Home Equity Line of Credit
A home equity line of credit (HELOC), sometimes referred to as a second mortgage, is an equity loan that allows a borrower access to equity in their home. A HELOC is a revolving line of credit that can be used as much or as little as needed; borrow money, pay it back and borrow again without any renewals or additional paperwork during the draw period.
Can I use a HELOC to pay down my credit card?
A HELOC is similar to a credit card account but has lower rates!
Just like a credit card, a home equity line has a credit limit based on the equity in your home. You can also use this credit line for whatever you want, whenever you need it.
Use a HELOC for any variety of reasons, including:
- A rainy day
- Auto expenses
- Short-term expenses
- Home or yard improvement
- Medical bills
- Investment opportunity
- Vacations
- Education costs
- Payoff higher rate loans
- Debt consolidation
With a Bank of Utah HELOC, there is no annual maintenance fees—meaning that you only pay on money that you borrow.
Benefits of a HELOC with Bank of Utah:
- Fast processing, typically in 3-4 weeks
- No closing costs for loan amounts under $250,000
- No pre-payment penalties after the first 3 years
- No annual maintenance fees!
- Up to 80% combined loan-to-value (CLTV)
- 10 year draw period, 10 year repayment period
- Low Interest rates
- Ability to securely and easily upload requested documents
HELOC Rates
A home equity line of credit provides interest rates that are typically lower than credit cards!
Frequently Asked Questions:
Do I need to apply for a home equity line of credit in person or can I apply from home or my phone?
We have both options! You can apply at home or on the go using our convenient online application: Apply for a HELOC. Of course, you can always come into any Bank of Utah branch location to apply for a home equity loan. Find a Bank of Utah LocationHow much money can I borrow?
Up to 80% CLTV of the value of your home.How is CLTV determined?
A CLTV is calculated by taking the balance of a first mortgage plus the proposed limit of the HELOC divided by the appraised value of the home.Is an appraisal required for a HELOC?
Yes, most loans require a limited appraisal to determine the value of the home, which we request at no cost to you for loan amounts under $250,000.Are there really no closing costs with a HELOC?
Yes! As long as the amount of the line of credit is less than $250,000 and you keep the line open for longer than 3 years, there are no closing costs or prepayment penalties.My credit score is low; can I still qualify for a HELOC?
Each scenario is unique. Contact a Loan Officer to discuss your specific situation.Can I use a HELOC to pay down my credit card (or other debt)?
Yes. A HELOC can be used for any expense. A HELOC also has lower interest rates than a credit card, allowing to pay down the balance quicker! Contact a Loan Officer to learn more about using a HELOC for debt consolidation.
