Home Equity Lines of Credit

a group of people posing for a photo in front of a house

There are so many situations where a home equity line of credit can be a good option. HELOCs are a low-cost way to get (often major) capital for all kinds of things. You may want to pay down your consumer debt, cover the cost of a substantial medical need, pay for your kids' college, or even remodel the very house you're borrowing against.

Home equity, to put it simply, is the difference between what you owe on your house versus what it's worth. When you think about it in those terms, you can quickly estimate for yourself how much there could be available to borrow.

Home Equity Line of Credit

HELOC Quick Facts

  • Borrow up to 90% of your home's value, minus any outstanding mortgage balances.
  • Required Beacon Score 600+
  • 15 year loan, first 5 years is a fixed rate.
  • New lines of credit are available at an initial Annual Percentage Rate (APR) of 8% to 16%* until the first annual rate change after the fifth year.
  • After the fifth year, the rate is adjustable annually, on the loan anniversary date (max of 5% above original rate).
  • Max adjustment is 2% per anniversary, 5% floor.
  • You may request advances any time throughout the 10-year draw period.
  • $500 appraisal fee (paid upfront upon approval).
  • $225 title search fee (paid to attorney) & 1% origination fee (as a percentage of the loan amount). These can be paid at closing or taken off the line of credit.

*Terms and rates vary depending on applicant's creditworthiness and other factors. Equal Housing Opportunity.

Get Ready to Apply

When you're ready to apply for a Home Equity Line of Credit (HELOC), please email the following documents to: mortgageteam@mycvcu.org.

  • Completed and signed application
  • Verification of income (current pay stubs)
  • Last 2 years of tax returns with W2's
  • Copy of the last property tax bill received
  • Statement from first mortgage lender
  • Homeowners insurance (before loan funds, CVCU needs to be added as the 2nd lienholder)

Building Home Equity

There are two ways you can build your home equity: First, you can simply wait. The housing market has, historically, never been down for very long. Even homeowners caught in the Great Recession have seen much (and in many cases, all) of their equity return, according to a 2015 report from Statista. Another way to build up your loan-to-value ratio is by aggressively paying down that mortgage.

Once you have a sizeable chunk of equity, you'll likely want to access it. HELOCs are a great way to leverage what is, essentially, your own asset. You can think of it as borrowing from yourself.

When you're ready to tap into the potential of a HELOC for your own needs, consider Coosa Valley Credit Union your first resource.

How We're Different

Our team has the freedom to do things differently than a typical bank. Our members-first approach lets us put together an equity line of credit product that other firms simply cannot offer.

We ensure you get the best rate possible, and when you're locked in, we guarantee you that rate won't change for at least 5 years. And finally, with us, you're given a whole 10 years to use your credit before you need to start paying it back.

Ready to get started? Contact your HELOC experts at Coosa Valley Credit Union and tell us what you'd do with your equity, given the chance to claim it. We'd love to help you realize your dreams.

If you still have a few questions, check out what other members have asked before, plus answers to help you decide for yourself.

Being a homeowner has many perks, but having access to your equity is probably the best one. You don't need to sit on your home's worth. We can help you turn that value into cash so you can make use of it now.

Contact Our Mortgage Team!

Dorrie Johnson

Mortgage Loan Officer

Lawonia Bray

Mortgage Lending Assistant