Variable Rate Home Equity Loans (HELOCs)
A HELOC is a line of credit home equity loan. A HELOC loan is like a credit card, in that once you have paid off what you initially borrowed (either in full or in part), you may borrow more up to the original amount of credit requested. Example: If you take out a $10,000 home equity line of credit, and pay $5,000 toward the principal, you will have $5,000 of credit still available to use.
Money may be withdrawn at any time during the draw period of the loan: take what you need, when you need it, to make home improvements, to help a child through school, to pay for a wedding, or to cover other expenses, based on the equity of your home. Payments are calculated on the balance of your loan after the last advance. When you take additional advances on your line of credit, your payment will adjust accordingly. This payment is 1.5% of the balance after the latest advance.
We lend up to 80% of the appraised value of your home, minus any existing mortgages. An appraisal may be required at a cost of $300. Additional fees include a title search, flood determination, and recording of the deed. The total charges associated with HELOCs amount to approximately $600. Here at OTIS, we require no application fee, no credit check fee, and no other processing fees of any kind for our HELOC loans.
Our rates are based on the prime rate and your credit score. View our current home equity rates.
It’s easy to apply! Just stop in at the credit union and talk to one of our friendly loan officers to see if you qualify.