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Home Equity Line of Credit
A home equity line of credit, or HELOC, is a revolving line of credit secured by your home that can be used as needed. Some common uses are to help fund large purchases, make home improvements to your home, consolidate and pay off high-interest rate debt, help with a child's college tuition, or just to have funds available in case of an emergency.
HELOC KEY FEATURES
- Interest only payments on outstanding balance during the 10-year draw period
- Loan amounts from $10,000 to $500,000 - 1st and 2nd liens only
- No early payment penalties for paying down principal balance
- May be on your primary home or a vacation home in Washington or Oregon (Rental properties are excluded)
- Lower rates than most personal lines and credit cards
How does a HELOC work?
At 1st Security Bank you can borrow up to 80% of your home’s value as a line of credit. This line is revolving, much like a credit card, allowing you to use the funds repeatedly during the draw period.
The draw period lasts for 10 years during which time your minimum payment is interest only on any outstanding balance. You are welcome to pay down the principal balance at any time during this period.
The repayment period last for 20 years and begins immediately after the draw period ends. During this time, you pay off any outstanding balance at a set interest rate.
How much can you get out of your home?
This depends on several factors such as the value of your home, your credit score, your income and how much is owed on your current mortgage. We can offer lines up to $500,000 as long as total loan-to-value is under 80%.
Why should you get a HELOC?
A HELOC is a revolving line of credit secured by your home that can be used as needed. It has a low annual fee, no closing costs for loans under $400,000 (unless a full appraisal is needed), and can provide a safety net for unexpected expenses down the line.
How are available funds accessed?
We offer many ways to access your available funds, such as: HELOC checks, in person withdraws, transfers to other 1st Security Bank accounts, cashier checks and external withdrawals.
What homes qualify for these a HELOC at 1st Security Bank?
Homes must be within 25 miles of a 1st Security Bank branch or home lending office. Single family homes, manufactured homes, condominiums, townhomes, and owner-occupied duplexes are eligible. Restrictions may apply.
Are there restrictions on qualifying manufactured homes?
Yes. They must be less than 20 years old, be real property (title eliminated - taxed as land + improvements), no singlewides, no second moves.
Can I get a HELOC as a bridge loan to purchase another primary residence?
No. Our HELOC is not intended to be used as a bridge loan. Our home lending team does have bridge loan options available and a loan officer can help you choose the best program for your purchase.
Are there closing costs and fees?
Fees will vary depending on the specifics of your loan, common items include:
- Annual Fee: $60.00 for loans under $250,000 or $125.00 for loans over $250,000 (Waived the first year)
- Early Closure fee: 2% of the line amount, not to exceed $500.00, if closed within 3 years
- Appraisal: Required if loan amount is greater than $400,000.00 at borrower expense
*Additional product terms and conditions can be found on the Home Equity Line of Credit Early Disclosure