Home Equity Line of Credit

The equity you've built can help you make improvements, add new space, or even pay for new adventures.

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What is a Home Equity Line of Credit?

A Home Equity Line of Credit is a form of revolving credit that allows you to take advantage of the equity you've built up in your home. When you use your home's equity, you're borrowing funds directly from your own equity, then repaying it — usually at a relatively low-interest rate.

Because it acts as a line of credit rather than as a standard loan, you'll have access to funding in any amount (up to the total amount of equity you have) whenever you need it. And you only pay interest on the portion of the home equity line of credit you use.

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How does a home equity line of credit work?

With a HELOC, you can access a certain amount of money, up to a predetermined credit limit, over a set period of time, usually 10 years. You can use this money for anything you want, such as home renovations, debt consolidation, or other major expenses.  HELOCs can potentially lower your monthly bills and boost your credit score by paying off high-interest credit cards, medical bills, and other debt. 

Unlike a traditional loan, you don't receive the entire amount upfront. Instead, you can borrow and repay money as needed within the set time frame. You only pay interest on the amount you borrow, not the entire credit limit.

HELOCs typically have variable interest rates, which means that the interest rate can fluctuate over time based on market conditions. The interest rate on a HELOC is usually lower than other types of loans, such as credit cards or personal loans, but it can still be higher than your mortgage interest rate.

 

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What are the benefits of a home equity line of credit?

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Flexibility

With HELOCs you can draw on the line of credit at any time during the draw period, and you only pay interest on the amount you borrow.  This means that you can use the funds for a variety of purposes. 
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Lower rates

HELOCs typically have lower rates than other types of loans because the loan is secured by your home's equity making it a cost-effective way to borrow and pay off other high-interest debt. 

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Ease of application

The application process is simple and straightforward.  Before you begin your application, it may be helpful to take a minute and review our home equity document checklist.

 

 

How long does it take to get a home equity line of credit?

Step 1. Complete a basic application.

Apply online in minutes, call 888-873-2640, or visit a Horizon Bank branch.

Step 2. Work with an Advisor.

An experienced Horizon Loan Advisor is here to guide you through the process. 

Step 3. Close on your HELOC.

Once your loan is approved your Loan Advisor will schedule your closing.

 

 

Ready to apply for a home equity line of credit?

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Get answers to your frequently asked questions about home equity lines of credit (HELOC).

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