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Taking Advantage of Introductory HELOC Offers to Reduce Your Monthly Payment

We all like to save money, right? Not in the put money in savings way (though we like that too), but in the not-paying-more-than-we-have-to way. One of the ways we can help you not pay more than you have to is by helping you see the different ways to cover major expenses. Because the reality is, stuff happens, and we don’t always have enough money on hand to cover it.

Taking Advantage of Introductory Offers to Reduce Your Monthly Payment

At Avadian, we have three introductory offers¹ right now:

  • 2.99% APR introductory fixed rate for 12 months
  • 3.99% APR introductory fixed rate for 24 months
  • 5.50% APR introductory fixed rate for 36 months

After the introductory fixed rate period, the APR will vary based on the prime rate (as published in The Wall Street Journal) plus a margin² ranging from 0% to 2.50%. As of June 4, 2019, the prime rate was 5.50%.

Our most popular option is 3.99% APR introductory fixed rate for 24 months.

The Monthly Payment During Your Introductory Period

Let’s take a look at a hypothetical situation in which you choose the 24-month introductory fixed rate and opened a line of $50,000 and drew $20,000 on the line at closing:HELOCblog_Infographic

After the Introductory Period

After your introductory period ends, if the current prime rate of 5.50% APR were still in effect, your average monthly payment during the remainder of the draw period would be as low as $91.67 (these figures are based on the original $20,000 drawn). During the repayment period when you’re paying principal and interest, if the current prime rate of 5.50% APR were still in effect, your average monthly payment would be as low as $217.05.

A Home Equity Line of Credit Allows You to Budget

Not only does a Home Equity Line of Credit offer a lower interest rate than the average credit card, it also gives you the ability to make a budget. As we’ve seen, you’ll know what your payments will be during the introductory period, giving you the huge advantage of being able to plan around your payments.

How to Open a Home Equity Line of Credit

If you’re ready to open a Home Equity Line of Credit to take care of an unexpected expense, click here to get started today.

Learn more about how a Home Equity Line of Credit works.

1The 12-month and 24-month introductory fixed rate offers are not available if the property has been used by the current owners to secure another Home Equity Line of Credit in the past three years. All rates and offers are subject to change without notice and cannot be combined with other special promotions. Property insurance is required.

2The amount of the margin will vary based on several factors, including creditworthiness and loan to value ratio. Maximum lifetime rate on Home Equity Line of Credit is 15.00% APR. Closing costs will be waived with a minimum advance at closing of $10,000. Closing costs and other fees are estimated to be between $300 and $500. For the 12-month and 24-month introductory fixed-rate terms, if Home Equity Line of Credit falls below $9,000 in the first 12 months, you will have to reimburse the closing costs waived by the credit union. For the 36-month introductory fixed-rate term, if Home Equity Line of Credit falls below $9,000 in the first six months, you will have to reimburse the closing costs waived by the credit union.

All loans subject to membership, creditworthiness, and approval.

Equal Housing Opportunity Lender

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Phone: 888.282.3426
Corporate Headquarters Mailing:
P.O. Box 360287
Birmingham, AL 35236-0287


The credit union is federally insured by the NCUA. Additional insurance of up to $250,000 on your savings accounts is provided by Excess Share Insurance Corporation, a licensed insurance company.
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