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Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) is a revolving credit line that can provide a source of continuing credit for homeowners who have built up equity in their homes. Essentially, a home equity line of credit affords the capability to withdraw funds as you need them using your house as collateral, and then make payments back. 

A HELOC allows you to borrow against the available equity, and the loan is secured by a mortgage against the borrower’s primary residence. Customers may easily access their approved line for any purpose they choose. Whether for personal or business, the borrower can request an automatic deposit to their pre-authorized checking account. 

Reasons and Potential Uses for a HELOC

Homeowners apply for a HELOC for a variety of purposes, including but not limited to:

  • Education – Do you and your partner have extensive student loans? Are you sending two children to private school? Offered an educational opportunity with an out-of-reach cost? A HELOC might make it easier to manage those overheads.
  • Family, Care, and Support – Do you have an ailing parent, sick child, or newborn you would like to spend more time with? Is your family dreaming of adoption? HELOCs might provide financial relief so you can focus on the things that matter. 
  • Home Renovation Projects – Ready for a home makeover? Finally time to take the plunge and install a pool? Need a little extra space for your growing family? A HELOC could present you the opportunity to improve your home.
  • Debt Consolidation – Drowning in credit card debt with sizeable interest rates? HELOCs typically offer better interest rates and deliver the capability to make one payment instead of many. 

Dream vacations, costly kitchen remodels, expensive education, or unexpected life events don’t have to hold you back from financial security. A HELOC could equip you with the support and tools you need to accomplish your goals. 

Young couple celebrating after apply for a home equity line of credit in office
Young couple high-fiving on couch after applying for a home equity line of credit online

Home Equity Line of Credit Rates and Details

Home equity line of credit rates are generally based on a variable interest rate, as opposed to a fixed interest rate. Over time, the interest rate you pay will change based on several factors.

Before borrowing, talk with your lender about rates and how the value of the index rises and falls.

Home Equity Lines of Credit

Rate1

8.25%

APR1

8.25%

What Are the Home Equity Line of Credit Requirements?  

Having available equity in your home is the primary home equity line of credit requirement. The balance that you owe on your home must be less than the value of the house.

Apply for a Home Equity Line of Credit with Quaint Oak 

A home equity line of credit typically has two phases. The first, known as the draw period, is when your line of credit is open and you can borrow from that line. The second, known as the repayment period, is when you no longer have access to the line of credit and you begin making monthly payments. Speak with a Quaint Oak lender about the specifics related to your HELOC as you begin the application process. 

For more information about Quaint Oak Bank’s home equity lines of credit, contact us. Additionally, you can download our application using the button below.

All Rates are Effective 06/12/2024

1The APR shown includes a 0.25% discount for maintaining automatic payments from a qualifying Quaint Oak Bank Checking account. If you or Quaint Oak Bank terminate the automatic payment feature or close the Quaint Oak Bank checking account, your APR will increase by 0.25%, and your monthly payment will increase accordingly. Loan-to-value (LTV) ratio not to exceed 80%. Maximum LTVs may be reduced based on customer credit worthiness. Available on one family primary residence, excluding: condos, mobile homes, co-ops, investment properties, homes for sale, under construction or leased land. Annual Percentage Rate (APR) is variable based on Wall Street Journal Prime which is 8.50% as of Thursday, July 27, 2023. Maximum APR is 18% with a floor of 2.50%. Minimum line amount is $10,000. Maximum line amount is $300,000. Property insurance is required. Title insurance may be required for loan amounts of $200,000 or more. A balloon payment may result. Rates subject to change without notice. Loans subject to credit approval.