--- title: The HELOCPlus+ Is Ideal for Today's Uncertain Rate Environment description: A HELOC Plus offers protection against rate increases while also giving you the flexibility to take advantage of future rate decreases. image: https://blog.avadiancu.com/hubfs/Blog_Q3HELOC%20Plus.jpg --- [Skip to main content](https://blog.avadiancu.com/the-heloc-plus-is-ideal-for-todays-rising-rate-environment#maincontent) # The HELOCPlus+ Is Ideal for Today's Uncertain Rate Environment ![Q2HELOC2023V2_Email](https://blog.avadiancu.com/hs-fs/hubfs/Q2HELOC2023V2_Email.jpg?width=509&height=233&name=Q2HELOC2023V2_Email.jpg) Is it time to finally tackle that home renovation project? Or time to take that dream family trip before the kids are off at college? Whatever the reason, tapping into your home’s equity is a great way to pay for it. And with our HELOCPlus+, you can lock in a rate now to protect against rate increases in today’s rising rate environment while also preserving the flexibility to take advantage if the Federal Reserve lowers rates. How exactly does that work? The HELOCPlus+ 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). 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+ gives you the option to lock a portion of the HELOC as a fixed-rate loan, giving you a fixed payment consisting of both 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, or you may choose to utilize the “Plus” part as long as you have no more than three active “Pluses” at one time. Take a look at this chart for additional important information: |   | **When using the HELOC part of a HELOCPlus+...** | **When using the “Plus” part of the HELOCPlus+…** | | --- | --- | --- | | **Interest Rate** | Variable rate based on an index, plus margin | Fixed rate for the duration of the "lock" period | | **Access to Funds** | 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 | | **Limitations on the Parts of a HELOCPlus+** | Unlimited advances/draws during the 10-year draw period | A maximum of three "locks" are allowed at one time | | **Minimum Advance** | $500 | $5,000 per "lock" | | **Payments During Draw Period** | Interest-only payments for 10 years on the amount drawn | Fixed principal and interest payments on the amount you choose to lock | | **Payments During Repayment Period** | Principal plus interest payments for years 11-30 | "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](https://applynow.avadiancu.com/products/heloc). 1Cannot be combined with other promotions. Property insurance is required. All rates and offers are subject to change without notice. The introductory 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 closing costs will not be waived if the funds advanced at closing are used to pay off existing loans with Avadian. 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. 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