Home Equity Line of Credit
A Home Equity Freedom Line of Credit works like a credit card, giving you access to funds that you can borrow, pay back and borrow again. Unlike a credit card, a HELOC is a line of credit issued based on the equity you’ve built in your home. Use as much or as little as you want—for whatever you want. Perfect for your next big event, family vacation, debt consolidation, overdue home renovations and more!
*Note: A HELOC cannot be used to finance the purchase of a new primary residence, swing loan or bridge loan. Please contact us to discuss other options.
Intro Rate
1.99%
APR FOR THE FIRST 6 MONTHS1
RATES AS LOW AS
7.50%
APR AFTER THE FIRST 6 MONTHS1
Check our current Members 1st HELOC annual percentage rates (APRs) here.
(1) APR=Annual Percentage Rate. Home Equity Freedom Line of Credit (Line of Credit) introductory rate of 1.99% APR is subject to change without notice. Introductory APR is available for all new lines of credit for a 6-month period of time from the date of the line of credit account opening. Minimum $5,000 line amount to open. Refinancing of existing Members 1st Home Equity Freedom Line of Credit are excluded from introductory APR. The introductory APR will automatically terminate at the end of the 6-month introductory period. No notice to borrower required. Upon expiration of the introductory rate, the advertised regular rate applies to credit worthy borrowers with property values equal to 80% loan to value (LTV) and below. The advertised regular line of credit rate is based on Prime Rates published in the Wall Street Journal on the last business day of the previous month plus or minus a margin with a floor of 3.00%. Maximum rate of 18%. Your APR may vary. All loans and rates are subject to credit approval. All balances will accrue interest at the variable APR in effect for your account based on LTV and credit worthiness. The Home Equity Freedom Line of Credit permits borrowing up to 100% of the available equity in a primary residence and rates may vary based on creditworthiness and loan-to-value (excludes rental properties).
Fees: Members 1st FCU may pay all closing costs in conjunction with the Line of Credit agreement. If the credit union is paying any closing costs on your behalf in connection with the opening your Account and your account is paid in full and closed within 36 months, you will be required to reimburse us all third party fees paid on your behalf upon closing your account.
Property insurance is required. Other restrictions or conditions may apply. This offer may be withdrawn at any time. Pennsylvania, Maryland and New Jersey residence only. For non-members, you'll be required to join Members 1st to meet eligibility requirements. Ask an associate for details.
Calculate Your HELOC Amount
Use the following formula to determine how much you can borrow. Numbers are provided as an example and should be replaced with your specific details.
| Value of Your Home | $400,000 |
| Loan-to-Value Ratio | X 80% |
| Percentage of Home Value | = $320,000 |
| Minus Balance Owed on Home | - $200,000 |
| Potential HELOC Amount | = $120,000 |
Common Questions
Home equity comes from the payments you make towards your mortgage. Each payment you make increases the equity you have in your home.
- Using online validation tools called automated valuation models.
- Requesting a comparative market analysis from a realtor.
- Submitting your information to the Federal Housing Financing Agency’s house price index (HPI) calculator.
- Hiring a professional home appraiser.
Please be ready to provide:
- Property information such as the address, purchase price and property type.
- A property value estimation.
- The amount you'd like to borrow.
- Your personal information and contact information.
- Employment and income information.
- Information regarding all financial accounts and debts.
Applications take a few minutes to complete. You should receive an answer in two to six weeks.
You can borrow up to 100%* of the available equity on your primary residence if your mortgage balance is less than your home's value. You only pay for what you spend and the interest your balance accrues. Your HELOC will have a 10-year draw period. * During this time, you may borrow against your equity and pay interest only. Principal repayment begins after the draw period.
*100% financing is available on loan amounts up to $150,000 on a primary residence and excludes rental properties. Sample terms: If you borrow $30,000 at 8.50% APR for a 10-year term, your estimated monthly payment may be $371.96. Other restrictions or conditions may apply. Rates are subject to change without notice. Consult your tax advisor for tax deduction information.
You can choose to lock in your interest rate and switch from a variable rate to a fixed rate on all or part of what you borrow.** Variable rates allow you to take advantage of APR valleys, while fixed rates provide certainty. We do not charge closing costs or application fees (except for trust review costs for properties deeded in a trust).
** Fixed Term Option: You may lock in all or a portion of your line as a fixed term loan up to three fixed terms at one time. Terms available from 1 year to 15 year maximum. Minimum $5,000 to lock-in. Fixed term APR may vary based on term chosen. Your first fixed term lock option is free and subsequent lock options are subject to a $100 processing fee. Balances you choose to lock in at the fixed rate of interest must be repaid in substantially equal monthly payments of principal and interest. The total monthly payment under the Line of Credit will include repayment of the total of all advances under the Line of Credit to date, in addition to and including the advance(s) for fixed term lock option(s).
During your draw period, you can make minimum interest-only payments or pay as much of your principal as you want. Payments can be made online using our digital banking services or at any of our branches.
We are with you every step of the way. A customized financial plan can be created that works for you—including specific terms and rates.
You can use a HELOC for any expense. We recommend using your HELOC for long-term payments like tuition, a wedding, medical bills or home renovations.
Ready to get Started?
Applying for a HELOC is easy. Here's how you can get started: