Home Equity Lines of Credit

With the recent legislation that gives Texas homeowners the ability to utilize Home Equity Lines of Credit (HELOCs), HFCU members now have access to the most flexible kind of home equity loan. Until Fall 2003, Texas was the only state that did not allow HELOCS. Now, instead of borrowing in one lump sum like a traditional home equity loan, you can use your line of credit as you need it - to pay for anything you want.

Simply give us a call at 1-866-OUR-HFCU today or complete a quick online information request form!

What Is A Home Equity Line Of Credit?

A HELOC essentially allows you as a homeowner to have a revolving line of credit based on the amount of equity in your home. This revolving account permits borrowing from time to time, at discretion, up to a set credit limit. As you pay down the balance of your line of credit, your funds become available to use again. Unlike unsecured lines of credit, the interest rates are substantially lower on a HELOC since it is secured by your home. Plus, just like the interest on your mortgage, the interest you pay on a HELOC may be tax deductible! Check with your tax advisor regarding the deductibility of interest on a HELOC.

	What Can I Do With Money From A HELOC?
With a Home Equity Line of Credit, what you do with the money is entirely up to you. You can use it to pay for education expenses, the cost of a wedding, to fix up your home, or buy a car. There's no end to the possible uses of a HELOC.

	How Much Can I Borrow With A HELOC?
You can borrow up to 50% of the home's fair market value. However, the total of all loans against your property, including an equity loan, may not exceed 80% of the home's fair market value. By law, you must draw a minimum of $4,000 at a time.

	How Long Does It Take To Get A Home Equity Line Of Credit?
Home Equity law requires a mandatory 12-day "cooling off" period before you can sign your closing papers and a mandatory three-day "Right to Cancel" before you receive your first advance.