessible x 80%
Percentage of appraised value = $80,000
Less balance owed on mortgage –$40,000
Potential line of credit  $40,000


How much can I borrow?

Home Equity Lines of Credit from TelComm CU allow members to borrow up to 80% of the value of the home. Closing costs usually run between $600-$900 and can be included in the loan. Interest is charged only on the balance owed and payments are amortized over 20 years. Members are able to borrow up to the credit limit for the first 10 years. HELOCs are serviced by TelComm CU and are not sold to an outside lender. No pre-payment penalty.


What is the current rate?

Our rates are now as low as 5.25%.


Learn more about Home Equity Lines of Credit (HELOC).