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.

Contact a Loan Officer Apply for a HELOC

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


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 Location

  • How 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.

Contact Us

For more information about HELOCs, contact a Loan Officer.