Considering tapping into your equity but not sure if a Home Equity Line of Credit or a Home Equity Loan is better for you?
Whether you’re considering a home renovation project or a dream trip long put off, we’ve got good news for you. Our HELOCPlus+ product gives you the flexibility of a Home Equity Line of Credit plus the “budgetability” of a fixed-rate Home Equity Loan (that’s the “Plus” part).
What’s that mean, exactly? Good question.
First and foremost, the HELOCPlus+ acts as a Home Equity Line of Credit – a revolving line of credit secured by your home for use when and how you see fit. Using the HELOC part, you can access available funds as many times as you need during the first 10 years. During this period, you make interest-only payments on the amount you’ve drawn, not the entire approved line. The interest rate on a HELOC is a variable rate, meaning the rate can change over time.
With the “Plus” part, the HELOCPlus+ also features a “locking” function that gives you the option to utilize a portion as a fixed-rate loan, giving you a fixed payment that includes principal and interest.
If you lock in a portion utilizing the “Plus” part, you may continue to borrow against any available funds in your HELOCPlus+. As you borrow, you may choose to utilize the HELOC part, making interest-only payments, or you may choose to utilize the “Plus” part as long as you have no more than three active “Pluses” at one time.
But that’s not where the good news end. Right now, we’re offering an introductory1 rate of 5.99% APR for six months on the Home Equity Line of Credit part.
After the introductory fixed-rate period, the APR will vary based on the prime rate plus a margin2 ranging from 0.24% to 2.29%. As of Oct. 1, 2024, the prime rate was 8.00%. Current variable rates range from 8.24% APR to 10.29% APR.
Take a look at this chart for additional important information:
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When using the HELOC part of a HELOCPlus+… |
When using the “Plus” part of the HELOCPlus+… |
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Interest Rate |
Variable rate based on an index, plus margin |
Fixed rate for the duration of the “lock” period |
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Receive Borrowed Money |
At closing and as needed during the first 10 years (the “draw” period) |
Entire amount you choose to “lock” when your lock agreement is finalized |
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Limitations on the Parts of a HELOCPlus+ |
Unlimited advances/draws during the 10-year draw period |
A maximum number of three “locks” are allowed at one time |
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Minimum Advance |
$500 |
$5,000 per “lock” |
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Payments During Borrowing Period |
Interest-only payments for 10 years only on the amount you’ve drawn |
Fixed principal and interest payments on the amount you choose to lock |
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Payments During Repayment Period |
Principal plus interest payments for 20 years |
“Locks” are available for 36 months, 60 months, 84 months, 120 months, and 180 months |
If this sounds like the loan option for you, apply now.
1Cannot be combined with other promotions. Property insurance is required. All rates and offers are subject to change without notice. The introductory fixed-rate offer is 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 at Avadian.
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. (The $10,000 must be new money.) Closing costs and other fees are estimated to be between $300 and $700. If the 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.
Equal Housing Opportunity Lender
NMLS #422274
Equal Housing Opportunity Lender